E-filing & E-verifying Income Tax using Aadhaar Card: Procedure and Requirements

E-filing & E-verifying Income Tax using Aadhaar Card

Aadhaar card-based electronic filing of income taxes enables taxpayers to electronically file their income tax returns and have those reports verified. The Indian government’s given Aadhaar unique identification number is used in this procedure as an authentication method. Individuals can benefit from a streamlined and simplified approach to submitting taxes by connecting their Aadhaar card with them, assuring accuracy and efficiency.

The Aadhaar card is a crucial and highly significant identity document in India. Removing duplicates and counterfeits from beneficiary and employee lists successfully combats fraud in the financial distribution system. Aadhaar gives people a unique identity through its biometric features, easing administrative procedures and enabling access to government benefits like subsidies, pensions, passports, and other necessary services. Its importance comes from its capacity to streamline administrative processes and boost their effectiveness while assuring correct identification and verification.

The Procedure of E-filing Income Tax using an Aadhaar Card

Using an Aadhaar card, you can electronically file your income tax return using the following steps:

• Register on the Income Tax Department website.
• In your account settings, link your Aadhaar card.
• Gather the necessary tax-related documents.
• Select the proper income tax return form.
• Accurately enter the necessary information.
• Calculate the tax liability.
• Verify and create the XML file.
• On the e-filing portal, upload the XML file. 
• Verify the uploaded file, then download the ITR-V.
• E-verify your return using the Aadhaar OTP.
• Obtain confirmation on the successful submission.

How to Link an Aadhaar Card with a PAN Card

Follow these procedures to link your PAN to Aadhaar:

• Go to https://incometaxindiaefiling.gov.in/ to access the income tax e-filing portal.
• If you haven’t already, create an account on the portal using your PAN as the user ID.
• Enter your login credentials and birthdate to log in.
• Look for the instruction to link your PAN with your Aadhaar. If not, navigate to “Profile Settings” in the menu bar and select “Link Aadhaar.”
• Compare the information on your PAN card to your Aadhaar card. Correct the information on both documents if there is a discrepancy.
• Enter your Aadhaar number and press the “link now” button if the information is correct.
• A pop-up notification will confirm your Aadhaar and PAN will be successfully linked.
• You can link your PAN and Aadhaar to either https://www.egov-nsdl.co.in/ or https://www.utiitsl.com/.

Prerequisites for E-filing Income Tax

There are a few prerequisites you must meet before filing your taxes electronically. These include having a PAN card, an active bank account, a valid Aadhaar card, and pertinent tax-related documentation such as Form 16, Form 16A, Form 16B, and Form 16C, as well as bank statements, investment documentation, and other supporting documents. You also require a basic comprehension of the e-filing procedure and access to a computer or mobile device with an internet connection.

Requirements for E-filing Income Tax using an Aadhaar Card

List of documents required

The following documents are required to file income taxes using an Aadhaar card electronically:

• A valid Aadhaar card is necessary since it is your identification number.
• PAN card: To file income taxes and link them to your Aadhaar, you must have a Permanent Account Number (PAN) card.
• Account information: You must have the information for your active bank account to get tax refunds or make any necessary payments.
• Form 16: If you are a salaried employee, you will want Form 16, which is sent to you by your company and contains information on your salary, tax deductions, and TDS (Tax Deducted at Source).
• Investment proof: Compile evidence of your investments, such as investment statements, receipts, or paperwork about deductions under various sections of the Income Tax Act.
• Other supporting records: You may require extra records, such as information on rental income, capital gains statements, or self-employed company revenue records, depending on your income sources and deductions.

When electronically filing your income taxes with an Aadhaar card, make sure to have these documents available to ensure a quick and correct filing procedure.

Penalty for Non-compliance

Penalties may apply if the requirements for e-filing income tax returns are unmet, such as when the tax return is not filed on time or contains inaccurate information. Various elements, including the filing delay, tax liability, and income category, affect the penalty amount. Sticking to deadlines and ensuring accurate filing is crucial to prevent fines and other legal repercussions.

