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Income Tax

What is Income Tax E-Filing?

E-filing of ITR or electronic filing of ITR is the process of submitting your income tax returns online to the Income Tax Department. E-filing has become popular over the last few years because of its convenience and ease of usage. It doesn’t require manual prints of documents, doesn’t require visiting the Income Tax Office and execution is online.

 Who should file an Income Tax Return through E-Filing?

  • Individual/HUF who is less than 60 years of age and has an annual income more than Rs 2.5 lakh i.e. above basic exemption limit -has to file income tax returns, according to the Income Tax Act.  For senior citizens, the basic exemption limit is Rs 3 lakh, and for those who are more than 80 years old, the basic exemption limit is Rs 5 lakh.
  • For Companies it is mandatory to file income tax return irrespective of profit or loss. Further in case of company E -filing is mandatory.
  • A Firm or an Individual or a Hindu Undivided Family (HUF) whose books of account are required to be audited under section 44AB shall furnish the return of income electronically under digital signature. In other words, in such a case, e-filing with digital signature is mandatory.
  • A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
  • Taxpayers claiming relief under section 90, 90A or 91 shall furnish the return of income electronically with or without digital signature or by using electronic verification code.
  • If an Assessee wants a refund then filing a return is compulsory.
  • If an Assessee wants to carry forward or set off losses then filing of return is compulsory too.
  • The return has to be filed for any income from Properties used for – a charitable trust; religious purposes, research; political purposes, medical institutions; hospital or any other institution.
  • You must file a return if you have entered into any transaction under the Annual Information Return.

Important Dates to Remember

The due date of ITR filing for:

  • Individuals, Professionals and Small Businesses– is usually on  31st July of the Assessment Year – i.e. 31st July 2021 for AY 2021-22.
  • Audit Cases (Company, Tax Audit cases etc.) and for Partners of a Firm or LLP where Audit is required – is usually on 31st October of the Assessment Year – i.e. 31st October 2021for AY 2021-22.

Instead of waiting for the last date one can start filing their ITR from 1st March 2021 up until the due date. Tax Shield provides all the services required for you to get your ITR filed well within the due date and stay ahead of time.