Income Tax Return e-Filing - Complete Guide with Steps - FY 2021-22 (AY 2022-23)
Most Comprehensive guide for Individuals for FY 2021-22 (AY 2022-23) for e-filing income tax returns in India in simple language
Income Tax Department has been very proactive from last one year and working too hard on making the compliance as strong as possible in our country. From introducing the provision u/s 234F for non-filing of income tax returns to making- most of the processes online by eliminating the traditional paper-based compliances; the objective of the department is very clear that it wants your files to be clean and compliant with the law.
In this article, we will share the most crucial information that you must know while filing of your income tax return (ITR) for FY 2021-22 (AY 2022-23).
What is Income Tax Return?
Income Tax Return (ITR) is a form through which you report the details of your income earned from various sources and thereon pay taxes to the Income Tax Department. ITR contains all the details of incomes and tax-saving investments done by an individual in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax Return (Forms are relevant for individuals, companies, firms, etc.).
Why Filing a tax return in India is important?
The Income Tax Act 1961, obligates certain eligible persons to file their income tax returns once a year. Filing of Income Tax Return legitimize your earnings and investments whereas non-filing means that you have not disclosed your eligible income which is required to be disclosed as per law, which becomes your Black Money. Also, by filing your Income Tax Return you can get an income tax refund, if you have paid excessive taxes to the government. Further, your Income Tax Return plays a crucial role in the time of applying for loans, credit cards, etc.
What is eFiling of Income Tax Return?
E-filing of Income-tax return is filing your Income-tax return online., There are two ways to file an Income-tax return in India:
- One is the traditional method i.e. offline in paper format, where the return is submitted physically to the IT department. and,
- The other one is the electronic mode, where you can submit your return online through the income tax website or by following a few simple steps on Tax2win.
As per the latest announcement by the Income Tax Department, income tax returns can be filed through online method only. However, the super senior citizens are allowed to use the offline paper mode.
Who is required to file an Income Tax Return?
Every Indian including an NRI is required to file an Income tax return where Total Income exceeds the basic exemption limit of Rs. 2,50,000 for an individual; Rs. 3,00,000 in case of a senior citizen and Rs. 5,00,000 in case of super senior citizens.
Total Income comprises income from all sources i.e., income from salary, house property, business income, capital gains or any other taxable income. This limit is to be checked before giving the benefit of deductions like 80C, 80D, 80DDB etc.
You are required to file a return irrespective of the fact whether you have paid tax or not. So, even if the employer has deducted TDS in full you are still required to file an income tax return.
- Business Turnover of Rs. 60 lacs,
- Professional Receipts of Rs. 10 lacs,
- TDS & TCS of Rs.25,000, or
- Deposit in Saving Bank Accounts is equal to or more than 50 lacs
- You are a beneficial owner of any asset located outside India.
- Have any financial interest in entities located outside India.
- The beneficiary of any asset located outside India.
In simple words, if you have any foreign income connected, you have to file your ITR on or before the due date.
From 2019, given below individuals are also required to file an Income Tax Return even if their total income is below the basic exemption limit in the following cases:
- who has incurred expenses on payment of electricity of an amount of Rs. 100,000 or more during the year
- who has incurred expenses of Rs. 2 lakhs or more for foreign travel, either for himself or another person
- Who has deposited Rs. 1 Cr or more in the current accounts maintained with a banking company or a co-operative bank
- Also, a person who claims exemption under Sections 54 and 54F (reinvestment of long-term capital gains or LTCG from a property sale), where income before the exemption is more than the minimum exemption limit, will have to file ITR.
