Filing ITR online is essential for you especially if your total annual income exceeds the tax exemption bracket. A taxpayer needs to file their income tax returns every year. Even if an individual whose total income doesn't fall under the taxable bracket can file ITR online to carry forward their losses, claim refunds, etc. Filing Income tax returns online helps access loans, attract VISA or reap such other benefits easily. Delve into the step by step process of online income tax return filing and file your returns at an ease!
Overview/Introduction
An Income tax return is a form using which a taxpayer can declare his income, expenses, tax deductions, investments, etc. According to the Income Tax Act 1961, it’s mandatory for a taxpayer to file an income tax return under several conditions. Even if one doesn’t fall under the taxable income bracket can file income tax return due to a number of reasons including carrying forward losses, claiming income tax refund, leveraging grant of VISA, loan from banking institutions, etc.
Step by step process to file ITR Online
As mentioned above, filing ITR is one of the essential annual returns that taxpayers must file each financial year. Filing ITR returns within the due date is always advisable. It not only helps you fulfill your tax responsibilities but also keep late filing penalties at bay. Following the below steps can help you file your ITR return online without any time or location restriction.
Step 1: Login to eFiling Portal
Go to the official Income Tax Portal online and after that click on ‘Login’. On the further page, you are required to submit your PAN credentials in the User ID section. On entering PAN details correctly, check the security message in the tickbox. Enter your password and then click on ‘Continue’.
Step 2: Browse ‘File Income Tax Return’ section
After logging in on ITR Portal, click on e-File tab and then you will see ‘Income Tax Returns’ in the dropdown menu. In the same section, you get the option ‘File Income Tax Return’.
Step 3: Choose the Right Assessment Year
The next step is to select ‘Assessment Year’ as ‘AY 2024-25’ for filing ITR for FY 2023-24. If you want to file ITR for FY 2022-23, select ‘AY 2023-24’. After that, select your preferred mode of Filing which is Online.
Step 4: Choose the Status
Now, you need to choose your application filing status i.e. Individuals, HUF, or even Others.
Step 5: Select ITR Types
In order to proceed further in the online ITR Filing process, select ITR type. In this step, the taxpayer must be sure about which ITR form he needs to file for ITR returns. As there are a total 7 ITR forms available allowing different categories of taxpayers to file their income tax returns. Form ITR 1 to 4 is designed for filing ITR by individuals and HUFs. Depending upon the sources of income, different ITR Forms may be required to file for ITR.
Consult a CS or financial advisor to determine which ITR Form you need to file.
Step 6: Choose Reason for ITR Filing
In this step, you are required to mark your reason for filing returns. Select the right option as per your situation if;
- Your Taxable income exceeds basic exemption limit
- You fall under any specific condition due to which filing ITR is mandatory for you.
- You have any Other reason for filing ITR.
Step 7: Validate Submitted Information
In this step, a taxpayer needs to carefully validate his/her pre-filled details including PAN, Aadhaar, Name, Date of birth, Contact information, etc. Make sure to provide your bank details if not provided yet and also validate them too.
Before proceeding further, disclose all relevant income, exemptions and also deduction details. However, most of the information of taxpayer’s is pre-filled as per the data provided by your employer, bank, or any such other entity.
Make sure that the provided information is true and authentic. Confirm your returns summary, validate those details, and also pay outstanding tax if any.
Step 8: Verify ITR Onlnie
The final step of ITR filing online is to verify your returns within the time limit which is typically 30 days (or a month). Don’t forget to verify your return as it is considered equivalent to not filing your return. There are various methods to e-verify your returns such as by Aadhaar OTP verification, electronic verification code (EVC), Net banking, or even by submitting a physical copy of ITR-V to Income Tax Department Head office, Bengaluru.
This step-by-step process of file income tax return online helps you file your returns in a hassle-free manner.
Benefits of filing ITR Online
Online Income Tax Return filing has revolutionized the way of filing Income tax returns, making it a more convenient, faster and thus hassle-free process. There are numerous benefits of filing income tax return online; some major benefits are described below;
- eFiling ITR allows the taxpayer to maintain records of all his financial activities effectively with the Income Tax Department.
- Due to facilitating upload of necessary documents for ITR filing, it helps create a database of your financial transactions that the taxpayer can access in just a few clicks. Manual returns filing has no facility that enables taxpayers to access their previous financial transactions. Therefore, e-filing helps taxpayers to easily get into a business deal with any other organization by providing their past financial transactions that may need to be verified by that organization.
- If a taxpayer uploads the necessary documentation for online ITR filing a couple of months before the deadline, he will be able to efile his ITR quickly with lesser congestion and doesn’t need to face any sort of issue due to congestion of server nearby deadline.
- Due to the tedious offline or manual process of ITR filing, many taxpayers fail to file it which may lead to penalties and fines. However, the simplified efiling process enables a taxpayer to file his ITR easily thus saves your time as well as hard-earned money.
- Online income tax filing enables taxpayers to file their returns easily within the due date for the respective year. E-filing of returns under income-tax gives taxpayers an edge as they are more likely to receive refunds faster than offline or manual mode of ITR filing.
Filing ITR online helps taxpayers report their income and assets to the Income tax department. In general, ITR is a kind of self-declaration by the taxpayers of their income, assets and taxes applicable accordingly. With the introduction of e filing portal, itr return filing online enables taxpayers to file their returns without getting detangled into cumbersome process of manual ITR filing. The above post helps you take deeper insights into the step by step process on how to file ITR Online on Income Tax portal. File ITR online before the deadline to avoid penalties and other implications associated with non-filing of income tax returns in India.
FAQs
Q1: What documents are required for ITR filing?
The documents required for ITR filing online are PAN, Form 16, Bank Statements, documents of investment, documents of property, capital gain statements, tax payment proofs, etc.
Q2: Why is ITR filing important?
Filing income tax returns online is vital to adhere to the tax regulatory requirements, maintain financial transparency, enjoy tax benefits, and increase documentation for fulfilling various purposes like loans and visas.
Q3: What should I do in case of any error in my ITR?
If you have filed any information, details incorrectly in your online ITR form, you have the option to rectify a revised return before the specified time frame for it.
Q4: How long does the ITR return filing process take?
The time for processing ITR application varies depending upon the documents uploaded to support income, and assets information submitted in the form.
Q5: How can I get the refund of excess tax I have filed?
Upon finalization of refund, you can get the refunded amount in your bank account, or through cheque. By logging into efiling portal, you can check the status of your income tax refund easily.