How To File ITR in India/ Procedure to file ITR [2020]

Author- Tejal Agre
Content Writer

What is ITR:

Before knowing how to file ITR in India, we should know what is ITR. Income Tax Return (ITR) is a form in which the taxpayer has to file information concerning his tax and income earned to the Income Tax Department. The Income Tax Act, 1961 makes it necessary under various scenarios for a taxpayer to file an income tax return. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending in March of the next year. Income can be of various forms such as:

  • Income from salary
  • Profits and gains from business and profession
  • Income from house property
  • Income from capital gains
  • Income from different sources that can be dividend, interest on deposits, royalty income, winning on lottery, etc.

The Income Tax Department has prescribed seven types of ITR forms – ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and applicability of the form will depend on the nature and amount of income and the type of taxpayer.

Why you should file ITR:

It is necessary to file the Income Tax Return (ITR) in India

  1. If the subsequent conditions mentioned below are applicable to you:
  • For individuals below 60 years – Rs 2.5 lacs.
  • For individuals above 60 years but below 80 years Rs 3.0 Lacs.
  • For individuals above 80 years Rs 5.0 Lacs.

2. If you have more than one source of income like house property, capital gains etc.

3. If you want to claim an income tax refund from the department.

4. If you have attained from or have invested in foreign assets during the financial year.

5. If you wang to apply for visa or a loan

6. If the taxpayer is a company or a firm, irrespective of profit or loss.

how to file ITR in india
Close up of Indian Income tax return form on isolated background

What is the procedure for filing ITR

Income Tax Return ITR can be filed in two ways. e.g-

Procedure for Filing ITR:

First Procedure:
The user can file ITR online by the mentioned steps:-

  • Before we ought to start, you tend to have the subsequent documents at hand to pace up the process: PAN, Adhaar, Bank account details, Form 16, and Investments details.
  • Then Go to the Income Tax e-Filing portal, Login to the e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  • Then click on the ‘e-File’ menu and click the ‘Income Tax Return’ link. There PAN will be updated, Choose ‘Assessment Year’, ‘ITR Form Number’, ‘Filing Type’ as ‘Original/Revised Return’, ‘Submission Mode’ as ‘Prepare and Submit Online
  • Click on continue and after that fill in all the mandatory details of the ITR form.
  • Choose the suitable Verification option in the ‘Taxes Paid and Verification’ tab.
    Choose any one of the subsequent options to verify the Income Tax Return.
  • Click on the ‘Preview and Submit’ button, Verify all the information entered within the ITR form, and submit the ITR.
  • The e-Verification is often done through any of the methods by entering the EVC/OTP
  • When you enter the EVC/OTP, the ITR will be auto-submitted.
  • Once you have got filed your income tax returns and verified them, the status of your tax return is ‘Verified’. Once the processing is complete, the status becomes ‘ITR Processed’ and you can even check your ITR status online. 

Note- You can e-verify the return through any of the mentioned six modes: 1) Netbanking, 2) Bank ATM, 3) Aadhaar OTP, 4) Bank Account Number, 5) Demat Account Number, 6) Registered Mobile Number & E-mail id. E-verification eliminates the need to send a physical copy of the ITR-5 acknowledgment to CPC, Bengaluru.

2nd Procedure:

  • First, go on the official website
  • Download the suitable ITR utility under ‘Downloads > IT Return Preparation Software’ and extract the downloaded utility ZIP file.
  • Open that file and fill the applicable and mandatory details of the ITR form.
  • Then you have to Validate all the tabs of the ITR form and Calculate the Tax.
  • After calculating the tax Click on “Generate XML” and then Click on “Save XML” to save the XML file at your desired location.
  • Then you have to Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  • Then Go to “e-File menu and select Income Tax Return link.
  • You have to choose the “Assessment Year”, “ITR Form Name” and under the Submission Mode” select, “Upload XML”
  • You have to then any one of suitable option to verify the return and click ‘continue’.
  • Then you need to attach the ITR XML file and verify as per the option chose by you and submit the ITR and once it is done you will receive an email.

Consequences of failing to meet the deadline of ITR filing date and non-filing of ITR:

If in case you missed filing the ITR then you have to pay a penalty after the due date as per the government.

For nonfiling of your ITR, the tax department can impose penalty a minimum penalty equal to 50% of the tax which was avoided by you, and in addition to the liability to pay the interest till the date you ultimately file your ITR once receiving notices from the tax department.
The income tax department can even launch prosecution against you for the non-filing of ITR. The tax laws prescribe a minimum of three years of imprisonment term and which may extend up to seven years. But the department can not launch prosecution in case the amount of tax sought to be avoided not exceed Rs. 10,000/-

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