Let’s take a few quick and easy examples of real-life situations to understand it better:-
|Income from salary (after Standard deduction)||2,90,000||2,71,000||8,92,000||4,98,000||1,90,000|
|HRA, Medical and other allowances- EXEMPT||8,000||74,000||2,43,000||1,00,000||0|
|Net taxable salary||2,82,000||1,97,000||6,49,000||3,98,000||1,90,000|
|Gross Total Income||3,13,000||1,97,000||7,79,000||3,98,000||1,90,000|
|Deductions (80C,80D etc.)||45,000||-||1,90,000||1,50,000||-|
|Total Income Taxable||2,68,000||1,97,000||5,89,000||2,48,000||1,90,000|
|ITR filing required||Yes||NO||Yes||Yes||NO|
(Refer to column 4- “Gross total income” in the ITR form 1 to know the total income)
Is there any benefit of filing a return if an individual’s income does not exceed Rs 2,50,000 / Rs. 3,00,000 / Rs. 5,00,000?
If your income doesn’t exceed Rs 2,50,000 during the year, then you’re not legally bound to file your return. But it’s still recommended that you file your return because of the benefits that come with filing an income tax return:
What will happen when I have taxable income, but do not file my income tax return?
Having taxable income and not filing income tax return can put you in trouble with the Income Tax Authorities. Be prepared to welcome notices from Income Tax Department along with fines and penalties. The consequences of non-filing of return are:
- Late filing Fee u/s 234F shall be levied if the return is not filed on or before the due date. The quantum of fees shall vary according to the amount of your income and return filing date. The maximum fee levied is Rs. 5000/-.
- Notice u/s 142(1) which requires you to file your return if you have not filed it before the due date. if you fail to comply with this notice then it may result in:
(a) Best Judgement Assessment u/s 144 and/or
(b) Penalty of Rs. 10,000 u/s 271(1)(b) and/or
(c) Imprisonment with or without fine u/s 276D.
- Notice u/s 148 for furnishing return within the period as mentioned in the notice itself.
As per Section 270A, if income is under-reported due to
- Wrong disclosure / misreporting then the penalty shall be leviable @200% of tax payable on such income and
- In any other case, the penalty shall be 50% of tax payable on such income
- A penalty of minimum 100% to a maximum of 300% of the amount of tax for concealment of income u/s 271(1)(c).
- Interest u/s 234A keeps on mounting at the rate of 1% per month/ part of the month till the time you file your return. Also, you'd be required to pay interest u/s 234B and 234C, both at the rate of 1% per month/ part of the month if you've not complied with the advance tax provisions at the time of late filing of return.
- If you have losses (Business, Capital loss) which you want to be carried forward, you can not carry forward your loss if you do not file an Income Tax Return or file after the due date.
When should I file my Income Tax Return?
The due date for filing the Income Tax Return is the 31st of July (after the end of each financial year for which it has to be filed). Although, for the people who fall within the limits of tax audit, the due date is 31st October and in the case where transfer pricing is applicable, the due date is 30th November after the end of the financial year.
Note: Persons who fall in the limits of Tax Audit are:
- Person carrying on business and sales/turnover exceeds Rs.1 Cr.
- Person carrying on profession and Gross Receipts exceeding Rs 50 Lakhs.
- A person carrying on business or profession under the provisions of section 44AD and sales/turnover exceeds Rs 2 Cr. or declaring income lower than the deemed income under the applicable section.
NOTE: The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2022-23 (FY 2021-22) if the taxpayer’s cash receipts and cash payments are limited to 5% of the gross receipts or gross payments. The same limit has been increased from Rs. 5 crores to Rs. 10 crores from AY 2022-23 (FY 2021-22)
What will happen in circumstances where I have missed the due date or made a mistake while filing my Income Tax Return
You can file a belated return 3 months prior to the end of relevant assessment year i.e. For FY 2021-22 (AY2021-22) the filing date of it would be till. (It is called a belated return i.e., late-filed return (After the due date) but with the payment of late fees u/s 234F).
You can Revise your already filed ITR three months prior to the relevant assessment year i.e. For FY 2021-22 (AY 2022-23) filing the date would be 31st Dec 2022.
From here check all the due dates to stay one step ahead of Income Tax
What will happen if I don’t file an Income Tax Return on or before the due date?
Following are the consequences if you do not file your Income Tax Return on or before the due date:- non-filing of ITR. Some of them are:
- You can not carry forward the losses from your business.
- Lose Interest on refunds.
