Easiest Way of Tax eFiling & Tax Saving in India

Income Tax E-Filing with ClearTax

  • The easiest option for first-time e-filers.
  • The ClearTax platform automatically detects the ITR you need to file on the basis of your income sources.
  • Upload your Form 16, and ClearTax auto-prepares your income tax return.
  • You can file your return directly from ClearTax without logging into the income tax website.
  • Useful tips to help you with filling up the information.
Efiling Tax return
  1. What is efiling of income tax return?
  2. Am I required to file an income tax return?
  3. What is the difference between AY and FY?
  4. How much tax should I pay?
  5. Has e filing tax returns for 2021 started?
  6. What is the due date for filing a tax return?
  7. Should I e-file returns if I earned less than taxable income?
  8. How can I go about e-filing multiple tax returns?
  9. I have a Form 16, how do I e-file my income tax return?
  10. How can I file ITR if I don’t have a Form 16?
  11. How do I check the status of my ITR-V ?
  12. How to recover your income tax e-filing password?
  13. If I fail to furnish my return within the due date, will I be fined or penalized?
  14. Which ITR form to file in case of presumptive income?
  15. Can a company of professionals say lawyers can file ITR 4 for presumptive income?
  16. Do I need to report exempt dividend income from shares/mutual funds in ITR Form 1?
  17. I have income from salary more than Rs 50 lakhs.Which form I need to file?.Also is there any requirement to disclose details of assets held by the taxpayer in the IT?
  18. Who can file the return in paper form (offline)?
  19. There are various deductions that are not reflected in the Form 16 issued by the employer. Can I claim them on my return?
  20. Other common FAQs for e filing.

1. What is efiling of income tax return?

E-filing or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way, where you go the Income Tax Department’s office to physically file your returns. The other way is when you e-file through the internet. Over the past few years, e-filing has become popular because it is easier, doesn’t require prints of documents, and can be done for free!

2. Am I required to file an income tax return?

It is mandatory to file income tax returns in India if any of the below conditions are applicable to you (as per the Income Tax Act):

  • Individual Earns annual income more than below exemption limit-
    Particulars Amount
    For individuals below 60 years Rs 2.5 Lakhs
    For individuals above 60 years but below 80 years Rs 3.0 Lakhs
    For individuals above 80 years Rs 5.0 Lakhs
  • Individual has incurred more than Rs 2 lakh of expenditure in foriegn travel on self or any other person.
  • Individual has deposited an amount equal to or more than Rs 1 crore in one or more current accounts maintained with any bank.
  • Individual has incurred an expenditure on electricity bill of more than Rs 1 lakh in single bill on aggregate basis in a given financial year.
  • Individual has an income from foreign countries or has assets in foreign countries or has a signing authority in any account outside india.
  • If gross total income before claiming exemption on capital gains from section 54 to 54GB is more than basic exemption limit.
  • Want to claim income tax refund from the department.
  • Company or a firm, irrespective of profit or loss.

3. What is the difference between AY and FY?

Financial Year is the period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.

For example, if your financial year is from 1 April, 2019 to 31 March 2020, then it is known as FY 2019-20. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2020 until 31 March 2021.(AY 2020-21)

What is Financial year?

4. How much tax should I pay?

Want to check how much income tax you’ll pay or see how deductions affect the income tax you owe? Use the income tax calculator to calculate your tax liability for the last 3 financial years.

Check Your Payable Income Tax

5. Has e filing tax returns for 2021 started?

Efiling income tax returns for the assessment year 2021-22, which is the financial year 2020-21 has not yet started. Please note that the return filing starts after the end of the financial year. The due date of ITR filing for individual taxpayers is usually 31st July of the assessment year i.e 31st july 2021 for AY 2021-22. Hence one can start filing their ITR from 1st March 2021 till the due date 31st July 2021 unless further extended by the income tax department.

6. What is the due date for filing a tax return?

The due date of ITR filing for individual taxpayers is usually 31st July of the assessment year i.e 31st July 2021 for AY 2021-22. Hence one can start filing their ITR from 1st March 2021 till the due date 31st July 2021 unless further extended by the income tax department. You can e-file your tax returns any time before then, but it is always better to e-file early to avoid the rush and heavy website traffic in the last month.
File Income Tax return

7. Should I e-file returns if I earned less than taxable income?

Yes, it is advisable to e-file your income tax returns even if you don’t pay taxes. A zero-return filing will be helpful when you need to get your tax refund or apply for a loan or visa.

8. How can I go about e-filing multiple tax returns?

You don’t need to open different accounts on ClearTax to e-file multiple tax returns. You can e-file for returns for the current, as well as the previous year from the same account. What’s more? You can even e-file tax returns for your friends and family from your own ClearTax account. Here’s how.

9. I have a Form 16, how do I e-file my income tax return?

  1. Upload your Form 16.
  2. ClearTax automatically prepares your ITR.
  3. Verify your tax summary.
  4. E-file your tax return to receive acknowledgement number.
  5. E-verify your tax return through net-banking.

