E-verifying your income tax returns is a crucial step in ensuring that your tax filings are authenticated and processed efficiently. Understanding how to e-verify income tax returns can save you time and prevent any delays in receiving potential refunds. With the rise of digital platforms, this process has become more streamlined, making it easier for taxpayers to comply with requirements.
Additionally, if you have taken a home loan, e-verifying your tax returns becomes even more critical. Home loan borrowers can claim significant tax benefits on both the principal and interest components of the loan. Timely e-verification ensures that these claims are processed without delays, helping you maximize your tax savings. For instance, deductions under Sections 80C and 24(b) can provide substantial relief, reducing your overall tax liability and improving your financial planning. Therefore, understanding and utilising the e-verification process not only ensures compliance but also leverages the full range of tax benefits associated with home loans.
What is e-verification of income tax return?
E-verification of an income tax return is electronically confirming the authenticity of a submitted return. This crucial step ensures that the return is filed by the legitimate taxpayer, eliminating the need for physical verification. The process is designed to be faster and more convenient, with various electronic methods available for taxpayers to use. The Income Tax Department of India has implemented multiple e-verification options to simplify this task, making it user-friendly and accessible. E-verification methods include generating an Electronic Verification Code (EVC) through net banking, Aadhaar OTP, or using a bank ATM, among others. This streamlined approach helps in the efficient processing of returns and the timely issuance of refunds.
Importance of e-verification of income tax return
E-verification is essential for the processing of your income tax return. Without e-verification, your return remains invalid, and any refunds due will not be processed. E-verification confirms your identity and ensures that your return is legitimate. It helps the Income Tax Department to streamline the return processing, reduce fraud, and ensure timely issuance of refunds. Completing the e-verification process promptly is crucial for efficient tax administration and for you to receive any refunds on time.
Methods to e-verify income tax return
There are several methods to e-verify your income tax return.
- Electronic verification code (EVC) through net banking: Generate an EVC by logging into your net banking account and using it to verify your return.
- Aadhaar OTP: Link your Aadhaar number with your mobile number and PAN, generate an OTP through the Aadhaar portal, and use it to verify your return.
- Bank ATM: Visit your bank’s ATM, use your debit card to generate an EVC, and enter this code on the e-filing portal.
- Demat account: Use your Demat account details to complete the e-verification process.
- Pre-validated bank account: Utilise a pre-validated bank account linked with your PAN for e-verification.
Each method offers secure, flexible, and convenient options for electronic verification of your income tax return.
EVC through net banking for e-verification
EVC through net banking is a popular and secure method for e-verifying income tax returns. Taxpayers can log in to their net banking account, navigate to the income tax e-filing portal, and generate an Electronic Verification Code (EVC). This code can then be entered into the e-filing portal to verify the tax return. This method leverages the robust security features of net banking platforms, ensuring a safe and seamless verification process. It provides an added layer of authentication, as the EVC is generated within the secure environment of the taxpayer's bank. This approach is convenient and enhances the overall security and efficiency of the e-verification process.
EVC through Aadhaar OTP for e-verification
E-verification using Aadhaar OTP is a quick and convenient method. It requires linking your Aadhaar number with your mobile number and PAN. Once these are linked, you can generate a One-Time Password (OTP) through the Aadhaar portal. This OTP is sent to your registered mobile number and can be entered on the income tax e-filing portal to complete the e-verification process. This method is particularly efficient for taxpayers who already have their Aadhaar and mobile numbers linked, as it simplifies the verification process and eliminates the need for physical documentation. It provides a secure and user-friendly way to authenticate your tax return, ensuring timely processing and refunds.
EVC through bank ATM for e-verification
EVC through a bank ATM is a convenient method for e-verifying your income tax return. Taxpayers can visit their bank's ATM and use their debit card to generate an Electronic Verification Code (EVC). This code is sent to the registered mobile number linked with the bank account. Once received, the EVC can be entered into the income tax e-filing portal to complete the e-verification process. This method offers an alternative for those who may not have access to net banking or Aadhaar OTP, ensuring that everyone has the means to verify their tax returns electronically. This approach enhances flexibility and convenience, making the e-verification process accessible to a broader range of taxpayers.