- Pay Interest under section 234A @ 1% per month for late filing of return.
- Late filing fee u/s 234F up to Rs. 5000 depending upon taxable income and date of return filing will be levied.
- You may receive the Notice from the Income Tax Department.
What are the options available to a person if he/she misses the due date or if one wants to file a tax return after the deadline of Income tax return filing is over?
Well, even if one misses the due date, still they can file the Late/Belated Return. A belated income tax return can be filed three months prior to the relevant assessment year. You can file the ITR of FY 2021-22 as a belated return till 31st December 2022.
What is the process for e-Filing of your Income Tax Return?
Income Tax online filing is a simple process and can be done by sitting at home for free with Tax2win.
You can also use the government portal to file your income tax return. The link of the government website is https://www.incometaxindiaefiling.gov.in/home. Filing on Tax2Win or Government portal will not make any difference because ultimately the return gets filed with the government portal in both cases and both sites are 100% free of cost for filing. You can check this link for any help required during eFiling on the government portal- https://www.incometaxindiaefiling.gov.in/help/?lang=eng
Our Users finds Tax2Win website more friendly and easy to use since it is designed basis inputs from lakhs of people who are using it to eFile income tax return every year.
Which ITR form to fill out for filing my income tax return in India?
The applicability of the ITR form depends on the source and quantum of income and residential status. Check the ITR form applicable to you for FY 2021-22 (AY 2022-23)-
|ITR FORM||Type of TaxPayer||Residential status||Who can file?||Who cannot file?|
|ITR 1||Individuals*||-Resident -Ordinary Resident||Income From -
|ITR 2||Individuals and HUFs||-Resident -Ordinary Resident -Non-resident (NRI_ -Non-Ordinary Resident||Income From -
|ITR-3||Individuals and HUFs||-Resident -Ordinary Resident -Non-resident (NRI_ -Non-Ordinary Resident||Income From -
||Any other body corporate|
|ITR-4||Individuals, HUFs and Firms (other than LLP)||-Resident -Ordinary Resident||
|ITR-5||Firms (including LLPs) AOP, BOI, Local Authority, Artificial Jurisdiction Person||-||
||Not for: Companies claiming exemption u/s 11|
What documents are needed to file ITR?
Although documents differ with the income source still there are a few documents that are common while filing ITR. Also, note that you do not need to submit/upload any of the documents on the website, these are advised to be kept with you so that required information can be filled correctly, your time is saved and common errors can be avoided)
PAN Card- PAN Number is the mandatory requirement while filing the Income Tax Return. Your name & DOB on ITR should be the same as written in a PAN card.
Aadhaar Card- The government has also made it compulsory for all the taxpayers to use Aadhaar while filing ITR.
Bank Account Statements- Just to find Incomes, Interest on Saving bank account etc. So that you do not miss reporting of any income in ITR.
Bank Account Details- Your details of all the bank accounts i.e Bank account number, IFSC code and Bank Name is needed to be mentioned while filing ITR.
Challan Details- It includes details such as the challan no., BSR code, date, amount of payment of Advance Tax/ Self Assessment Tax etc.
Original Return/Notice- If an individual is filing a revised return or a return is filed in response to notice received, then he is required to fill in the details of the original return and details of notice.
Check the complete list of documents for ITR filing when you have income from salary, house property, capital gains and other sources.
How to e-file ITR with Form 16?
The procedure to e-file return with form-16 is as follows:
- Choose "File It Yourself" and click on the "File ITR Now" option at tax2win.in and
- Upload your Form 16. After uploading form 16, Tax2win software will auto-fill the Form 16 data.
- Verify your tax computation now and edit if required.
- Click "FILE MY RETURN" button and you are done!.
Can I e-file ITR without Form 16?
What will be the next steps after e-filing of Income Tax Returns?
Once you are done with e-filing of income tax return, you must:-
- Check your inbox of email id as provided in your income tax return form, You will receive an intimation for successful filing of your Income Tax Return, along with ITR-V (Acknowledgement) attached with eMail.
