According to a recent survey, the total number of individuals who filed income tax returns saw an increase of 62%, whereas the number of taxpayers only grew a mere 22%. Even so, many individuals in India find the process of taxpaying complicated or challenging. Consequently, to make the process more efficient, the government of India introduced e-filing of income tax returns with a simple ITR login procedure.
Steps to file an income tax return
Individuals can follow the steps below for ITR login to file income tax returns online –
Step 1: Go to the official online portal of the Income-tax department.
Step 2: If you are filing ITR online, then you should click on the ‘register yourself’ button.
Step 3: After you have selected the ‘register yourself’ button, you will be taken to a new window where you have to choose the type of user you are from the options – individual, HUF, chartered accountants, tax deductor and collectors, external agency, third party software developer, other than individuals/HUF.
Step 4: Next, you will have to enter some necessary details such as PAN, name, date of birth, residential status, address, contact details, password etc.
Step 5: After you have submitted the form, an OTP will be sent to your registered mobile number for identity verification. Enter this OTP to authenticate your registration. If you do not provide the OTP within 24 hours of receiving it; then you will have to begin the IT return login procedure again.
After you have completed the registration procedure for ITR login, you can follow the step below to e-file your income tax –
Step 1: Click on the ‘login tab, which is below the new registration button on the homepage.
Step 2:Once you have been redirected to the login page, you will have to provide your User ID or PAN and Income tax login password.
Step 3: Next, click on the ‘income tax return’ link from the ‘e-file’ menu.
Step 4: On the income tax return page, enter the assessment year, income tax return form number, filing type, and mode of submission.
Step 5: Go through the instructions carefully before filling in all the details in the income tax return online form.
Step 6: You also need to choose a suitable verification option before submitting your income tax return form online. You can choose from six options including the following –
Aadhaar based OTP
EVC via net banking
EVC via bank account
Income tax return via Demat account
EVC via bank ATM
Sending signed ITR-V to the Centralised tax processing centre in Bangalore via standard or speed post.
Before ITR login, individuals must compute the net taxable income, and the amount of tax one is required to pay. To this end, they must first take into consideration all the deductions that are applicable to their income. For instance, taxpayers who are currently servicing a home loan can avail of deductions under the following section –
Under Section 24b, individuals can avail of a deduction of up to Rs.2 lakh on the interest component of a home loan if it was used towards construction or purchase of house property that is self-owned. One can also avail of additional deduction up to Rs.30000 on loans borrowed for repairs or reconstruction.
However, in the case of a rented property, the upper limit has not been specified. Additionally, one can also avail of home loan tax benefits for under-construction properties within this section.
Taxpayers can claim a deduction of up to Rs.1.5 lakh on the principal repayment of a home loan under this section.
Section 80EEA –
This section allows first-time homebuyers to claim an additional Rs.1.5 lakh over and above the Rs.2 lakh that can be availed under Section 24b. Apart from this, they should also go through more tips for saving for their first home.
Home loan borrowers can also use online tools like an income tax calculator offered by some lending institutions to compute their taxable income, income tax amount and the deduction that can be availed on the home loan amount.
While at it, they can also check their pre-approved offers provided by some lending institutions to simplify the loan application procedure by entering their name and contact information. Besides home loans, such options can be availed on other financial products too, such as loan against property and more.
However, before proceeding with ITR login for filing Income Tax returns, individuals must keep in mind that after budget 2020, taxpayers will have the option to pay tax according to the old regime or follow the new one. Nevertheless, one should have a proper idea regarding income tax slabs and exemptions under the new tax regime before making any decision.