The Central Board of Direct Taxes (CBDT) launched a new income tax e-filing mechanism on June 7, 2021. The new portal ‘www.incometax.gov.in‘ follows the previous e-filing portal ‘www.incometaxindiaefiling’.gov.in‘. Taxpayers now have to file their Income Tax Return (ITR) and all other tax-related transactions through the new process. For the convenience of taxpayers, the process is being amended to facilitate seamless filing of modern income tax returns and other tax-related transactions.
Features of new income tax e-filing portal
ITR Processing: The new user-friendly portal will instantly process taxpayers’ income tax return. This allows for faster refunds to taxpayers.
Free ITR preparation Software: Taxpayers can avail free ITR preparation software – Excel-based as well as Java based utilities. Considering the changes in ITR forms from year to year, the department releases specific ITR forms for each financial year. Taxpayers can prepare the return by downloading the ITR preparation software or prepare and submit it online right in the website. Interactive questions in the software will facilitate the e-filing process.
Call Center Services: The new website has been added to the ‘New Call Centre’ to answer questions immediately. Additionally, FAQs, tutorials, videos, and extensive chatbot/live agents handle taxpayer information.
Single dashboard transactions: The taxpayer can view transactions, uploads and pending actions all in a single dashboard with follow-up action
Multiple payment methods: The new portal offers taxpayers multiple payment methods. These options include RTGS/ NEFT, credit card, UPI, and net banking from each taxpayer’s account at each bank. This simplified the payment of taxes. Click here to know how to pay tax through Income Tax Portal.
Mobile Application: The Income Tax Department has launched the Income Tax Bridge application which helps taxpayers understand taxes and provides solutions to their many queries. The app was launched in July 2017. The app offers features like Bisa IT (answers to your questions), Tax Accounting Tools, Apply PAN online, Pay your taxes online.
Pre-filled ITRs : The new portal allows pre-filling of certain information related to certain income. These can cover wages, household assets, job/occupation, etc. Furthermore, they allow you to pre-set details of wage income, interest, dividends and capital gains. The pre-filling will happen once the TDS and SFT details are uploaded by the concerned companies.
Annual Information Statement (AIS): This form provides information about the taxpayer disclosed in 26AS. Taxpayers can comment on the information disclosed in the AIS. The AIS shows the value reported under each category (i.e. TDS, SFT, and other information) and the adjusted value (i.e. the value after consideration of taxpayer input).
National Faceless Appeal Center (NFAC): Formed to implement the system and facilitate the disposal of e-appeal cases anywhere. This includes appeals to the Income Tax Commissioners (Appeals) Units through the Automated Appropriation System.
Electronic Verification: Taxpayers can verify their return electronically using methods like Aadhaar OTP, Net Banking, or Digital Signature.
Interaction with Income Tax Department: Taxpayers can get information, updates and interaction with Income Tax Department through the portal. Reports, such as replies/deliveries and orders, are available within the income tax loophole, without having to follow up with income tax authorities.
Validate the bank account first to get an income tax refund: When you file ITRs, the income tax department will verify and process the refund, if any. Such refunds are now transferred electronically to your bank account linked to your PAN.
Features of Old Tax Filing E-Filing Portal
The Department developed the Income Tax e-filing portal www.incometaxidiaefiling.gov.in to provide e-filing related services to taxpayers. Users use the existing Income Tax e-filing portal to file their income tax returns and other documents. Apart from filing income tax, the following can be done on the portal.
- E-verification of income tax returns.
- Identify and respond to unpaid income taxes.
- File audit reports and certificates.
- See Tax Return (Form 26AS).
- Look at the tax inconsistencies.
- Resubmit a refund request.
- Ask for signs.
- Request for amendment of ITR details.
- Use Aadhaar and PAN ho.
- Filing complaints online.
- Give your feedback on the e-process.
The Tax Department uses the portal to further process income tax attachments and other documents, issue notices, receive taxpayer responses, issue final orders such as investigations, appeals, and exclusions interact with penalties.
Update Taxpayers
- Re-register their Digital Signature Certificate (DSC) because the old registered DSC was not migrated due to security concerns.
- They are encouraged to update the user ID and mobile number under Primary Contact in their profile,
- Prevalidate bank accounts with Aadhaar linked if not done before.
- Reset the e-filing vault high security options.
Advantages of e-Filing Income Tax Return
Certain activities benefit greatly from the filing of income tax returns. Moreover, those who file income tax returns find it simple at every step of the way, whether it’s qualifying for a loan, traveling overseas, or coping with financial losses.
Following is the list of benefits of efiling Income Tax Returns. It includes:
Credit card
You will grab certain benefits of a credit card. Also, credit card providers want to know if the credit card application will be able to repay the debt. In addition, the income tax return is a document that details a person’s earnings. You might not be able to receive a larger credit limit if you don’t have your tax returns.
Loans
Banks will require you to provide tax returns for the previous several years as part of the documentation for any loan. Further, the returns will be used to figure out where you stand financially. Your application may be rejected if you do not have any returns.
Refund
Tax Deducted at Source (TDAS) deducts a portion of a taxpayer’s income, whether they are salaried or self-employed (TDS). However, if you have made investments that are tax-deductible. Then, your real tax dues as determined by your income tax bracket may be significantly lower than what you have previously paid. Only if you file your taxes can you claim and get a refund for the extra tax you paid.
Loss adjustment
An individual can carry forward losses to offset future taxable income under current tax legislation. Moreover, this can be repeated for up to eight years in a row. In addition, you can use your income tax returns to create a case and carry forward/adjust your losses against future taxable income if you have them.
Visa
Most countries require a visa for international travel. Note that: As an Indian citizen, you must have filed your tax returns within the last several years in order to obtain your visa. These returns must be shown to officials from the embassy or consulate of the destination country.
Conclusion
E-file income tax returns— definitely a great idea. And, we hope this guide has been helpful in understanding and becoming familiar with all aspects of e-filing.
Now having reached the end of this extensive guide. We have summarized all the important features for your reference. Let’s learn:
e-file Income Tax returns through online mode is very easy and fast.
The e-filing process involves three processes — digital signature certificate (DSC), verification of Aadhaar number, and reconciliation of the ITR-V form.
A step-by-step guide to help you file your income tax return: gather all your documents, download Form 26AS, check for errors, calculate your total income for the financial year, calculate your tax liability paid, final tax due Create the account( if any) , after paying all your taxes, ITR verification, e-verification, tax processing and submit your income tax return.
Income Tax Return Benefits of E-Filing— Credit card, loan, refund, loss adjustment, visa.
The taxable income of permanent citizens is Rs. 5 lakh is eligible for full refund. 12,500 under Section 87A.
The forms approved by the Tax Department are known as Income Tax Forms. Includes— ITR 1(SAHAJ), ITR 2, ITR 3, ITR 4 (SUGAM), ITR 5, ITR 6, ITR