10. How can I file ITR if I don’t have a Form 16?

  1. Enter your income details.
  2. Declare investments made under Section 80C.
  3. Cleartax auto-detects the relevant ITR Form for you.
  4. Verify your tax summary.
  5. E-file your tax return to receive acknowledgement number.
  6. E-Verify your tax return through net-banking.

11. How do I check the status of my ITR-V ?

After successfully submitting your income tax return, you get an acknowledgement from the IT department called the ITR-V or Income Tax Return-Verification. You receive a mail on your registered e-mail ID from the Income Tax Department containing the ITR-V.

Check Your ITR-V Status

12. How to recover your income tax e-filing password?

So you’ve lost access to your Income Tax Department account because you don’t have the password, and you’re afraid you won’t be able to e-file or access it again?

Don’t worry because ClearTax can help you out.

You can reset your Income Tax Department password by sending an email to validate@incometaxindia.gov.in with the following details:

1. PAN
2. PAN holder’s name
3. Date of birth
4. Father’s name
5. Registered PAN address

It is recommended to link your PAN with Aadhaar and mention it in your IT returns. If you have applied for Aadhaar, you can mention the enrollment number in your returns.

Click here to read our guide on ‘How to apply for Aadhaar Card’

Click here to read our guide on ‘How to link Aadhaar Card with PAN’

13. If I fail to furnish my return within the due date, will I be fined or penalized?

In general, a late filing fee of Rs. 5000 if return is furnished after 31 July but on or before the 31st day of December of the assessment year.For a late filing beyond 31 December, a late fee of Rs. 10,000 should be paid for filing until 31 March 2021. However, if the total income does not exceed Rs 5 lakh, the late filing fee shall not exceed Rs. 1000 for filing until 31 March (end of the assessment year).

14. Which ITR form to file in case of presumptive income?

An resident individual can file ITR-4 to report presumptive income under section 44AD and section 44ADA:

  • A doctor or engineer can opt for a presumptive income scheme u/s 44ADA if his gross receipts don’t exceed Rs 50 lakhs and can declare 50% of gross receipts as his income.
  • Persons engaged in the accountancy profession, Interior decoration, Technical consultancy can also for this scheme.
  • Freelancers engaged in the above profession can also opt for this scheme if their gross receipts don’t exceed Rs 50 lakhs.
  • Businessmen having turnover less than Rs 2 crore may opt for the scheme u/s 44AD and declare the profits at 8% of gross receipts(6% in case of digital receipts)
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    15. Can a company of professionals say lawyers can file ITR 4 for presumptive income?

    No. only Individuals, proprietors, HUF, partnerships can. Companies, AOP, BOI, limited liability partnerships cannot file ITR 4.For more details click Which ITR to file.

    16. Do I need to report exempt dividend income from shares/mutual funds in ITR Form 1?

    Yes, until AY 2020-21 dividend income was exempt in the hands of the investor. However, from 1st April 2020, the same was made taxable. Hence,if you have earned dividend income prior to 1st April 2020 then you have to report the same in your ITR. If you are filing ITR1, please input the details under Part D –computation of tax payable, under the exempt income section.If the dividend is received from Indian company, it should be reported under section 10(34) and if the dividend is received from mutual funds, it can be reported under the head “others” given under exempt income.

    17. I have income from salary more than Rs 50 lakhs.Which form I need to file?.Also is there any requirement to disclose details of assets held by the taxpayer in the IT?

    In case of income from salary more than Rs 50 lakhs, ITR 2 will be applicable. ITR 1 is applicable only if income is less than Rs 50 lakhs. Yes there is a requirement to disclose the details of assets held by the taxpayer in the ITR if the income of the taxpayer is more than Rs 50 lakhs. All the assets held by the taxpayer and corresponding liabilities is required to be disclosed in Schedule AL of the ITR form.

    18. Who can file the return in paper form (offline)?

    Only Individuals who are of the age 80 years or more at any time during the financial year who need to report income in ITR-1 or ITR-4.

    19. There are various deductions that are not reflected in the Form 16 issued by the employer. Can I claim them on my return?

    Yes. Various deductions under Section 80C such as investment in ELSS, PPF, LIC premium payments, health insurance payments, investment in NSC, Children tuition fees paid, five-year tax saver fixed deposit, donation for charity, repayment of home loan etc., can be claimed in ITR even if not mentioned in Form 16. You can also claim HRA (if you are paying the rent and it is a part of your salary structure) in ITR. It may happen that you miss to give the proof of rent receipts to your employer and so he did not give you the tax exemption for HRA in Form 16. But don’t worry , you can claim them in your ITR.

    Frequently Asked Questions ( FAQ’s )

    • If I fail to furnish my return within the due date, will I be fined or penalized?

