Over the last few years, the income-tax department of the country has been very dedicated to making the process for filing of ITR returns easier to ensure robust compliance by the taxpayers. However, many people find still find it intimidating and prefer to pass it on to professionals.
How to file ITR online?
Filing your ITR online is mandatory, and only super senior citizens who are 80 years or above can file their returns in a paper format. As filing the ITR online has simplified the process manifold, here is a step-by-step guide on how to file ITR-
Step 1- Register/Login on the Income Tax Department Portal
The first step to filing your ITR online is to register yourself on the Income Tax portal www.incometaxindiaefiling.gov.in. Your Permanent Account Number is your user id for registration, and you are required to set an alphanumeric password for it. Once you have registered on the official website, you need to log in with the same ID and password, and you will get secure access. You will be prompted to put a captcha each time you log in.
Step2 –Collect the relevant documents needed to file your returns
Before you start filing your ITR, all your documents must be organised and handy at the time of filing returns. Here is a list of documents you will need for filing your ITR online-
- PAN Card
- Aadhaar Card
- Bank Account Statements
- Bank Account Details
- TDS certificate( Form 16/Form 16A)
Apart from these basic documents, if you have any other income such as rental income, capital gains/losses, then keep all such documents handy.
Step 3- Click on the "Filing of the income tax return" to begin the process of ITR filing online
Once you have registered yourself on the e-portal, login to your account and click on the “Filing of income tax return” tab on the dashboard.
Step 4 - Download the correct form for ITR filing
There are different ITR filing forms available based on your source of income. Choose the relevant form based on your income. The various available based on the nature of income are-
ITR-1 Form- Individuals earning income from salary, income from house property, and income from other sources.
ITR-2 Form- Individuals and HUFs who do not conduct business or profession as proprietors
ITR-3 Form- Individuals and HUFs earning an income through business or profession as proprietors
ITR-4 Form- Individuals earning income as business professionals
ITR-5 Form- It is for firms, Limited Liability Partnerships (LLPs), co-operative societies, body of individuals
ITR-6 Form- Those companies that are not claiming tax exemptions under Section 11 of the Income Tax Act
ITR-7 Form- It is for trusts, colleges, institutions and political parties
It is essential that you choose the correct form for ITR filing as filling in the wrong form will make it invalid, and you will have to re-file it.
Step 5- Fill in the relevant information in the ITR form
Once you have downloaded the appropriate form, then enter all the relevant details like name, PAN details, address, date of birth, investments, bank details, etc. in the form and validate the details entered by you.
Step 6- Compute your taxable income
Once you have entered all the relevant information in the form, compute your total taxable income for the financial year by adding the income from all the five heads of income.
Step 7- Calculate your tax liability
After you compute your taxable income, calculate your tax liability as per your income tax slab.
Step 8- Verify your Form 26 AS
The next step is to verify your Form 26 AS, which shows all the taxes that you have already paid in the year. You have to go on the quick link menu and open your Form 26 AS where you find details of TDS, advance tax, self-assessment, etc. Form 26 AS is a consolidation of tax credit statement.
Step 9- Calculate your final tax liability
Calculate your final tax liability after deducting the taxes that have already been paid by you. If there are any additional tax that needs to be paid then you can pay it online.
Step 10- ITR filing after paying your dues
Once you have paid your taxes in full, you can file your ITR in Excel or Java software utility. ITR1 and ITR 4 forms can be submitted online only.
Step 11- Verification of your ITR filing
This is the last step in filing ITR. You are required to verify your ITR either electronically or physically. If you opt for electronic verification, then you will receive the acknowledgement receipt immediately. You can also send the ITR for verification by sending a signed copy by post to the Income Tax Department in Bangalore within 120 days, and they will email you the acknowledgement for the same.
After the verification is over, the Income Tax Department will process your ITR to cross-check the details and tax paid by you. On completion, they will communicate the same to you via email on the registered email id.
Over the years, the process of ITR filing has been simplified, and now it is mandatory to e-file your returns except in the case of super senior citizens. If you have any queries or doubts about filing your ITR online, then you can get in touch with our tax experts at IndiaNivesh to help you file your returns.
Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
Commodity Market – Different Types of Commodity Market in India
The commodity market in India has seen a sharp increase in the volumes over the past few years. Commodities are just another asset class like the bond and equity market. Commodities come from the earth and act as raw material for all types of manufacturing businesses. There are many types of commodities that can be traded in the market. In this article, you will learn about commodity trading in India, types of commodity market and other aspects of the commodity market in India. Let us begin by understanding the meaning of commodity. Meaning of Commodity A commodity is a group of goods or assets that are used in our day to day lives such as metals, agriculture, energy, etc. A commodity can be categorised as movable good that can be purchased and sold, except for money and actionable claims. There are various types of commodities that are traded in India. Let us look at the types of commodities. Types of Commodities Traded In India Agriculture: Wheat, Cotton, Rice, Corn, etc. Metals: Copper, Zinc, Gold, Silver, etc. Energy: Natural Gas, Crude Oil, Heating Oil, etc. Meat and Livestock: Cattle, Egg, etc. Let us now learn how you can invest in the commodity market in India. How to Invest in Commodity Market in India? You can commence commodity trading in India in any of the six major commodity trading exchanges as listed below; Indian Commodity Exchange – ICEX Ace Derivatives Exchange – ACE National Multi Commodity Exchange – NMCE The Universal Commodity Exchange – UCX Multi Commodity Exchange – MCX National Commodity and Derivatives Exchange – NCDEX From the above MCX and NCDEX are the most popular exchanges. List of Commodities Traded on Multi Commodity Exchange (MCX) Metals: Aluminium, Brass, Copper, Zinc, Lead, Nickel. Bullion: Gold, Silver. Agri Commodities: Rubber, Black Pepper, Mentha Oil, Crude Palm Oil, Palmolien, Cardamom, Cotton, Castor Seed. Energy: Natural Gas, Crude Oil. List of Commodities Traded on National Commodity and Derivatives Exchange (NCDEX) Fibres: Cotton, Guar Gum, Guar Seed, Kappa’s Oil and Oilseeds: Crude Palm Oil, Cotton Seed Oil Cake, Castor Seed, Mustard Seed, Refined Soy Oil, Soybean Soft: Sugar Cereals and pulses: Wheat, Barley, Paddy, Chana, Maize Rabi, Maize Kharif / South Spices: Jeera, Turmeric, Coriander, Pepper. Let us now learn about the commodities that are most traded. Most Traded Commodities Natural gas, crude oil, gold, silver, cotton, corn, wheat are among the most traded commodities globally. Crude oil and gold are among the most favourite commodities among the traders and investors community. Crude oil is used for producing diesel, petroleum, etc. It is very volatile during global tensions. OPEC is the consortium of oil-producing nations that determine the supply of crude oil. The main oil-producing nations are Russia, US, Saudi Arabia, etc. Just like crude, gold is among the most popular commodity Indian people invest in. The price of gold has an inverse relationship with the US dollar. When the price of the US dollar falls, the prices of gold increase and when the price of the US dollar increases, the prices of gold falls. Let us now learn about the participants in the commodity market. Participants of Commodity Market Speculators Speculators are traders that constantly monitor the price of commodities and predict the future price movement. If the speculators expect the prices of the commodity to move higher, they purchase commodity contract and sell them when the price goes up. Similarly, when they expect the price to go low, they sell commodity contracts and purchase back when the price falls. Thus, the intention of speculators is to make a profit in any type of market. Hedgers Hedgers are the producers, manufacturers, etc. who safeguard their risk by using the commodity futures market. Like for example, if a cotton farmer expects price fluctuation during crop harvesting, he can hedge his position. To hedge the risk, the farmer enters into a futures contract. If the price of the crop falls in the local market, the farmer can compensate for the loss by making profits in the future market. Similarly, if there is an increase in the price during crop harvesting, the farmer can book loss in the futures market and compensate it by selling his crop at a higher price in the local market. Let us now learn about the benefits of trading in the commodity market. Benefits of Trading in the Commodity Market Management of Risk The Securities and Exchange Board of India (SEBI) ensures that the exchanges have proper risk management procedures in place to protect the investors. Therefore, trading in commodities is regarded as very safe. Transparency Trading on the commodity exchanges is very transparent and the buyers or sellers cannot manipulate the price. The price discovery is done without any manipulation and orders are executed only when there is a match between a buyer’s and seller’s order. The margins in commodity markets are low, therefore traders use this market to hedge their position and for higher leverage. There are many benefits of trading in the commodity market. However, there are some important things that you must know while trading in such a market. Things to Know While Trading in Commodity Market The demand and supply chain determines the prices of commodity and you must have a clear idea about it. The prices of commodities depend on various factors and your strategies must be framed after understanding those factors. As a beginner, it is always advisable to take the help of experts before starting commodity trading. The risk in commodity trading is higher because you get higher leverage. The above mentioned are a few things that one must know before indulging in commodity trading in India. As a beginner or seasoned investor, you can contact IndiaNivesh for any assistance relating to the Indian commodity market. Our experts and professionals can help you in finding the best commodity to trade in India according to your risk-taking ability and financial goals. Our aim is to exceed the client’s expectation in all endeavours and we will be glad to serve you. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
