How to Do Personal Tax Return Filing Online in India?

In the digital age, filing personal tax returns online has become the most credible and realistic means for an individual to furnish tax compliance. The Government of India has facilitated the functioning of personal tax return filing in India through the introduction of simple tax e-filing portals that help eliminate paperwork and errors. Be you an employee on a salary, a self-employed professional, or a freelancer, income tax return filing has now become just a matter of a few clicks.

A professional personal tax return filing company such as Services Plus will ensure accuracy and full compliance with the Income Tax Act while maximizing your eligible deductions and helping you avoid costly mistakes.

What is Personal Tax Return Filing?

Personal tax return filing online comprises the declaration of an individual's income, tax liabilities, deductions, and exemptions to the Income Tax Department for a specific financial year. This is for the purpose of the authorities assessing taxable income, i.e., to determine if any taxes are payable or if any refund is due to the taxpayer. In fact, online filing from Services plus will be much quicker and more transparent and can be accessed from any location in India or abroad.

Eligibility for a Personal Tax Return Filing in India

The following categories of taxpayers must file an income tax return:

Taxable income exceeds the basic exemption limit.

• For those Below 60 old—₹2,50,000 per annum.
• For those 60-80 years old, ₹300,000 per annum.
• For those Above 80 years old, ₹5,00,000 per annum.
• Also, if one has foreign income or holds assets abroad.
• Companies/firms also must file income tax returns, even if they have zero income.
• Where tax has been deducted at source under any section, and the person wants to claim a refund.
• Carry-forward of losses from the previous assessment years.

It is encouraged that voluntary personal tax return filing online should be performed, even if not required, because of its utility as financial proof while applying for a loan and travel visa.

Online Filing of Personal Tax Returns is Beneficial

• Convenience: Online, you can fill out your tax return at your own pace and from anywhere with Internet access.
  
  
• Saves Time: Online personal tax return filing in India is generally quicker, making conventional filing methods a waste of time in comparison.
  
  
• Error Avoidance: Most online platforms come with error detection systems to ensure that your return is one hundred percent error-free.
  
  
• Acknowledgment at Your Fingertips: You will get an acknowledgment immediately after filing your return online.
  
  
• Tracking Made Simpler: Once you file online, you can track your return's status, including the refund status.

Documentation Required for Personal Tax Return Filing Online

To file your personal tax return online, the following documents will be required:

• PAN Card: Your Permanent Account Number (PAN) is necessary for the filing of your return.
  
  
• Form 16: This is a certificate provided by your employer that contains information about your salary and tax deducted at source (TDS).
  
  
• Bank Statement: These are utilized for reporting interest income and other financial transactions.
  
  
• Proofs of Investments: Documents in support of investments eligible for tax deductions, such as life insurance premium, PPF contributions, etc.
  
  
• Proofs of Other Income: In cases of having income from sources like rental income or gaining profit through capital gains apart from salary, the relevant documents are to be produced.

Types of Taxation in Personal Tax Return Filing

In India, personal income tax is classified into different slabs based on income levels. Two major types of taxation are:

Old Tax Regime: Under this regime, the taxpayer could claim a lot of deductions and exemptions. The tax slabs are

• Up to ₹2.5 lakh: Nil
• From ₹2.5 lakh to ₹5 lakh: 5%
• From ₹5 lakh to ₹10 lakh: 20%
• Above ₹10 lakh: 30%

New Tax Regime: This was introduced in the Budget of 2020 whereby lower rates of tax were offered and many deductions/exemptions were withdrawn. The tax slabs are

• Up to ₹2.5 lakh: Nil
• From ₹2.5 lakh to ₹5 lakh: 5%
• From ₹5 lakh to ₹7.5 lakh: 10%
• From ₹7.5 lakh to ₹10 lakh: 15%
• From ₹10 lakh to ₹12.5 lakh: 20%
• From ₹12.5 lakh to ₹15 lakh: 25%
• Above ₹15 lakh: 30%

Taxpayers choose between them according to their standing.

Categories of Personal Income Tax for Filing in India

The Income Tax Department lays down various ITR (Income Tax Return) forms:

• ITR-1 (Sahaj)—For salaried persons with income up to ₹50 lakh.
• ITR-2—For individuals with income from capital gains, multiple properties, or foreign assets.
• ITR-3—For professionals and business owners.
• ITR-4 (Sugam)—For taxpayers under the presumptive income scheme.

The right choice of form means the right personal tax return filing online.

Acting Process for Personal Tax Return Filing Online

Step 1: 

Register/log in at the official Income Tax e-Filing portal.

Step 2: 

Select the Assessment Year and applicable ITR form.

Step 3: 

Fill in Personal Details—PAN, Aadhaar, contact & bank details.

Step 4: 

Declare Income Sources—salary, house property, capital gains, and other income.

Step 5: 

Claim Deductions—Under Sections 80C, 80D, etc.

Step 6: 

Cross-check Form 26AS for TDS credit.

Step 7: 

Calculate and pay the remaining tax, if any.

Step 8: 

Submit Return and E-Verify through Aadhaar OTP, net banking, or EVC.

Step 9: 

Download the ITR-V Acknowledgement for future reference.

Penalties for late or incorrect filing

Non-filing of personal tax returns within the given time frame in India comes with certain penalties:

• Late Fee—₹5,000 until December 31, ₹10,000 thereafter, and if one's income is less than ₹5 lakh, then a ₹1,000 fine.
  
  
• Interest on the unpaid tax amount—1% every month as under Section 234A.
  
  
• Carry Forward Losses Benefit—Losses cannot be offset against profits in the following years.

Scrutiny and notices could be sent by the income tax department.

Therefore, a proper layout for a professional for hiring a personal tax return filing company can rid him of those penalties.