Step-by-step guide to e-verifying your income tax return
- Step 1: Login to income tax e-filing portal for e-verification: Visit the Income Tax e-filing portal and log in using your PAN and password. Ensure your account is registered and active for smooth access.
- Step 2: Select 'e-verify return' for e-verification: Navigate to the 'My Account' section and select the 'E-verify Return' option. This will take you to the verification page where you can choose your preferred verification method.
- Step 3: Choose verification method for e-verification: Select from the available verification methods: EVC through net banking, Aadhaar OTP, or bank ATM. Follow the prompts to proceed with your chosen method.
- Step 4: Enter EVC or aadhaar OTP for e-verification: Enter the EVC generated via your chosen method or the Aadhaar OTP received on your registered mobile number. Make sure to enter the correct code to avoid errors.
- Step 5: Submit and complete the process for e-verification: After entering the verification code, click on 'Submit' to complete the e-verification process. A confirmation message will be displayed, and you will receive an email and SMS notification once your return is successfully verified.
Home loan benefits and tax implications
Taking a home loan can have significant tax benefits which are crucial for your financial planning. Here’s how a home loan can impact your taxes:
Tax deductions on home loan
- Principal repayment (Section 80C): Deduction up to Rs. 1.5 lakh for principal repayment.
- Interest payment (Section 24(b)): Deduction up to Rs. 2 lakh for interest payment on self-occupied property.
- First-time buyers (Section 80EEA): Additional deduction up to Rs. 1.5 lakh for first-time homebuyers under certain conditions.
Claiming deductions
To claim these deductions, you need to provide proof of home loan repayment, which can be done through your income tax returns. This is where e-verification plays a crucial role:
- Quick processing: Ensures faster processing of your tax returns and claims.
- Accuracy: Reduces errors, ensuring all eligible deductions are accurately processed.
Suppose you have taken a home loan of Rs. 50 lakh at an interest rate of 8.50% per annum. Your annual interest payment would be Rs. 4.25 lakh. If your property is self-occupied, you can still claim Rs. 2 lakh as a deduction under Section 24(b). This deduction significantly reduces your taxable income, thereby lowering your tax liability.
E-verifying your income tax return ensures that these claims are processed without delay, allowing you to benefit from the tax deductions associated with your home loan promptly.
Explore Bajaj Housing Finance Home Loan
Now, if you are someone aiming to maximise income tax savings while also fulfilling the dream of owning a home, then choosing a home loan from Bajaj Housing Finance is the strategic move you have been searching for. Whether you are a first-time buyer or looking to upgrade to your dream home, our long repayment tenure, competitive interest rates, and hassle-free application process make the journey to homeownership smooth and rewarding. Here are a few reasons why you should opt for a home loan from Bajaj Housing Finance:
- Long repayment tenure: Enjoy the flexibility of extended repayment tenures, allowing you to select a plan that suits your financial situation. This flexibility helps prioritise your loan repayment effectively, making it easier to fit within your budget and streamlining your tax return process effortlessly.
- Competitive interest rates: Begin your home financing journey with competitive
- Top-up loan facility: Access additional funds of Rs. 1 crore* or higher, through our home loan balance transfer option. This facility is perfect for those who need extra financing for extensive home improvements or expansions. With minimal documentation and attractive interest rates, the top-up loan option provides the financial boost you need without the hassle.
- Tailored loan solutions Personalise your home loan according to your requirements with our flexible options. Home Loan from Bajaj Finance allows you to customise both your loan amount and repayment tenure, giving you control over your financial planning.
Take advantage of Bajaj Housing Finance Home Loan to seamlessly integrate your tax-saving goals with your dream of owning a home. Explore our home loan today and embark on your journey to homeownership with confidence and convenience.
