Best Income Tax Return e-filing Services In India

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What are Income Tax Return e-filing Services in India?

Income tax return e-filing services in India is a mandatory process where individuals and entities report their annual income to the government. This involves disclosing various sources of income, deductions, and tax payments made throughout the financial year. Filing income tax returns is not only a legal requirement but also an essential financial practice to ensure compliance with tax laws and regulations.

Benefits of Income Tax Return e-Filing Services In India:

1. Legal Compliance: Filing income tax returns is a legal requirement mandated by the Income Tax Act 1961. Compliance with tax laws helps avoid penalties and legal repercussions.
2. Claiming Deductions: Income tax returns allow individuals to claim various deductions and exemptions available under the tax laws. This can help reduce the tax liability and maximize savings.
3. Faster Processing of Refunds: E-filing income tax returns enables quicker processing of refunds by the Income Tax Department. This ensures timely receipt of any tax refunds owed to the taxpayer.
4. Financial Planning: Regularly filing income tax return e-filing services in India provides valuable insights into your financial situation. It facilitates better financial planning and helps assess your tax liabilities and obligations.

Who Must File Income Tax Returns

• Individuals with total income exceeding the basic exemption limit.
• Resident senior citizens (age 60 years or above) with income above the exemption limit.
• Resident super senior citizens (age 80 years or above) with any income.
• Individuals with foreign assets or income are subjected to tax relief or refund.
• Taxpayers claiming a refund or seeking to carry forward losses.
• Individuals who are obligated under special circumstances as mandated by the Income Tax Act.

Documents needed for Income Tax Return e-filing Services In India

Here’s a list of documents required for income tax return e-filing services in India:

1. PAN (Permanent Account Number) card.
2. Aadhaar card.
3. Form 16 issued by your employer (for salaried individuals).
4. Form 26AS, which reflects details of tax deducted at source (TDS) and other taxes paid.
5. Bank statements/passbook for interest income.
6. Details of income from house property, if applicable.
7. Investment proofs for claiming deductions under various sections of the Income Tax Act, such as LIC premium receipts, health insurance premium receipts, etc.
8. Details of any other income sources, such as rental income, capital gains, etc.
9. Proof of tax-saving investments, such as receipts for ELSS (Equity Linked Savings Scheme), PPF (Public Provident Fund), NSC (National Savings Certificate), etc.
10. Any other relevant documents of income or deductions claimed.

Ensure that you have all necessary documents in hand before initiating the income tax return e-filing services in India method to ensure accuracy and compliance with tax regulations.

Income tax return e-filing process

Here’s a stepwise guide to the income tax return e-filing process:

1. Gather Required Documents: Collect all necessary documents such as PAN card, Aadhaar card, Form 16, Form 26AS, investment proofs, bank statements, and other relevant documents.
2. Choose the Right Form: Select the appropriate income tax return (ITR) form based on your income sources and category. Common forms include ITR-1 (Sahaj) for salaried individuals and ITR-2 for individuals with income from multiple sources.
3. Access the Income Tax Department Portal: Visit the official Income Tax Department website or authorized e-filing portal.
4. Register or Login: If you’re a new user, register on the portal using your PAN, email ID, and other required details. If you’re an existing user, log in using your credentials.
5. Select Assessment Year: Choose the relevant assessment year for which you’re filing the return.
6. Fill in Details: Fill in the details required in the selected ITR form, including personal information, income details, deductions claimed, and tax payable/refundable.
7. Verify Information: Review all the entered information carefully to ensure accuracy and completeness.
8. Calculate Tax Liability: The portal will automatically calculate your tax liability based on the details provided.
9. Upload Documents: Upload supporting documents such as Form 16, investment proofs, and other relevant documents as required.
10. Verify Aadhaar or EVC: Verify your return using either Aadhaar OTP or Electronic Verification Code (EVC) generated through net banking, bank ATM, or registered mobile number.
11. Submit Return: Once verified, submit your income tax return electronically on the portal.
12. Receive Acknowledgment: After successful submission, you’ll receive an acknowledgment or ITR-V (Verification) form. Download and keep it for your records.
13. Complete Verification (if applicable): If you’ve chosen to verify your return offline (by sending the signed ITR-V to the Centralized Processing Centre), complete this step within the stipulated time.
14. Monitor Refund Status: You can track the status of your income tax refund, if applicable, on the portal.

By following these steps diligently, you can ensure a smooth and hassle-free income tax return e-filing process.

Income Tax Rates

Income tax slabs under new tax regime for FY 2024-25
(If you are not claiming deductions and exemptions)

Deductions:

• HRA u/s 10(13A): Benefits will be available on whichever is the lowest among
  these three.
  1. Actual Rent Paid
  2. Actual Rent Paid – 10% of Basic Salary
  3. 50% of Basic Salary – for NCR/40% of Basic Salary – Non-NCR
•  Standard Deduction u/s 16(ia) – The limit of this deduction, applicable only to salaried persons, is Rs 75,000.

(A) Investments:

•  80C: Deduction in respect of Investment made in Equity Linked Saving
  Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums,
  principal sum of a home loan, SSY, NSC, SCSS, etc. The deduction limit is Rs
  1.5 lakh together with section 80CCC and section 80CCD(1).

