Detail Information About Online Income Tax Return File

Online Income Tax Return File is the easiest process for all professionals or individuals who file a tax return. 

It is the most prominent helping hand to serve the economy. So here in this blog, you will get to know about all the vital details related to the topic.

So Check Now for more info…. 

An Income Tax Return (ITR) is a form that a person or a company/organization is supposed to submit to the Income Tax Department. 

It contains information about the person’s income and the taxes to be paid during the year. 

If the return shows that excess tax has been paid during the year, then the taxpayer will be eligible for a refund.

Online Income Tax Return File Imposed On:

Government imposes a tax on taxable income on all persons who are individuals, Hindu Undivided Families (HUF), companies, firms, LLPs, a body of persons, local authority, association of persons, and any other artificial judicial persons.

As per Income tax laws, every eligible person must file a return every year that earns any income during a financial year. Income could be in the form of a salary, income from house property, business profits, or income earned through dividends, capital gains, interest, or other sources. 

Tax returns should be filed within a specified date. If the taxpayer fails to abide by the time limit, he/she has to pay a penalty.

In India, it is mandatory to go for an offline or Online Income Tax Return File if the income is above the basic exemption limit. Income tax slabs are pre-determined by the government. Delays in filing returns can attract penalties. 

According to Income Tax Act, Income tax is to be paid by Individuals, companies, associations, and persons, etc. who fall within certain income brackets.

Hike in Opportunity After Online Income Tax Return File

In the game of life, your success is measured in numbers, figures in your bank account and annual earnings reflected in your tax return. These numbers have the potential to either open doors, create opportunities for development and growth, or close doors. 

Business owners and professionals will find an opportunity to strike more frequently, by filing their annual online income tax return file. 

The filing of your income tax return is not only to state your earnings to the Income Tax Department and pay taxes owing, but it allows you to avail of other aids, that can be beneficial for you in the short and long-term future.

Online Income Tax Return Filing Portal:

The income Tax Portal is an independent portal launched by the income tax department. One can go to https://www.incometax.gov.in/iec/foportal if one wants to file ITR electronically/ online.

Steps Of Online Income Tax Return File

Here you will aware of the online income tax return file procedure. There are a few simple steps that one can follow while applying for an online income tax return file.

1. Go to https://www.incometax.gov.in/iec/foportal

2. You can Register on the portal using your PAN. Those who are already registered click on ‘Login’

3. Direct to e-file and click on ‘Income Tax Returns

4. From the menu select ‘File Income Tax Return’

5. Choose the ITR form and Assessment Year. 

6. Select ‘Original/ Revised Return’

7. Then click on ‘Prepare and Submit Online

8. Fill in the essential details asked in the ITR form

9. Calculate ‘tax payable’

10. Click on ‘Preview and Submit

11. Complete the verification by sending the Aadhar OTP

12. Enter the OTP sent to the registered mobile number and then submit

Benefits of Online Income Tax Return File

Companies are engaging in Online Income Tax Return File as it has many advantages for them.  Here are some of the many reasons listed below: -

1. Income Tax Return act as a Legal Document 

Income Tax Return holds immense legal value. It is a record with the government. It acts as legal proof in two ways:

Firstly, Identity Proof – Income Tax Returns can be used as identity proof in various scenarios. The government also accepts it as proof of residence.

Secondly, an Online Income Tax Return File contains all the details of income and expenses of your business or company based on which tax is calculated. Thus, it can be used as Income Proof for purchasing the property.

2. Filing Income Tax Return help to claim the deduction

To reduce the burden of tax and thus encourage more businesses to pay their taxes, the government allows few deductions. These deductions and exemptions can be availed by doing some expenditure such as rent, rates, taxes, repairs and insurance for premises, depreciation on buildings, machinery, plant or furniture being tangible assets, or any other expenditure laid out wholly and exclusively for purposes of business and profession and thus help in reducing the taxes one ultimately pays.  TDS and rebates may be claimed back as well. 

But to claim these deductions one has to opt for Online Income Tax Return File. 

3. Easy Loans

It is one of the most important documents while applying for loans. If say, you decide to purchase a new plot or building or a car for business purposes and your company needs to apply for a loan for the same. 

The bank requires the company to submit some documents such as a Certificate of Incorporation, MOA, Details of Directors, etc. 

One of the important documents that the bank asks for is the Income Tax Return for the last three years i.e., the income proof. This is done to access your past and current financial situation and whether you will be able to pay the loan or not. 

Not only while applying for a loan, but the bank can ask for offline or Online Income Tax Return File for issuing credit cards as well. Credit card companies also ask for financial statements and returns before issuing the card. 

4. Avoids Penalty

The taxes are governed by the Income Tax Act 1961. All companies that generate income, irrespective of whether they’ve made any profit or not through the year have to submit Online Income Tax Return File. So, if the company fails to file its Income Tax Return then it can attract a penalty.

The Income-tax officer will levy a penalty of Rs. 5000 and other punishments if you do not file Income Tax returns. Thus, one should file an online e-income tax return file to be safe from penalties and punishments arising out of such an act.

5. Claiming Losses

Online Income Tax Return File submitted within the due date is mandatory to claim specified losses for an organization, such as losses from capital gains, business or profession, etc. By opting to file tax returns, not only does it benefit the business to claim the losses carried forward in future years, but it also serves as a document to track losses that can be claimed in the future. 

For example – A loss from business can be carried forward and paid with the future income from the business 

6. No Duplication

The file of income tax return electronically does not require duplication in hard copy.

7. Avoiding Errors

E-filing software greatly reduces the number of errors. The software makes it possible to automatically verify tax and accounting returns, process data more accurately, and report following the standard.

8. Confidentiality

Online income tax return filing software free provides a necessary level of information security and is equipped with the latest encryption software to protect privacy.

Documents Required for Online Income Tax Return File

It is necessary to submit all the relevant documents required at the time of filing online tax returns. 

Conclusion

Online Income Tax Return File is often seen as a cumbersome process by the majority of the business. That is why many decide to skip filing returns. As a responsible citizen one needs to make sure that the return is filed every year. And it is also a moral duty of every organization.

Online Income Tax Return File not only helps you but also offers assistance for your economic growth. The tax you pay is used by the government to build infrastructure and to improve other facilities of the nation such as medical, defense, etc.

Online XBRL is the leading platform that provides the solution for your Tax Services in India. It is one of the major services which you need whether you are a professional or an experts. 

You can connect with them to gain various benefits and you can also get quick service solutions. 

Check online income tax return file status & Connect onlinexbrl.comToday for more expert advice.