How to Perform Technical Analysis of Stocks
Technical analysis of stocks is gaining popularity amongst investors and traders as advancements in charting patterns, and trading platforms are making it easy for investors to use this method for security analysis. However, for an amateur investor, understanding technical analysis of stocks can be intimidating and challenging. Stock market technical analysis is a method used to examine the price movements of stock by studying the historical charts and specific indicators and determine the future price of the stock. Quite simply, it is analyzing the pictorial representation of the past and present price movements and using it establish patterns and identify the trend for the future price of the stock. As opposed to fundamental analysis, which analyses a stock based on its intrinsic value and impact of external factors on the price of the security, technical analysis of stocks is purely based on identifying patterns on a chart to determine the future price movement. Key assumptions for technical analysis of stocks Technical analysis is based on studying the market action and the function of demand and supply of the stock. Few key underlying assumptions are: Believes in the theory of the efficient market and reflects all information The first assumption of technical analysis of stocks is that the current market price of the security reflects all the information and it is the fair price of the stock and should be the basis of analysis. The price movement of stock follows a trend The price of the stock moves in a trend until reversed. So, analysts need to identify the trend by reading the price pattern. Patterns repeat itself The beauty of technical analysis of stocks is that close monitoring of the charts reflects the same patterns being repeated hence making it easier to predict future price movements. Chart Analysis To perform technical analysis, you need to use charts to identify trends and also any reversal in trend. These technical analysis charts are a visual representation of the price of the security over a period. The vertical axis is the price scale, and the horizontal axis is the time scale. The three important technical analysis charts are- Line charts- It is formed by connecting the closing price of the stock over a specific period and does not include any other information like open, high, or low of the stock. Bar charts- Bar charts provide a better visual of the price of the stock as it shows the opening, high, low, and closing (OHLC) of the stock. Candlestick charts- The candlestick chart provides the same information as bar charts, but the representation makes candlesticks charts easier and quicker to understand. Technical Analysis Indicators Indicators are the basis of technical analysis of stocks and play an important role in helping analysts in identifying trading opportunities by giving entry and exit signals in the stock markets. These technical analysis indicators broadly fall in two categories- Leading Indicators –These lead the price movement and indicate the probability of trend reversal in advance. Some of the common leading indicators are the Relative Strength Index(RSI), Stochastic Indicator, etc. Lagging Indicators- These follows the price movement and are trend-following indicators. Some of the common lagging indicators are moving averages (MA), moving average convergence/divergence (MACD), etc. Trend line indicator This is one of the simplest indicators used in technical analysis and is important to identify the market trend. The price movement of a stock is represented in peaks and troughs series, and these series represent the trend in which the price moves. The three market technical analysis of stock trends are- Uptrend- Uptrend is defined as a series of higher highs and higher lows Downtrend- Downtrend is defined as a series of lower highs and lower lows Sideways- The market is said to be flat when the prices move in a horizontal range. Using trend lines is one of the many techniques for analysis, and once the then trend line is broken, it should be used as a warning for a reversal in trend. Once there is a breakout in the trend line additional tools should be used to identify the change in trend. Supportand Resistance Indicators Support and resistance levels are two critical levels that define the meeting point of the forces of demand and supply and help analysts determine the market psychology. Support – It is the level where the demand is strong to keep the security from sliding any further. Resistance- It is the level where the supply is strong to keep the stock from moving any higher. When either of the levels is broken, then the supply and demand have moved on, and new support levels will be established. Momentum Indicators Momentum indicators are usually leading indicators and tell you how strong the current trend is and if the trend is likely to change. Some of the common momentum indicators include The moving average convergence/divergence (MACD) indicator- It shows the relationship between two moving averages. Relative strength index indicator- It measures the speed and strength of the price movement in the market by comparing the current price to the past performance. Oscillating Indicators Oscillating indicators are used for the analysis of securities that are not trending but are trading in a range. Oscillating indicators are beneficial when the security is moving in a horizontal pattern and discover potential entry and exit points as they help determine oversold and overbought conditions. A Stochastic oscillator is the most frequently used indicator. The above indicators are significant for analysts and traders for technical analysis of stock trends and for future price movement prediction. CONCLUSION For anyone who is trading or investing in the equity markets, it is important to understand the basics of technical analysis to understand the market movements. However, as stock market technical analysis is a little complex, correct guidance is essential. Our experts at IndiaNivesh can help you guide through the crucial tools and techniques for technical analysis. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
Are you Investment ready?
*All fields are mandatory