E-verification of Income Tax Return

Different methods for e-verification 

An Income Tax Return (ITR) can be electronically verified using several methods. These methods include:

• Digital Signature Certificate (DSC): Taxpayers can use a DSC to digitally sign their ITR, which increases the filing process’s security and legitimacy.
• Aadhaar OTP: Taxpayers can utilize their registered cellphone number connected to their Aadhaar to establish a One-Time Password (OTP) that they can use to authenticate their ITR electronically.
• Bank/Demat Account Electronic Verification Code (EVC) Generation: Taxpayers can create an EVC by connecting their bank or demat account with their PAN and Aadhaar. The ITR is then validated using the EVC.
• Using a bank ATM to obtain an Electronic Verification Code (EVC) (offline method): The EVC is created by the taxpayer at an authorized bank ATM by inserting their debit card and following the on-screen instructions. This EVC is then used to validate the ITR.
• Net Banking: Taxpayers can log in and e-verify their ITR using accredited banks’ net banking service.

Taxpayers have simple ways to safely and electronically validate their ITRs using these techniques.

E-verification using an Aadhaar card

It is simple and convenient to electronically verify an Income Tax Return (ITR) using an Aadhaar card. The Aadhaar OTP (One-Time Password) verification form is available to taxpayers. They would receive an OTP on their registered mobile number connected to their Aadhaar after filing the ITR. They must input this OTP on the e-filing page to finish the verification process. The ITR can now be authenticated securely and quickly using Aadhaar OTP-based verification, which does away with the necessity for the physical submission of papers. It guarantees adherence to income tax standards while streamlining the taxpayers’ verification process.

Conclusion

Now that we have concluded, it is clear that using an Aadhaar card to file income tax returns comes with several benefits. It offers taxpayers a practical, accurate, secure, and economical solution. People can benefit from a smooth process accompanied by guidance during the registration, document gathering, form selection, and error-checking stages by choosing Kanakkupillai as their e-filing partner. Through encrypted data transmission and secure storage, Kanakkupillai ensures the security of personal information. Taxpayers can save a lot of money by using the free e-filing options available and possibly getting penalties and interest reduced.

Additionally, e-filing makes it possible to get refunds electronically, eliminating the need for check-cashing services. The ultimate goal of Kanakkupillai is to give taxpayers a hassle-free experience that includes ease, accuracy, security, and cost savings. Put your faith in our timely and accurate tax filing services.

FAQs

1) Can I e-file income tax using an Aadhaar card without linking it with a PAN card?

No, it is not possible to e-file income tax using an Aadhaar card without linking it with a PAN card. Linking Aadhaar with PAN is mandatory for e-filing income tax returns in India.

2) Is e-filing income tax using an Aadhaar card mandatory?

Yes, the Aadhaar / Enrolment ID of the Aadhaar application form must be quoted to file an income tax return, according to Section 139AA of the Income-tax Act, 1961, as added by the Finance Act, 2017.

3) What are the benefits of e-filing income tax using an Aadhaar card?

Convenience, accuracy, secure data transmission, less paperwork, quicker processing, access to government subsidies and services, and the omission of duplicates and fakes from beneficiary lists, decreasing fraud are all benefits of filing income taxes electronically using an Aadhaar card.

4) How can I check the status of my e-filed income tax return?

One can check the status of the e-filed income tax return through the Income Tax Department’s online portal.

5) What is the penalty for late filing of income tax returns?

A penalty of Rs. 5,000 is charged for filing income tax returns after the deadline for an Assessment Year (AY). In addition, from April of the AY until July, interest at a monthly rate of 1% is charged on the unpaid tax payable if the amount due is Rs. 10,000 or more.

6) How can I rectify errors in my e-filed income tax return?

If you find any apparent mistakes in your income tax return, you can file a request for rectification via the e-Filing portal.

7) Can I e-file an income tax return on behalf of someone else using their Aadhaar card?

Yes. Using the Aadhaar OTP method, the Authorized Signatory / Representative Assessee can e-Verify the return on the Assessee’s behalf.

8) How can I download the acknowledgement of my e-filed income tax return?

Log into the income tax India website and select ‘e-File’ to download the acknowledgement (ITR-V) of your electronically filed income tax return. Click on “Income Tax Returns”>”View Filed Returns,” then select the relevant assessment year, then select “Download Form.”

9) Is it safe to e-file income tax returns using an Aadhaar card?

Yes, The process is considered to be safe.