How to file your Income-tax returns?

In order to file an Income tax return, you need to first register yourself on the e-filing website of the income tax department and:

1. Collect required documents such as TDS certificates (Form16/16A) and capital gains statements.
2. You need to download and check Form 26AS.
3. Then rectify the errors in Form 26AS, if any.
4. And then compute total income for the financial year.

You need to login into the e-filing website with your User ID, Password, Date of Birth / Date of Incorporation and enter Captcha. Then go to e-File and click on “Prepare and Submit ITR Online”. Then select the Income Tax Return Form ITR 1/ITR 4S and your Assessment Year. Then fill in the details and click the “Submit” button. 

What is the process of filing a Tax Return?

You first need to download the Income Tax Return preparation software for the relevant assessment year in your PC / Laptop from the “Downloads” page.

Prepare your Return using the Downloaded software for which you need to gather all the information regarding your income, tax payments, deductions, etc.

Then you need to Pre-populate the personal details and tax payments /TDS by clicking on the ‘Pre-fill’ button. You need to compare the information that you have to ensure nothing is left out.

Then Enter all data and click on ‘Calculate’ for computing the tax and interest liability to have the final figure of Refund or Tax payable

If Tax is payable remember to pay immediately and enter the details in an appropriate schedule. Repeat the above steps so that tax payable becomes zero. 

You then need to generate and save the Income Tax Return data in XML format in the desired path/place on your PC/Laptop.

Then login into the e-Filing website with your User ID, password, Date of Birth /Date of Incorporation and enter the Captcha code.

The Supreme Court of India in its recent judgment Sasi Enterprises V Assistant Commissioner of Income Tax (criminal appeal No.61/2007) has categorically declared it is taxpayer’s liability to file a tax return and non-filing of the tax return is an action liable for prosecution. If the taxpayer does not pay the income tax return voluntarily as under Section 139 of the income tax act and does not pay even after issuing of notice as u/s 142 an148 of the Income tax act then the taxpayer can be prosecuted u/s 276CC of the Income Tax Act. This judgment by the Supreme Court is the firm reminder that the laws should not be seen as an empty formality and should be attended diligently. The Supreme Court has also held that in case prosecution proceedings are initiated, taxpayers have to prove the circumstances which prevented them from filing the I-T returns and also failing to prove they are liable for prosecution and penalty. The burden as to prove that individual has not willfully exempted from filing the I-T return is on the Taxpayers altogether.

Legal consequences of not filing the Income Tax returns

The individual if does not pay the Income tax than the individual may be subject to some penalties and Interest. The Income Tax office on the failure to pay taxes issues a notice u/s 142 (1) as and when it deems fit to the office. Further, if the individual fails to furnish his income tax returns after the notice he will be penalized for the same. If there are any taxes which are unpaid, penal interest as per u/s 234A i.e. @ 1% per month or part thereof will be charged till the date of payment of taxes. Also Penalty of Rs. 5,000 may be charged. The penalty is not levied in all cases and depends upon the circumstances of the case.