Navigating the Digital Tax Maze: A step-by-step guidance of filing online Income Tax Return in Pune

Welcome everyone to the digital age of taxation, where the inconvenient process of filing Income Tax Returns (ITR) has been more efficient and made more comprehensive than ever. Pune, a city of innovation and technological advancements, embraces the convince of online tax filing with open arms. As the financial hub of Maharashtra, Pune houses several entrepreneurs and professionals who diligently fulfil their civic duty of filing their ITR appropriately. In this comprehensive guide, we provide the online filing of Income Tax Return in Pune. We are empowering you with the knowledge and confidence to navigate the virtual tax landscape effortlessly. Thus, grab your digital devices and embark on this enlightening journey as we uncover the secrets to successfully filing your ITR in Pune.

What do you mean by Income Tax Return?

An Income Tax Return is a document that businesses, individuals, and other entities are needed to file with the tax authorities. Such as Income tax department, deductions, report their income, and taxes owed or refunded for a specific financial year. It is a declaration of the taxpayer’s whole income earned in the year and corresponding tax liability or refund.

By filing an ITR, taxpayers fulfil their legal obligation to report their income and pay taxes. The tax return also serves as a basis for the tax authorities to ensure compliance with tax regulations and to initiate any necessary audits or investigations. The income tax return is typically accompanied by supporting documents, such as Form 16 (provided by the employer), bank statements, investment proofs, and other relevant financial records, to substantiate the reported income, deductions, and taxes paid.

The purpose of filing an ITR is to enable the tax authorities to assess the taxpayer’s income, verify the accuracy of tax calculations, and determine the tax liability or refund owed. The tax return provides detailed information about various sources of income. Such as salary, business profits, capital gains, rental income, and other forms of income, along with the applicable deductions, exemptions, and tax credits.

Eligibility criteria for online filing of Income Tax Return in Pune

The eligibility criteria for online filing of income tax returns in Pune are the same as those applicable across India. To file your income tax return online, you need to meet the following eligibility criteria:

• Resident Individual: You must be a resident of India to be eligible for online filing of income tax returns. Non-residents, such as NRIs (Non-Resident Indians) or individuals qualifying as Resident but Not Ordinarily Resident (RNOR), have different tax filing requirements.
• Income Threshold: Your total income during the financial year must exceed the basic exemption limit to be eligible for filing income tax returns. The exemption limit varies based on your age and residential status. For example, for the financial year 2022-2023, the basic exemption limits were:
  • Individuals below 60 years of age: ₹2.50 lakhs
  • Individuals between 60 and 80 years (senior citizens): ₹3 lakhs
  • Individuals above 80 years (super senior citizens): ₹5 lakhs
• Income Sources: You are eligible for online filing of income tax returns if you have income from any of the following sources:
  • Salary and wages
  • Income from business or profession
  • Rental income from properties
  • Capital gains from the sale of assets
  • Income from investments, such as interest, dividends, or gains from mutual funds, stocks, etc.
  • Income from other sources, including lottery winnings, gifts, etc.
• Tax Refund: If you are eligible for a tax refund due to excess tax deducted or paid, you can file your income tax return online to claim the refund.
• Mandatory Filing: You are required to file an income tax return online if you fall under certain mandatory filing categories, such as:
  • Holding foreign assets or income
  • Undertaking specific financial transactions, as defined by the Income Tax Act, 1961
  • Being a company or partnership firm, regardless of income or loss

Documents required for online filing of Income Tax Return in Pune

During filing an online ITR in Pune, you will need to gather the following documents and information:

• PAN (Permanent Account Number) card
• Aadhaar card
• Form 16: Form 16 is a certificate provided by your employer that summarizes your salary details, tax deductions, and TDS (Tax Deducted at Source) for the financial year. It is crucial for accurately reporting your income.
• Form 26AS: Form 26AS is a consolidated statement that displays details of tax credits associated with your PAN. It includes TDS deducted by employers, banks, and other deductors. You can download this form from the income tax e-filing portal.
• Bank statements: Gather bank statements for the financial year, which will help you cross-verify your income, expenses, interest earned, and other financial transactions.
• Investment proofs: If you have made investments in instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), Fixed Deposits (FDs), or Equity-Linked Saving Schemes (ELSS), gather the necessary investment proofs.
• Property details: If you own property, you will need relevant documents such as the property purchase agreement, home loan details, rental income, or any capital gains related to the property.
• Details of other income: If you have additional sources of income, such as freelance work, rental income, or income from investments, gather the relevant details and supporting documents.
• Deduction proofs: Ensure you have the necessary documents to claim deductions under various sections of the Income Tax Act, 1961 such as Section 80C (for investments in specified instruments), Section 80D (for health insurance premiums), and Section 80G (for donations made to eligible charities).
• Previous year’s tax return: Having a copy of your previous year’s income tax return can be helpful for reference and ensuring consistency in reporting

Step-by-step procedure for filing online Income Tax Return in Pune

To file your income tax return online in Pune, you can follow these steps:

• Collect all the necessary documents and information required to file your income tax return.
• Register on the income tax e-filing portal: Visit the official website of the Income Tax Department of India and register yourself on the e-filing portal if you haven’t done so already. You will need to provide your PAN, name, date of birth, and other relevant details during the registration process.
• Log in to your account: Once registered, log in to your account using your PAN as the user ID, along with the password you set during the registration process.
• Select the appropriate income tax return form: On the portal’s dashboard, click on the “e-File” tab and select “Income Tax Return” from the drop-down menu. Choose the assessment year for which you want to file the return.
• Fill in the required details: Fill in the relevant details in the income tax return form. The form will ask for information such as your details, income details, deductions, and taxes paid. Ensure that you enter accurate information.
• Verify your return: Once you have filled in all the necessary details, review the information provided. Make sure everything is accurate and double-check for any errors or omissions. After verification, save the form.
• Generate the XML file: After saving the form, click on the “Generate XML” button. This will create an XML file of your income tax return.
• Upload the XML file: Go back to the e-filing portal and log in again if necessary. On the dashboard, click on the “Upload Return” button and select the XML file you generated in the previous step. Upload the file and wait for it to be processed.
• E-verify your return: After uploading the XML file, you will have the option to e-verify your return. There are several methods available for e-verification, such as using Aadhaar OTP, net banking, bank account-based validation, or sending a physical signed copy to the Centralized Processing Centre (CPC).
• Complete the verification process: Follow the instructions for the chosen e-verification method to complete the process. Once your return is successfully verified, you will receive an acknowledgement (ITR-V) via email.
• Send ITR-V to CPC (if applicable): If you chose the physical verification method, print out the ITR-V form and sign it. Send the signed ITR-V to the address mentioned on the form within 120 days of e-verification.

Who can file Income Tax Returns in Pune?

Here are the different categories of individuals and entities that can file ITR in Pune:

• Individuals: Any resident individual, including salaried employees, self-employed individuals, freelancers, professionals, and pensioners, who meet the eligibility criteria and have taxable income or fall under any of the mandatory filing categories, can file income tax returns in Pune.
• Hindu Undivided Family (HUF): HUFs are considered separate taxable entities under the Income Tax Act, 1961. HUFs can earn income from various sources, such as business, investments, or property, and are required to file income tax returns in Pune if they meet the eligibility criteria.
• Partnership Firms: Partnership firms are entities formed by two or more individuals who carry out business together intending to earn profits. Partnership firms are required to file income tax returns in Pune, regardless of their income or loss during the financial year.
• Limited Liability Partnership (LLP): LLP is a legal structure that combines the features of a partnership and a corporation. LLPs are required to file ITR in Pune, irrespective of their income or loss during the financial year.
• Companies: Companies registered under the Companies Act, 2013 including private limited companies, public limited companies, and one-person companies, are required to file income tax returns in Pune, regardless of their income or loss during the financial year.
• Trusts and Charitable Institutions: Trusts and charitable institutions, such as religious or educational institutions, are required to file income tax returns in Pune if they earn income and meet the eligibility criteria.

Benefits of filing Income Tax Return online in Pune

Filing ITR online in Pune offers several benefits compared to traditional paper filing. Here are some of the advantages of online filing:

• Convenience: Online filing provides the convenience of submitting your income tax return from anywhere, anytime, as long as you have access to the internet. You can file your returns without visiting any physical tax offices, saving time and effort.
• Time Efficiency: Online filing eliminates the need for manual paperwork and physical submission, saving considerable time in the process. You can complete the filing quickly, as the online platforms provide step-by-step guidance and pre-filled forms that simplify the process.
• Accuracy and Error Reduction: Online filing platforms offer in-built validations and calculations that minimize errors and inconsistencies in your return. The system automatically checks for errors, omissions, or mismatches in the data, reducing the chances of making mistakes.
• Quick Processing and Refunds: Online filing expedites the processing of your ITR. Once submitted, the return is processed faster, which can lead to quicker refunds if you are eligible for a refund. You can also track the status of your return online.
• Digital Recordkeeping: Online filing allows you to maintain a digital record of your income tax returns. You can easily access and retrieve past returns whenever needed, providing a secure and organized way to manage your tax-related documents.
• E-Verification Options: Online filing provides multiple options for e-verification of your return, such as Aadhaar OTP, net banking, or bank account-based validation. These methods eliminate the need for physically signing and sending physical documents, simplifying the verification process.

Takeaway

Filing income tax returns online in Pune has revolutionized the way individuals and entities fulfil their tax obligations. The digital era has brought forth a host of benefits, making the process more convenient, efficient, and error-free. By embracing online filing, taxpayers in Pune can experience a seamless and hassle-free journey towards compliance. The convenience of filing from anywhere, at any time, coupled with the time-saving features of pre-filled forms and in-built validations, ensures accuracy and reduces the chances of errors. The quick processing of returns leads to faster refunds, if eligible, and the ability to track the status of filings online provides peace of mind.