(B) Pension:

• 80CCC: Deduction in respect of contribution to certain pension funds. The
  deduction limit is Rs 1.5 lakh together with section 80C and section 80CCD(1).
•  80CCD(1): Deduction in respect of contribution to pension scheme of Central Government – in the case of an employee, 10 per cent of salary (BASIC+DA) and in any other case, 20 per cent of his/her gross total income in a FY will be tax free. Overall limit is Rs 1.5 lakh together with 80C and 80CCC.
• 80CCD(1B): Deduction up to Rs 50,000 in respect of contribution to pension
  scheme of Central Government (NPS).
• 80CCD(2): Deduction in respect of contribution to pension scheme of Central Government by employer. Tax benefit is given on 14 per cent contribution by the employer, where such contribution is made by the Central Government and where contribution is made by any other employer, tax benefit is given on 10 percent.

(C) Medical:

• 80D: Deduction in respect of Health Insurance premium. Premium paid up to Rs 25,000 is eligible for deduction for individuals, other than senior citizens. For senior citizens, the limit is Rs 50,000 and overall limit u/s 80D is Rs 1 lakh.
•  80DD: Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability. The maximum deduction limit under this section is Rs 75,000.
• 80DDB: Deduction in respect of expenditure up to Rs 40,000 on medical
  treatment of specified disease from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed.

(D) Loan:

•  80E: Deduction in respect of interest on loan taken for higher education without any upper limit.
• 80EE: Deduction in respect of interest up to Rs 50,000 on loan taken for residential house property.
• 80EEA: Deduction in respect of interest up to Rs 1.5 lakh on loan taken for certain house property (on affordable housing).
• 80EEB: Deduction in respect of interest up to Rs 1.5 lakh on loan taken for purchase of electric vehicle.

(E) Donation:

• 80G: Donations to certain funds, charitable institutions, etc. Depending on the nature of the recipient, the limit varies from 100 per cent of total donation, 50 percent of total donation or 50 per cent of donation with a cap of 10 per cent of gross income.
•  80GGA: Full deductions in respect of certain donations for scientific research or rural development.
• 80GGC: Full deductions in respect of donations to Political Party, provided such donations are non-cash donations.

(F) Rent:

• 80GG: Deductions in respect of rent paid by non-salaried individuals who don’t get HRA benefits. Deduction

(G) Interest:

• 80TTA: Deductions in respect of interest on savings bank accounts up to Rs
  10,000 in case of assesses other than Resident senior citizens.
• 80TTB: Deductions in respect of interest on deposits up to Rs 50,000 in case of Resident senior citizens.

(H) Disabled Individual:

•  80U: Deduction in case of a person with disability. Depending on type and extent of disability maximum deduction allowed under this section is Rs 1.25 lakh.

Capital Gain

STCG:

•  Applicable on Holding of All Listed Equity Shares, Units of Equity oriented mutual fund Less Than 1 Years.
  Tax Rate – 20%
• Applicable on Holding of Residential House Property & Commercial Land & Building Less Than 2 Years.
  Tax Rate – As Per Income Tax Slab

LTCG:

• Applicable on Holding of All Listed Equity Shares, Units of Equity oriented mutual fund More Than 1 Years.
  Tax Rate – 20%
  Exemption- 1.25 Lakh
• Applicable on Holding of Residential House Property & Commercial Land & Building More Than 2 Years.
  Tax Rate –
  (1) 20% with Indexation (if property purchased before 23rd July, 2023)
  (2) 12.5% without Indexation
  Exemption:

Section 54
 The profit earned on the sold Residential House Property can be invested in a new residential house property. Due to which the tax will be zero.

Condition
1. Investment in new property should be done 1 year before or 2 years after the
sale.
2. If investment is made in plot. Then construction should be completed within 3
years of sale.

3. The invested property cannot be sold before 3 years less capital gains will
have to be paid.

Section 54EC

Profit earned from sold Land & Building can be invested in government bonds like REC, IRFC, PFC and NHAI.

Condition
1. The bonds purchased should not be redeemed before 5 years.
2. Investment in bonds must be made within 6 months of selling the property or
before filing income tax return.
3. The limit of bonds purchased is 50 Lakhs.

Section 54B
The profit earned on the sold Agriculture Land can be invested in a new
Agriculture Land. Due to which the tax will be zero.

Condition
1. The invested property cannot be sold before 2 years less capital gains will
have to be paid.

Section 54F
The profit earned on the sold Commercial Land & Building can be invested in a new Residential House Property. Due to which the tax will be zero.
Condition
The same three conditions that apply for residential house property apply here as
well.

Note:
1. There will be no tax payable on profit earned on sale of agricultural land if
that land falls under RURAL area only.
2. If a taxpayer cannot invest in a new asset before the income tax return due
date, they have the option to deposit the funds in a Capital Gains Account
Scheme (CGAS) Account in 2 years to avail of the capital gain exemption.

With our expertise and personalized approach, we ensure that your tax obligations are met efficiently and accurately.

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