Online Tax Filing in India has grown by leaps and bounds in the last decade. The growth has mainly come from the burgeoning middle class who are savvy enough to save money by e-filing their income tax returns. As per data released by the IT Department earlier this year, around 4 percent of India’s population paid income tax for AY2015-16. This works out to roughly 5 Crore individuals from a population of 120 Crore.
Income Tax paid by citizens serves as an important source of revenue for the country which can be used to build institutions and strengthen democracy. It is important that for India to become a developed country, the tax net is widened. Some experts believe the tax assesses could double to 8% of the population by 2020.
We have shifted through these reports to present some interesting data about Income Tax Payees in India below :
- Indians resident in the state of Maharashtra pay 40% of India’s total income tax. Mumbai, the state capital of Maharashtra which is home to 26 billionaires and thousands of millionaires accounts for the bulk of this payment.
- Just two states of Maharashtra and Delhi account for 53% of the share in income tax collected for AY2014-15.
- The National Capital Region of Delhi generates more income tax than larger states like Gujarat and Uttar Pradesh combined.
- Three Indians paid more than Rs 100 crore in income tax for AY2014-15. Can you guess who these could be?
- The North Eastern States have shown the highest growth in Income Tax paid on a small base.
- Roughly 18,000 Individuals declared an income in excess of Rs 1 Crore for AY2012-13.
- Corporates Entities paid tax at the rate of 34.61% over income in excess of Rs 1 Crore compared to the 40% charged as corporate taxes in the United States.
- More than 10,000 NGO’s lost their FCRA license last year because they failed to file their annual returns declaring the donations they received from abroad.
How to File Your Income Tax Returns Online for AY2016-17
A host of new services and websites have made e-filing returns easier for salaried employees and proprietors. One no longer needs to rush to a Chartered Accountant with your pass books to face an interrogation of the credits and debits found in your savings account.
All you need to do now is download your bank statements from your Internet Banking Account to compute your tax due and you can upload your returns to the Income Tax Portal within 20-30 minutes.
There are Two main ways by which you can file your IT Returns Online
- E-Filing in consultation with a Tax Expert.
- Self E-filing on Website for Free.
We will review both these methods below:
Self E-Filing your Returns
This involves registering your profile and entering your personal information on an external website. Then you are required to upload your Form 16 online and declare any other income that you may have received during the assessment year.
After this you will be asked a few questions based on the data provided. The software will then compute your tax liabilities for free (Goodbye Calculator!). You can file your returns online at H&R Block. If you face any difficulty in filing online, you can get free assistance on chat and through toll free numbers.
E-filing with Tax Expert
When one chooses to hire a tax expert, one benefits from his vast experience of working with thousands of clients annually. A tax expert can help you save on your tax liabilities and is highly recommended for high net worth individuals.
The charges of a consultant vary depending on the complexity of the filing requirements and the income of the client. Expert Tax advice is available in India starting from Rs 300 per ITR filed. Let us know about how your tax filing experience was in the comments below.