- Cross Check all figures thoroughly in your filled ITR form or ITR-V for any error, mistake etc
- Verify the Income-tax return by sending a physical copy to CPC Bangalore or you can e-Verify online. Once the return has been successfully Verified, the return filing procedure ends here. And now your job is done.
- IMPORTANT, In case you have a refund in your tax return you shall receive the same in your bank account within the next few days. It is better to keep tracking your refund status so that you do not miss out on any important updates from the department. You can keep checking the refund status from here
Note:- Verification of an ITR is an important step without which your return filing process is not completed. within the time limit (120 days) you have not verified your tax return,it shall be considered “Invalidate” i.e. null and void. It means that no Income Tax Return has been filed at all.
What is the timeline & methods for completing e-Verification of an Income Tax Return?
You are required to complete the verification process by either signing it manually or electronically within 120 days from the date of filing your income tax return. You can find out the details here to know step by step process for both modes.
There are various methods to e-verify ITR:
- Through Net banking
- Through Bank ATM
- Aadhaar OTP
- Bank Account number
- Demat Account.
- Physically sending ITR-V.
Check the complete guide on e-verification.
What is the latest amendment introduced u/s 234F i.e., Fees for filing of Income Tax Return AFTER the due date and other consequences of non-filing or late filing of income tax return?
With a view to improvising tax compliance and effective utilization of information in tax administration, it is important that returns are filed within the due dates. Keeping this in view the law imposes certain fees u/s 234F in case the returns are not filed on time, these are as under:-
If a return is filed on or before the due date i.e. 31st July* - No Fees
If a return is filed after the due date but before 31st Dec.*- Upto Rs. 5,000
*(In case of extension, then these dates will be replaced by such extended date)
NOTE:- In case total income is up to 5 Lacs then the amount of penalty will be Rs. 1,000 in all cases irrespective of the timing of the filing of your return after the due date.
Further, provisions related to fees for delayed filing of income tax returns are applicable from Financial year 2018-19 (Assessment year 2019-20) onwards only.
Apart from 234F, you need to pay interest on the unpaid amount of Tax under 3 different sections of the act.
- 234 A- @1% per month or part of the month for delay in filing your income tax return
- 234 B- @1% per month or part of the month for non-payment or short payment of advance tax.
- 234 [email protected]% per month or part of the month for Non-payment or short payment of individual instalments or instalments of advance tax (i.e., deferment of advance tax)
Refer to the detailed guide on 234A, 234BC, 234C interest to know more about these sections and how these may impact you. Click Here
An important piece of advice that we would like to pass on to all our readers is that:- The Income Tax Department and tax laws in the country have become more strict in recent times and they will be more compliant & strict in the near future.
The current laws, however, are still lenient and flexible. So, without any delay start making your Income Tax files cleaner and stronger from this year itself. File accurate income tax returns; And if you do need any help or assistance in filing of strong and clean Income Tax Returns.
Take assistance of our experts and 4.9 star service rated team of chartered accountants. Please send your queries, feedback and suggestions to [email protected]
Frequently Asked Questions
Q- What is Income Tax?
Income Tax is simply Tax to be paid on income earned by you. The amount is required to be paid to the government (Income Tax Department) directly.
Q- What is the last date for filing income tax returns for the FY 2021-22 (AY 2022-23)?
The Due date(or last date) of filing an income tax return for individuals and other taxpayers (HUFs, Association of Persons, Body of Individuals) whose accounts are not required to be audited for the FY 2021-22 (AY 2022-23) is 31st July 2022.
Due date (last date) for another assessee please click on link
Q- How to link Aadhar Number with PAN Card?
- Online : Using Income Tax e-filing Website
- Linking of PAN and Aadhaar can also be done through SMS. Type UIDPAN <Space><12 Digit Aadhaar No.><Space><10 Digit PAN> and send an SMS to 567678 or 56161. For Ex- UIDPAN111122223333 AAAPS1111A
- Link Aadhaar-PAN manually by filling Annexure-1 along with the supporting documents i.e. copy of PAN card and Aadhaar card. through visiting PAN/UTIITSL/NSDL centres.
