Filing your Income Tax Return (ITR) in India is not only a legal requirement but also offers numerous benefits for taxpayers. Here’s a look at some major advantages:
Benefits of Filing ITR
- Claiming Tax Refunds: If you’ve paid more tax than required during the year through TDS or advance tax, filing an ITR allows you to claim a refund.
- Income and Address Verification: Your ITR serves as an official document verifying both your income and address, which can be useful for applying for loans, visas, or government tenders.
- Loan Applications: Banks and financial institutions often use ITRs to assess your financial status and creditworthiness during the loan application process. Timely filing of ITRs can facilitate smoother loan approvals.
- Utilize Loss Carryforward: By filing an ITR, you can carry forward business losses to offset against future income, potentially reducing your tax burden.
- Government Benefits: Certain government schemes and scholarship programs may require ITRs as proof of eligibility.
- Avoid Penalties: Failing to file your ITR or submitting it late can result in penalties imposed by the Income Tax Department.
- Promotes Transparency and Compliance: Filing your ITR fosters financial transparency and helps the government accurately track income and collect taxes.
Steps for Online Registration on the e-Filing Portal
The deadline for filing ITRs for the financial year 2023-24 (AY 2024-25) is approaching. Taxpayers must submit their returns by July 31, 2024.
With the emphasis on digital filing, registering on the e-filing portal is essential. You will need your Aadhaar card, PAN card, a valid mobile number, and a valid email ID.
Online Registration Guide
- Visit the homepage of the Income Tax department’s e-Filing portal.
- Provide required information such as PAN, name, date of birth, membership number, and enrollment date on the basic details page, then click “Continue.”
- If your PAN is not registered on the e-Filing Portal, an error message will be displayed.
- Enter necessary details such as your name, date of birth or incorporation, gender (if applicable), and residential status as per your PAN card, then click “Continue.”
- After authenticating your PAN, proceed to the Contact Details page.
- Provide your primary mobile number, email ID, and address. Then, click “Continue.”
- Two separate six-digit OTPs will be sent to the provided mobile number and email ID.
- Enter the OTPs and click “Continue.”
- Note that the OTPs are valid for 15 minutes, and you have three attempts to enter them correctly.
- Set your password on the “Set Password” screen and confirm it.
- Set a personalized message for the password and click “Register.”
- After successful registration, click “Proceed to Login” to initiate the login process.
Once the procedure is complete, update your profile information on the e-Filing portal to access all services. By following these steps, you can register on the e-filing portal and take advantage of the convenient online process for filing your ITR.
