Filing your Income Tax Return (ITR) in India is not only a legal obligation but also provides several benefits for taxpayers. Here are some key advantages:
- Claiming Tax Refunds: If you’ve paid more tax than required (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. This is beneficial for tasks such as applying for loans, visas, or government tenders.
- Loan Applications: Banks and financial institutions often use ITRs to assess your financial status and creditworthiness. Timely filing of ITRs can facilitate smoother approval of loans.
- 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
With the deadline for filing ITRs for the financial year 2023-24 (AY 2024-25) approaching on July 31, 2024, it is essential for taxpayers to register on the e-filing portal. Here’s a step-by-step guide for online registration:
- Visit the homepage of the Income Tax Department’s e-Filing portal.
- On the basic details page, provide all required information such as PAN, name, date of birth, membership number, and enrollment date, then click on “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 date of incorporation, gender (if applicable), and residential status as per your PAN card, then click “Continue.”
- Once your PAN is authenticated, proceed to the Contact Details page.
- Provide your primary mobile number, email ID, and address, then click “Continue.”
- You will receive two separate six-digit OTPs on your primary mobile number and email ID. Enter these OTPs and click “Continue.”
- Note: The OTPs are valid for 15 minutes, and you have three attempts to enter the correct OTP.
- On the Set Password screen, enter your password in the “Set Password” and “Confirm Password” fields.
- Set a personalized message for the password and click “Register.”
- Once successfully registered, click on “Proceed to Login” to initiate the login process.
By following these steps, taxpayers can easily register on the e-filing portal and access the full range of services and resources available.