Q- Who can file the return Offline (In paper form)?
Offline mode is only available for Super Senior Citizens (individuals whose age is 80 years or more during the financial year) and whose income is less than Rs 5 lakh per year and who do not have to claim a refund in the return.
Q- How to calculate the amount of tax to be paid?
You can easily calculate your tax by using our Income Tax Calculator. Here you just need to fill in the required information in an orderly manner and at last, you will get the amount required to be paid as tax.
Q- How to make a tax payment online?
Every individual can pay taxes by Online or Offline method stated by the Income Tax Department. Please refer to this link to know more details about it.- https://tax2win.in/guide/online-income-tax-payment
Q- I have filed my return, when will I get a refund?
Normally, it takes 20-50 days to get your refund after filing your Income Tax Return. You can track the live refund status from here.
Q- How to correct a mistake made while filing ITR?
As per Section 139(5) of the Income Tax Act, taxpayers can file a revised return to rectify the mistake made while filing ITR. A Tax return can be revised 3 months prior to the relevant Assessment year for which the return is filed.
Q- What is Form 26AS and how it is helpful in filing an income tax return?
Form 26AS is your Tax Credit statement where consolidated details are available about the total tax deducted (TDS) by different parties, while making payment to you and the total tax deposit by you (Advance Tax, Self-assessment tax etc.).
Q- Do I need to file returns even if my company has deducted tax on my salary?
Yes, you are required to file your tax return even though TDS has been deducted by your employer, provided your income exceeds the basic exemption limit of Rs. 2,50,000. Further, You can not claim an excess money refund without filing your tax return.
Q- What is ITR-V?
ITR-V is the acknowledgement of your return filed which is sent to your email as soon as the return is filed.
Q- Is it necessary to attach documents while e-filing ITR?
No, documents are not required to be attached/ uploaded but it is advised to keep them with you. they may be asked by income tax authorities if any assessment notice is served to you in future.
Q- Can I file my ITR for A.Y. 2022-23 after 31st July 2022?
If you have not filed your return until the due date i.e., 31st July 2022 then you can file a belated return.
Q- Which ITR should be filed for Income from salary or commission or both?
If you have income only from the commission, then you are required to file ITR-3 because commission is treated as business income.
However, if you have income from both salary and commission and income from salary is your primary source of income, then you can file ITR-1 and can show commission income as income from other sources, For only salary income, file ITR-1
Q- Is it mandatory to file an income tax return for income less than 5 lakhs?
Yes, as per section 139(1) of the Income Tax Act, 1961, every individual is required to file an income tax return if their income exceeds INR 2,50,000. So, if your income is INR 5 lakhs, then you are required to file ITR, even if no taxes are required to be paid.
Q- What is the minimum income for income tax?
For taxpayers, there is no tax on income if their taxable income does not exceed Rs. 5,00,000, however, you are required to file a return if your income exceeds Rs. 2,50,000
Q- Which ITR form is to be filled if income is from interest earned on FD only?
If you are an individual or HUF (Hindu Undivided Family) earning income from interest from FD only, then you can file ITR-1
Q- I have an income from my salary as well as capital gains, which ITR form do I need to select: ITR-1 or ITR 2?
ITR-2 is applicable to all those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources but not from business income. Hence, you are required to file ITR-2.
Q- Which Income tax return form should I fill if I am an NRI with no income in India?
An NRI is only required to file a return if he has earned or received any income in India. If there is no income in India an NRI is not required to file income tax returns.
Q- What should I write in the capacity column of the ITR 1 form?
The capacity column indicates the status of the person who has filed the return. if you are filing for yourself then choose self and if you are filing for others then choose representative, if you are filing for HUF then Karta, If you are filing for Partnership then Partner & so on as applicable in your case.
Q- How do small shopkeepers file an income tax return?
If small shopkeepers have a turnover of up to Rs. 2 crores, then they can file their return under the presumptive scheme under section 44AD.
Q- I worked for two companies last year. Do I need to use an ITR-2 for e-filing?
