How to file ITR ( Income Tax Returns ) on ClearTax? – Income Tax E-filing Guide For FY 2019-20

FAQs (Frequently Asked Questions)

• Why income tax return filing is important?

  Income tax department has mandated to file the return to individuals only in case their income is above basic exemption limit or if they meet certain criteria like expenditure on foreign travel being more than Rs 2 lakh and electricity consumption of Rs 1 lakh or more, Deposited an amount/aggregate of an amount above Rs 1 crore in one or more current accounts in FY 2019-20, In the case of a resident whose asset is located outside India or has signing authority for an account-based outside India.It is always a good idea to file your ITR even if you are not eligible due to the benefits.

  • Filing of ITR creates a valid proof of income,
  • ITR is required for applying for any loan in the future
  • ITR is required by banks even for applying credit cards
  • ITR is required for VISA applications etc.

  Hence it is advisable to file ITR even if your income is below the basic exemption limit.
• What is income tax?

  Income tax is a direct tax on your income. It means a portion of your income is paid to the government. The government charges this amount for expenditure related to health, education , providing subsidy to agriculture , infrastructure etc. It is paid by an individual/HUF/any taxpayer depending on income levels or gains in a financial year. A company has to pay income tax irrespective of the level of income. The government passes laws prescribing the rate of taxation on your income from time to time.
• How to pay income tax online?

  You have to pay your taxes before filing your tax return. If you are a salaried individual, then most of your tax liability is deducted from your salary by your employer in the form of TDS and paid to the government on your behalf. In case you are liable to pay advance tax, then you have to pay 90% of it before the 31st of March every financial year. You can file your ITR once the financial year ends. The window to file ITR is generally open till the 31st of July of the relevant assessment year. However, the due date to file ITR may get extended, and the IT department will notify the same through notifications. It is always advisable to file your ITR within the due date. It’s worthwhile noting that you attract a late filing fee of Rs 5,000 on failing to file ITR within the due date of the assessment year.
• How to save income tax?

  There are many ways to save income tax by proper tax planning. Income tax Act provides certain deductions and exemptions that can be claimed which will reduce your total taxable income and reduce tax outflow. Below are some of the most common deductions and exemptions

  • Deduction upto Rs 1.5 lakh under 80C – Investment in tax saving options like 80 C- investing in ELSS , LIC, mutual funds, deduction for tuition fees for children, deduction for principal amount of home loan, etc
  • Additional deduction of Rs 50,000 above Rs 1.5 lakh in 80 CCC (1b) for contribution towards National pension schemes of the central government.
  • 80D allows deduction of medical insurance premium paid for self, spouse , children (Rs 25000 / 50,000 ) and dependent parents ( rs 25000 / 50,000)
  • 80G allows deduction for donation made to recognized institutions and trusts as per specified limits.
  • House rent allowance exemption allowed partially or fully under 10 (13A)
  • Deduction for higher education loan under 80E
  • Deduction for home loan paid under section 24 upto 2 lakhs for self occupied and full amount if rented property
• How to get income tax return copy online ?

  • Log on to incometaxindiaefiling.com with credentials
  • Click on View Returns/ Forms
  • Selection an option as “Income tax returns” and relevant assessment year and click on submit
  • A window displaying a list of ITR filed will open.
  • Click on ITR-V acknowledgement number you want to download
  • ITR V PDF file will open which can be downloaded.
• How to file an income tax return online?

  You can file your ITR return online either through the income tax e-filing portal or through ClearTax. If you wish to file the return through the government portal, then you have to file it using the “offline” mode or the “online” mode.

  1. In offline mode, you can log on to https://www.incometaxindiaefiling.gov.in/home and download the excel or java utilities of applicable ITR form from the tab download > ITR return preparation software. A ZIP file will get downloaded. Please extract the ZIP file and fill all the relevant fields in the utility. Remember to validate all the sheets and click on calculate tax. Then, generate and save the XML utility. The excel/Java utility is ready to be uploaded on the portal for efiling. Complete the verification of return amongst six options available and then submit the form.
  2. To file ITR through offline mode, log on to the e-filing portal using PAN, password and entering the captcha. Go to the “e-file” tab and open the “income tax return” link from the drop-down. Fill the relevant details and select “prepare and submit online” as the submission mode. Fill the details in the ITR form opened online. Click on “save as draft” to save the filled return online. Verify the return using Aadhaar OTP/EVC/or sending a physical copy at CPC. Finally submit the return.