E-filing of income tax was introduced a few years back. But only a few tax payers were using it successfully. But this year filing of income tax has become mandatory for the individuals who earn more than Rs. 10 lakh income. Here are a few steps on e-filing of returns.
1. How to e-file – One has various options while e-filing. it can be done by downloading the required ITR from the website and the instruction manual helps in the process. The salaried individuals, who do not have any other source of income will find it easier.
2. Essential forms – If the tax payer has income from salary, pension or rental income from property then ITR 1 is the required form. The ITR 2 for the rental income from more than one property and ITR 3 for partnership firms. ITR 4 for tax payers having income from business.
3. Essential documents – While filing returns the tax payer has to produce the bank account details. This is a very important step especially when you have refunds to claim.
4. ITVR – While filing returns the ITR by posting XML generated file on website, it generates ITVR which has to be sent to CPC Bangalore within 120 days of filing returns.
5. Deadline – The last date of filing is March 31 next year, but people who file by July 31 enjoy some privileges.