You can file ITR-1 even if you have two employers in a single financial year; provided income does not exceed INR 50 lakhs. ITR-2 is required to be filed by those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources.
Q- What will happen if I don't e-verify my income tax return?
You are required to either e-verify your return or send it to CPC, Income Tax Department, Bengaluru within 120 days of filing the return, failing to do so will result in invalidation of return which means the return will be considered as never been filed. You can file a belated return if you have not verified your return in the stipulated time.
Q- Can a buyer of a car claim TCS in his income tax returns?
Yes, the buyer of a car can claim TCS in his return. Any amount paid as taxes by the taxpayers can be verified with Form 26AS and can be claimed. If no taxes are required to be paid while filing the return, you can claim a TCS refund from the government.
Q- What if I have forgotten my user ID of the E-filing Website?
Default User id for income tax E-filing Website is your PAN no. if you have forgotten your password, you can reset it by clicking on forgot password link provided on the login page itself and following the steps.
Q- Do I need to file the balance sheet with the income tax return in India?
If you have income from business and filing the ITR-4 form, only certain disclosures are required, not the complete Balance sheet-like sundry debtors, sundry creditors, stock and cash in hand. And, if you are filing ITR-3 & showing business income then you need to fill the balance sheet also.
Q- Can I use my income tax return copy as an income certificate for college admission?
Yes, it’s a valid and reliable certificate of the income. It’s the most reliable source to show income for the last financial year.
Q- How do I file a revised income tax return after a refund has been paid to my account?
You can file a revised return if there is any mistake in the return that is observed by you even though the refund has been claimed by you.
Q- How do I register on the e-filing portal of the Income Tax Department if I don't have any surname, which is a mandatory field?
In case you don’t have a surname you can show your first name directly in the surname field since the first name field is not mandatorily required.
Q- Is it necessary to report intraday trading losses in an income tax return?
Yes, it is necessary to report intraday trading losses for income tax. Intraday trading is considered a speculative activity and should be reported as a business income.
Q- What is meant by return submitted and not verified status for an ITR?
A return submitted means return has been filed with the Income Tax Department but it will be processed further only after it is verified. Therefore, “return submitted and not verified” means the return has not been processed further in absence of verification of return.
ITR-V has to be sent to the CPC, Income Tax Department, Bengaluru within 120 days of e-filing. You can also verify your tax returns electronically. It can be done through any one of the means.
- Net Banking
- Aadhaar OTP
- EVC code through department’s website
- Giving bank account details on e-filing website or
- Giving DEMAT account details on income tax e-filing website.
Q- I forgot to give the BSR code and challan number while filing the ITR online. Can I pay the outstanding tax online after this?
BSR code and challan number are just the receipts from the bank that you have paid the tax. If you have already filed your income tax return (ITR) and paid the tax, there is no point in you having outstanding tax. However, if you have some tax outstanding, you can pay the tax.
Q- Do I have to share my income tax website user ID/password if I want a CA or some tax firm to file my income tax returns in India?
Normally to file an income tax return, one is required to provide income tax credentials with the concerned CA but with tax2win you can file your return without sharing your income tax id and password.
Q- What is the RSA token number which is required when filing your income tax? How is it acquired?
RSA stands for Request Service Acceptance. This is usually a 4 digit number that is to be entered along with the password while filing an income tax return. RSA is generally formed of one’s PAN details and his or her birth dates.
Q- Do I need to mention my foreign income in Income Tax Returns as an NRI?
No, for filing the income tax return as an NRI you need not mention your income from abroad. Only the incomes accrued or earned in India are to be mentioned in the income tax return. Only incomes from India are taxable.
Q- If a deduction is not reflected in my Form 16. Can I claim it while filing ITR?
Yes, if any deduction or allowances has been skipped to be claimed in Form No 16, the tax filer can still claim the same while filing his/her income tax return.
Q- Can a company or association of professionals file ITR 4?
No, ITR 4 can only be filed by individuals, HUF and firms other than LLP having a presumptive income. For more details click here.
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