1. How to file Income Tax Return for mutual funds on new tax portal

How to file Income Tax Return for mutual funds on new tax portal

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6 min read • Updated: February 12, 2024, 4:48 PM

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Summary

To file your income tax return (ITR) for mutual funds on the new tax portal, you need to log in to the portal using your registered mobile number or email ID.

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Investors must keep track of all their investments and income sources to file accurate ITR.

Filing income tax returns (ITR) for mutual funds is an essential task for every investor in India. It is necessary to file ITR to maintain a good financial record and to avoid any legal issues. With the introduction of the new tax portal by the Indian government, the process of filing ITR has become more streamlined and accessible. In this article, we will discuss how to file ITR for mutual funds on the new tax portal.

Step 1: Collect the necessary documents

Before filing ITR for mutual funds, collecting all the necessary documents is crucial. These documents include the following:

Form 16: This is a document issued by the employer that contains information about the income earned by the employee, taxes deducted, and other deductions made.

Consolidated Account Statement (CAS): This statement shows all the transactions made in all the mutual fund schemes an investor has invested in during the financial year.

Bank Statements: It is essential to collect bank statements of all the bank accounts held during the financial year as they contain information about the interest earned on savings accounts, fixed deposits, and recurring deposits.

Capital Gains Statement: This statement shows the capital gains from selling mutual fund units.

Step 2: Register on the new tax portal

Before filing income tax returns (ITR) for mutual funds on the new tax portal, investors need to register on the portal using their PAN (Permanent Account Number) and other details such as name, date of birth, and mobile number.

After successful registration, a one-time password (OTP) will be sent to the registered mobile number or email ID, which needs to be verified to complete the registration process. Once registered, investors can access various services, including e-filing of ITR and tracking the status of their ITR.

Step 3: Log in to the portal

To file your income tax return (ITR) for mutual funds on the new tax portal, you need to log in to the portal using your registered mobile number or email ID. Once logged in, click on the "e-File" tab and select "Income Tax Return" from the drop-down menu.

Then, select the Assessment Year for which you are filing the ITR and choose the ITR form, which is based on the income earned and the nature of the income.

Step 4: Select the correct ITR form

Select the correct ITR form from the drop-down menu. For investors who have only invested in mutual funds and have no other sources of income, ITR-2 is the correct form to select. However, if an investor has other sources of income, they need to select the ITR form accordingly.

Step 5: Fill in personal details

Fill in personal details such as name, PAN, Aadhaar number, date of birth, and contact details. Check the details carefully before proceeding to the next step.

Step 6: Fill in the income details

In this step, investors need to fill in their income details from mutual fund investments. This includes details of capital gains, dividends, and any other income earned from mutual funds. It is essential to provide accurate and complete details to avoid any errors or discrepancies in the ITR.

Additionally, investors need to mention their tax-saving investments, such as ELSS mutual funds or contributions made towards Provident Fund, National Pension System, or Life Insurance.

Step 7: Claim deductions and exemptions

Investors can claim deductions and exemptions under various sections of the Income Tax Act. These deductions and exemptions can help reduce tax liability. Some of the commonly used deductions and exemptions are:

  • Section 80C: Deduction for investments made in specified instruments such as ELSS, PPF, NSC, etc.
  • Section 80D: Deduction for medical insurance premiums paid.
  • Section 80TTA: Deduction for interest earned on savings accounts.
  • Section 80G: Deduction for donations made to specified funds and charitable organisations.

Step 8: Verify the details

After filling in all the necessary details, verifying them before submitting the form is essential. Investors need to check if all the details are accurate and complete. Any errors or discrepancies should be corrected before submitting the form.

It is advisable to cross-check the information with the mutual fund statement and other documents to ensure accuracy. Once verified, investors can proceed to submit the form.

Step 9: Submit the form

After verifying the details, click on the "Submit" button. The form will be submitted, and an acknowledgment will be generated. The acknowledgment contains a 15-digit acknowledgement number, which confirms the submission of the ITR.

It is advisable to download and save the acknowledgement for future reference. The acknowledgement can also be used to check the status of the ITR. Once the ITR is submitted, it is necessary to verify it, which is the next and final step in the process.

Step 10: Verify ITR

Once the ITR has been submitted, it is necessary to verify it. There are two methods to verify ITR:

  • E-Verification: This method requires an investor to e-verify the ITR through the Aadhar OTP, Net Banking, or Bank Account Number.
  • Physical Verification: This method requires an investor to send a signed copy of the ITR-V (Income Tax Return Verification) to the Income Tax Department's Central Processing Centre within 120 days of e-filing the ITR.

Conclusion

Filing ITR for mutual funds on the new tax portal is a straightforward and streamlined process. By following the above steps, investors can easily file their ITR and maintain good financial records. Filing ITR in good time is essential to avoid any legal issues and penalties.

Investors must keep track of all their investments and income sources to file accurate ITR. By filing accurate and timely ITR, investors can stay compliant with tax laws and maintain good financial health.

Disclaimer

"The information provided in this article is based on the old tax regime, and the steps mentioned may not apply to the new tax regime. We recommend referring to the latest guidelines issued by the Income Tax Department for the new tax regime."

We do not take any responsibility for any action readers take based on the information provided in this article.