Free ITR E-Filing Site Online: Income Tax Return filing Benefits, Penalty and Loss

Income Tax Return or ITR in layman's terms is informing the Income Tax Department of India about your income and taxes to be paid on it during the financial year. The process is now fairly easier as compared to when it was done manually. It can be done quickly with the Income Tax Department of India's free ITR e-filling site online.

Although, the taxes are levied if your total income in a financial year is greater than Rs.5 lakhs, it is advised even for those below this income bracket to also file ITR due to the various Income Tax Return benefits – plus, one might have had paid indirect taxes throughout the year, which can be retrieved in ITR filing.

Deadline for ITR filing for AY 2022-23 — July 31^st — is drawing close, with only four days left. If one misses the deadline, the government imposes penalties and even legal actions, in some scenarios.

Read more to find about the free ITR E-filing site online, income tax return benefits, deadline of ITR filing, and income tax return penalty and loss.

Income Tax Return Last Date

The last date for income tax return for AY 2022-23 is July 23, 2022 for salaried employees and cases with no-audits required.

How to File ITR on the Income Tax Website

Step 1: Visit the official Income Tax Return website – https://eportal.incometax.gov.in/

Step 2: Login using PAN/Aadhaar. Alternatively, you can also use your bank's Net Banking credentials to login through the bank portal.

Step3: Click on ‘Income Tax Returns'  and click on ‘File Income Tax Return' option from the dropdown.

Step 4: Select Mode of Filing, Relevant Assessment Year, ITR Type

Step 5: Follow all instructions. And select the correct ITR form out of the seven depending on your income.

ITR 1 or Sahaj: For individuals with total income below Rs. 50 lakhs in a financial year below ₹ 50 lakh. This includes income from salary/ pension, gains from one house property (this excludes cases where loss is brought forward from the previous financial year), income from other sources (winning a lottery and race house is excluded), and income from agriculture activities does not exceed  Rs. 5,000.

ITR 2: For individuals and Hindu Undivided Family (HUF) whose total income in a financial year from the aforementioned sources exceeds  Rs. 50 lakhs.

ITR 3:For individuals or HUF whose source of income is generated from business or profession.

ITR 4: ForIndividuals, HUFs and partnerships firms (other than LLPs) and residents of India whose income includes business earnings as per the presumptive income scheme under Section 44 AD/44 AE, professional earning as per the presumptive income scheme under Section 44 ADA and income from salary/pension not exceeding  Rs. 50 lakhs.

ITR 5: For firms, limited liability partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Person (AJP), the estate of deceased, the estate of insolvent, business trust and investment fund.

ITR 6: For companies that claim tax exemption under Section 11. This section is for income earned from property held for charitable trusts and religious institutes. IT can be filed electronically only.

ITR 7: For individuals and companies that are required to file tax returns under the following sections: 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) and 139 (4F).

Step 6: Validate pre-filled return. This will have all the details provided by your employer to the tax department through Form 16.

Step 7: Edit Pre-filled return if required and submit.

Step 8: Verify your ITR via EVR or ITR-V and wait for the refunds (if any)

EVC Verification of ITR

Instead of the physical submission of ITR-V, taxpayers can also opt for electronic verification via electronic verification code (EVC) in the following six ways-

1. EVC generation using email id and mobile number
2. EVC generation using Aadhaar card
3. EVC generation using net banking
4. EVC generation using ATM
5. EVC generation using bank account details
6. EVC generation using a Demat account

How to Download Your Income Tax Return Verification Form?

ITR-V a.k.a. Income Tax Return Verification or ITRV acknowledgement is the acknowledgement issued by the I.T. department generates the taxpayers to verify the legitimacy of their e-filing. It is applicable only to those who file without a digital signature. You can easily download it with the following steps.

Step 1: Go to the income tax India website at www.incometax.gov.in and log in.

Step 2. Select the ‘e-File'>'Income Tax Returns'>'View Filed Returns' option to see e-filed tax returns.

Step 3. To download ITR-V click on the ‘Download Form' button of the relevant assessment year.

If you have not e-verified your income tax return-after downloading ITR-V, print, sign and send this document to CPC Bangalore within 120 days from the date of e-filing.

Guidelines for ITR-V Acknowledgement

• ITR-V should be printed in dark blank ink and clear to read.
• ITR-V should have an original signature in blue ink.
• Do not sign on the barcode of the Form. Barcode and numbers below the barcode should be clearly visible.
• Do not use stapler on your ITR-V form.
• Do not fold the signed ITR-V.
• Enclose the ITR-V form in an A-4 size white envelope.
• Send ITR-V to the CPC address via speed post or ordinary post within 120 days from the date of filing.

Benefits of Filing Income Tax Return

• It helps in easy approval of loans from financial institutions
• It helps in carrying forward losses to the next fiscal year, if done on time.
• It helps in quicker visa processing since many foreign embassies demand ITR history while applying for visas.
• ITR also acts as a legal document which can be used as an identity proof and income proof.
• It helps in avoiding penalties and legal punishments that can be levied by the government if ITR isn't filed.  

What Are the Reasons to File Income Tax Return on Time?

• It helps in avoiding penalties, fines, and even legal actions.
• Any delay beyond the deadline often attracts more interest on the tax due, per Section 234A of the Income Tax Act of 1961.
• It enables the taxpayers to carry forward their losses, to the nest fiscal year which cannot be done in case of belated ITR.

Income Tax Return Penalty and Fines

In case of belated ITR – i.e. if you miss the deadline – a fine of Rs. 5,000 is levied under section 234F of the Income-tax Act, 1961. However, taxpayers with total income up to Rs.5 lakh, are charge with a fine of no more than Rs 1,000. This fee must be deposited before the belated ITR is filed.

Income Tax Return Legal Action

The Income Tax department may send a notice if there is a delay or failure in ITR filing. A court case can follow next if the IT department is dissatisfied with the notice's response.