How to be a responsible citizen?
Well, there are many ways in which we can showcase our love and responsibility towards the country, Income Tax Filing is one of them. It is that time of the year when we look forward to celebrating our independence, while also filing our returns to be independent from financial worries, isn’t it?
Recently, I did my IT filing and while I was doing so, I came across the term called e-filing. Yes, I agree that there were days when we dreaded the very term ITR filing as it required a lot of documentation, papers and proper organisation of them. But now, with e-filing, this challenging task has become a lot easier and more convenient. How? Well, with our country progressing towards becoming Digital India, the hassle of ITR filing is now short lived, with the existence of e-filing which allows us to file our income tax returns within a matter of few clicks. Isn’t that super amazing?
This means that we no longer need to stand in long queues with unending number of papers to complete a responsibility every year. e-filing is the short form of electronic filing of Income taxes. With e-filing, we no longer need to visit the Income Tax Department office to file our income tax returns, instead we can electronically file our Income Tax returns online every year.
What are the ways to do E-filing?
There are basically 3 ways to file Income Tax Returns electronically
- One can use a Digital Signature Certificate (DSC) to file their income tax returns electronically. A DSC is a useful way of signing the documents electronically, as it is equivalent to the digital form of physical or paper certificates or documents.
- One can e-file without a Digital Signature Certificate, too. For that, they have to generate an ITR-V (Income Tax Returns Verification), which is a one page document. If in case one’s Aadhar details are not updated on the Income Tax site, they can print this form, sign and submit it to CPC, Bangalore via post within 120 days from the date of e-filing.
- If you don’t wish to use any of the above options, one can simply e-file their tax returns with Aadhar number or through bank.
What are the benefits of filing income tax returns?
Apart from fulfilling your responsibilities and doing your part, filing ITR could be beneficial for a number of reasons.
Refund: A portion of the taxpayer’s income, be it a salaried individual or a businessman, is deducted from their income as TDS. But, if one is already paying their income tax on time, the excess tax paid can be refunded.
Visa: Whenever one is travelling abroad, they have to apply for a visa. The destination country requires the submission of income tax returns for some years. This has to be presented at the destination country’s embassy or consulate.
Loans: Your financial status and condition can be gauged by your income tax returns which allows you to apply for loans without much hassle
Credit Cards: Just like for loans, even Credit Cards are issued to those who are financially sound and there’s no better way to verify that, than the filing of the income tax returns.
Documents required for filing of ITR?
- Aadhaar (Linked to PAN)
- Bank Account details
Computing income from salary
- Salary Slips
- Rent receipts for claiming HRA
- Form 16
- Interest certificates from savings and deposits account
- Insurance and home loan details
- Details about investments liable for deductions
- Any other proof of income (For eg. Income from house property, Income from capital gains)
Once done with the filing, make sure you verify it. You can also check the below links for more info