How to File Income Tax Return Online Using Form 16 in India?
A tax system is a very old tradition that has been followed since ages. There have been many amendments made in the tax system which helped in the betterment of the society. There are various types of tax charged but this article is specifically about income tax. Income tax is the tax charged on your annual income where you pay a certain amount to the government as taxes for utilizing the services offered by the government. There are bars mentioned wherein if you earn that much amount then you have to pay a certain amount as taxes. Tax filing is important as it is the responsibility of every citizen to help or repay the government for its services. It also helps in making the country developed.
What is Income Tax Return?
Since you have got an idea about what income tax is, it is equally important for you to know what income tax return is. Income tax return is basically a document that you file with the Internal Revenue Service which looks over the taxation part of the state board for paying or managing taxes while reporting your income, expenses, profits, and losses. It also includes other deductions or tax refund and your tax liability where you can file for income tax return because of reasons such as tax paid earlier or because TDS have been paid which brings the situation where you are eligible for tax refund. For this very reason, you need to file an income tax return.
How to file Income Tax Return?
Usually, income tax return is filed annually. In India, it is filed at the end of the financial year which is March 31st.
However, every taxpayer is advised to file an income tax return before the due date to avoid penalty. There are various ways through you can file Income Tax Return and with time technology has always been used in the same. You can now file income tax return online which is not only easy and convenient but also safe and secure with everything mentioned properly.
In this article, we will specifically know about income tax return filing online using Form 16. Before moving forward to know the procedure, we must know what Form 16 is. Form 16 is basically a TDS certificate which is issued by the employer when TDS is deducted by them. It is mandatory for an employer to issue Form 16 whenever TDS is deducted on salaries mentioning the details of the tax deducted and deposited. As it is clear now what Form 16 is, it is time to know how to use it for income tax return filing online.
It is very easy to file income tax return online using Form 16. You just have to follow the below-mentioned processes and you can easily file ITR online in no time.
- First, get Form 16 from your employer or from your office or workplace.
- Fill the form accordingly without any mistake.
- The form consists of two parts- A & B.
- In Part A of Form 16, you are supposed to fill details such as- Name & address of your employer, PAN & TAN of your employer, PAN of yours, a summary of tax deducted and deposited and certified by the employer.
- Coming to Part B of Form 16, you need to again follow certain other details there. They are as follows: Taxable income, the breakup of section 80C deductions, TDS, Aggregate if section 80C deduction including a gross and deductible amount and tax payable or due refund.
- Once you fill the above details, you can log on the income tax portal and look for ITR 1 (SAHAJ) which is specifically designed for individuals with income from salary and interest.
- Check your tax credit with Form 26AS. It will show you the amount of tax deducted from your salary and deposited with the IT department.
- Make sure that the data on Form 26AS matches with the data on Form 16.
- You also need to upload interest statement for savings accounts as well as fixed deposits. You will get a deduction of up to Rs. 10,000 for interests earned on a savings account.
- Upload your bank statement.
- Previous year’s tax return statement is also to be uploaded.
- Profit and loss statements or audit reports if applicable.
- Other documents that are needed are- Payslips, rent receipt for claiming HRA, details of ELSS, SIPs, mutual funds, etc for reporting capital gains, the name of the tenant or rental agreement for reporting income from property or providing loan documents and details for exemption from tax if any housing loan is there.
- Your PAN number is your user ID so use it for filing tax return online.
- Choose the financial year for which you are filing returns.
- Download ITR forms applicable to you.
- You can check the tax amount by clicking on the calculate tax tab.
- Click on pay tax if applicable and fill in the challan details.
- Confirm all your detail uploaded there by clicking on Validate option.
- Get an XML file on your system.
- Go to upload returns on the portal and upload the saved XML document.
- Digitally sign the file and get the acknowledgment form, ITR Verification (ITR-V) and download it.
- Take a print out of the ITR-V form and sign it in blue ink and post it to the Income Tax Department-CPC to Electronic City Post Office, Bangalore, Karnataka- 560100 within 120 days of filing IT return online.
The above-mentioned process will help you file income tax return easily using form 16 online. It is a quick and simple way to file income tax returns and become a responsible citizen. The last date for filing an income tax return is usually March 31st of every year for Government salaried person, Small to Med businessman and private sector it’s a 31 July, but last year the government has extended the date till August 31st for salaried individuals and those have transaction less than 2 crores.