      1.Rs. 5000 if return is furnished on or before the 31st day of December of the assessment year i.e. for FY 2018-19, assessment year will be 2019-20 and so the relevant date will be 31st dec, 2019.
      2. Rs. 10,000 in any other case.However, late filing fee shall not exceed Rs. 1000 if the total income of an assessee does not exceed Rs. 5 lakhs

    • Do I need to report exempt LTCG in ITR-1?

      Yes. In ITR1, under Part D – computation of tax payable, there is a column for exempt income. In this column, you have to report your exempt LTCG.If the LTCG is from sale of equity shares, you can mention it in the column given for “Sec10(38)”.For any other LTCG, mention it under the head “others” given under exempt income. To know more, you can read our article on ITR1.

    • How to report Cash deposits during demonetization period in ITR1? How to report bank accounts in ITR-1?

      You have to mention the detail of all the savings and current accounts held by you at any time during the financial year for which you are filing the return. So if you are filing the return for FY 2016-17, then mention the detail of all the saving and current accounts held at any time during FY 2016-17.Please indicate the bank account in which you would like to get the refund credited irrespective of whether you have refund or not. The account number should be as per the core banking solution (CBS) of the bank. Also the amount of cash deposited during 09.11.2016 to 30.12.2016 in the said bank accounts should also be filled. In case the cash is deposited during 09.11.2016 to 30.12.2016 in any account other than the saving and current account (viz. loan accounts etc), then the details of such accounts indicating the cash deposited in the said account during the said period should also be provided. For instance if you have deposited the cash in your friend or relative bank account as a loan to him, the details regarding such bank account number, name of the person in whose bank account cash is deposited should also be reported It may be noted that details of cash deposited are to be provided only if the aggregate amount of cash deposited during 09.11.2016 to 30.12.2016 is Rs 2 lakhs or more.

    • Which ITR form to file in case of presumptive income?

      1. A doctor or engineer can opt for presumptive income scheme u/s 44ADA if his gross receipts don’t exceed Rs 50 lakhs and can declare 50% of gross receipts as his income.
      2. Persons engaged in the accountancy profession, Interior decoration, Technical consultancy can also for this scheme.
      3. Freelancers engaged in the above profession can also opt for this scheme if their gross receipts don’t exceed Rs 50 lakhs.
      4. Businessman having turnover less than Rs 2 crore may opt for the scheme u/s 44AD and declare the profits at 8% of gross receipts(6% in case of digital receipts). To know more, click here.
    • Can a company of professionals say lawyers can file ITR 4 for presumptive income?

      No. only Individuals, proprietors, HUF, partnerships can. Companies, AOP, BOI, limited liability partnerships cannot file ITR 4.For more details click Which ITR to file.

    • Do I need to report exempt dividend income from shares/mutual funds in ITR Form 1?

      Yes. In ITR1, under Part D – computation of tax payable, there is a column for exempt income. In this column, you have to report your exempt Dividend income. If the dividend is received from Indian company, it should be reported under section 10(34) and if the dividend is received from mutual funds, it can be reported under the head “others” given under exempt income.

    • How to mention Aadhaar enrollment number in ITR forms?

      1. ITR forms released for FY 2016-17 (AY 2017-18) have a 28 digit column for quoting Aadhaar enrolment number. You can either mention 14 digit Aadhaar number or 28 digit Aadhaar enrolment number, if you do not have Aadhaar number. To enter your 28 digit enrolment id, first write the 14 digit enrolment id and then you also need to write the date. For instance if Aadhaar enrolment id is 1234/10480/02615 and Date is 06/05/2013 17: 50:10 then you should quote following as Aadhaar enrolment id.
      2. https://assets1.cleartax-cdn.com/s/img/20170612161407/aadhaar1.png
      3. To know more, click here.

    • I have income from salary more than Rs 50 lakhs.Which form I need to file?.Also is there any requirement to disclose details of assets held by the taxpayer in the ITR?

      In case of income from salary more than Rs 50 lakhs,ITR 2 will be applicable.ITR 1 is applicable only if income is less than Rs 50 lakhs. Yes there is a requirement to disclose the details of assets held by the taxpayer in the ITR if the income of the taxpayer is more than Rs 50 lakhs. All the assets held by the taxpayer and corresponding liabilities is required to be disclosed in Schedule AL of the ITR form.

    • Who can file the return in paper form (offline)?

      1. Only following persons can file their ITR offline:
      2. Individual who are of the age 80 years or more at any time during the financial year?
      3. Individual whose income is less than Rs 5 lakhs per year and who do not have to claim refund in the return.
    • There are various deductions that are not reflected in the Form 16 issued by the employer. Can I claim them in my return?

      Yes. Various deductions under Sec 80 such as ELSS,PPF,Life and health insurance,NSC,Children tuition fees,5 year fixed deposit, donation for charity, repayment of home loan can be claimed in ITR even if not mentioned in Form 16.You can also claim HRA (if you are paying the rent and it is a part of your salary structure) in ITR.It may happen that you miss to give the proof of rent receipts to your employer and so he did not give you the tax exemption for HRA in Form 16.But don’t worry , you can claim them in your ITR.