E-filing your Income Tax Return (ITR) for FY 2024-2025 (AY 2024-25): A guide to online registration

The Income Tax Department has enabled online filing of Income Tax Return (ITRs) for the Assessment Year (AY) 2024-25. This article guides you through the process of registering online to e-file your ITR.

Who needs to register?

If you haven’t already registered on the Income Tax e-filing portal (https://www.incometax.gov.in/iec/foportal/), you’ll need to do so before filing your return.

Registration process:

1. Visit the Income Tax e-filing portal.
2. Click on ‘Register Yourself’ under the ‘Login’ section.
3. Select the type of taxpayer (individual, HUF, etc.) and provide your PAN details.
4. Enter your name as per PAN and date of birth.
5. You’ll receive a verification code on your registered mobile number and email address. Enter these codes on the portal.
6. Set a strong password for your account.

Note: Ensure your mobile number and email address are linked to your PAN for a smooth registration process.

Benefits of e-filing:

• Faster processing of ITRs.
• Convenience of filing from anywhere, anytime.
• Reduced chances of errors compared to manual filing.
• Secure storage of your tax return data.

What to do after registering?

Once registered, you can log in to the portal and access various functionalities, including:

• Downloading the relevant ITR form based on your income profile.
• Uploading documents and claiming deductions.
• Calculating your tax liability.
• E-filing your ITR.
• E-verifying your return using various methods like Aadhaar OTP or netbanking.

Additional resources:

The Income Tax Department website provides helpful resources for taxpayers, including tutorials and FAQs on ITR filing. You can also consult a tax professional for guidance on your specific tax situation.

Remember: The deadline for filing ITRs for AY 2024-25 will be announced by the Income Tax Department. Stay updated and file your return well before the due date to avoid penalties.

Benefits of E-filing your ITR for FY 2024-2025 (AY 2024-25)

E-filing your Income Tax Return (ITR) offers a multitude of advantages compared to the traditional paper-based method. Here’s a breakdown of the key benefits:

Convenience and Efficiency:

• File Anytime, Anywhere: No more waiting in queues or rushing to meet deadlines. You can e-file your ITR at your convenience, 24/7, from anywhere with an internet connection.
• Faster Processing: E-filed returns are processed electronically, leading to quicker turnaround times and potentially faster refunds.

Accuracy and Reduced Errors:

• Built-in Validation: E-filing software often includes validation checks that can identify and prevent errors in your tax calculations and data entry.
• Reduced Manual Work: Eliminates the risk of errors associated with manual data entry by the tax department.

Security and Accessibility:

• Secure Storage: The Income Tax Department securely stores your e-filed data, minimizing the risk of loss or damage compared to paper returns.
• Easier Access: You can access your past ITRs and other tax documents electronically for future reference or loan applications.

Additional Advantages:

• Faster Loan Approvals: E-filed ITRs can serve as proof of income, speeding up loan application processes.
• Eligibility for Tax Refunds: Efficient e-filing facilitates faster processing of tax refunds you may be entitled to.
• Reduced Paperwork: E-filing promotes a greener approach by minimizing paper usage.

Overall, e-filing your ITR is a faster, more secure, and more efficient way to fulfill your tax obligations. It offers convenience, reduces errors, and provides easy access to your tax information.

Who have to fill ITR in India?

In India, the requirement to file an Income Tax Return (ITR) depends on your income profile and certain specific situations. Here’s a breakdown of the main categories of people who must file:

Based on Income Threshold:

• Basic Exemption Limit: Generally, individuals with a total income below a specified limit are exempt from filing ITRs. This limit varies based on age:
  • Below 60 years old: Rs. 3 lakhs (AY 2024-25)
  • 60 to 80 years old: Rs. 5 lakhs (AY 2024-25)
  • Above 80 years old: Rs. 5 lakhs (AY 2024-25)
  Note: Even if your income falls below this limit, you may still need to file an ITR in certain situations (explained below).

Other Situations Requiring ITR Filing:

• Exceeding Deduction Limits: If you claim deductions under various sections like Section 80C (investments), house rent allowance (HRA), etc., and your total income exceeds the basic exemption limit without these deductions, then ITR filing is mandatory.
• Business or Professional Income: If you have income from business (including freelancing) or a profession exceeding a certain limit (usually Rs. 10 lakh), you must file an ITR regardless of your total income.
• TDS/TCS Exceeds Limit: If Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) deducted on your income exceeds a specific amount (Rs. 25,000 or Rs. 50,000 for senior citizens), you need to file an ITR.
• Foreign Assets/Income: If you have any assets or income from outside India, you are required to file an ITR.
• Seeking Tax Refund: If you believe you’ve paid excess tax and are eligible for a refund, filing an ITR is necessary to claim it.
• Loss Carry Forward: If you have incurred business or capital losses in the current year and want to carry them forward to offset future income, you must file an ITR.

Remember: These are general guidelines. It’s advisable to consult a tax professional or refer to official Income Tax Department resources for a more precise understanding of your obligation to file an ITR based on your specific circumstances.

What happen if ITR not filled?

There can be several consequences for neglecting to file your Income Tax Return (ITR) in India. Here’s a breakdown of the potential repercussions:

Financial Penalties:

• Late Filing Penalty: You’ll be liable to pay a penalty for filing your ITR after the due date. The penalty amount can be:
  • Rs. 5,000 (maximum) for ITRs filed after the due date but before December 31st of the assessment year.
  • Rs. 10,000 (maximum) for ITRs filed after December 31st.
  • Reduced penalty (maximum Rs. 1,000) applies if your total income doesn’t exceed Rs. 5 lakh.
• Interest on Unpaid Tax: If you owe taxes and haven’t filed your ITR, you’ll be charged interest at a rate of 1% per month on the outstanding tax amount.

Loss of Benefits:

• Tax Refund Delay: You might miss out on receiving a tax refund you’re entitled to if you don’t file your ITR. Even after processing refunds, the government can withhold them if you haven’t filed.
• Loan Application Difficulties: When applying for loans (personal, education, car, etc.), lenders often require ITRs to assess your financial health. Not having a filed ITR can make loan approvals challenging.

Serious Repercussions:

• Department Scrutiny: The Income Tax Department may scrutinize your case more intensely if you haven’t filed your ITR. This can involve inquiries and potential tax assessments.
• Prosecution in Severe Cases: In extreme situations, particularly if you owe a significant amount of tax and deliberately avoid filing ITRs, you could face prosecution. This may involve imprisonment for a period ranging from 3 months to 7 years, along with a fine.

Remember: It’s always best to file your ITR on time to avoid these penalties and complications. Even if you believe you don’t owe any taxes, filing an ITR ensures you’re compliant and don’t miss out on potential benefits.

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