How to File Income Tax Return Online - A Step by Step Guide

With the ITR filing process going completely online, it is often preferred that we undertake the task ourselves. While delegating or outsourcing the task of computing our income tax to an accountant may seem tempting, even in doing so, we need to make sure we are accounting for all the sources of income.

If you are also handling your ITR filing on your own, it may seem like a complicated and time-consuming process. To make the process easier and hassle-free, the Income-tax department has now taken the process online on their e-portal.

 While the online ITR filing process is seamless, you can file ITR offline as well. Keep reading to know how you can file ITR online and offline.

How to File ITR Online?

As mentioned earlier, the income tax department has taken the ITR filing process online. The portal has an e-filing software that includes all the ITR forms for the current financial year. However, only ITR 1 and ITR 4 can be filled entirely online without having to download any software.

Follow these steps to file ITR online:

1. Visit the official Income Tax e-filing website ttps://www.incometaxindiaefiling.gov.in/.

2. If you are a new user, first register yourself on the portal. In case you are a registered user, login with your user ID (PAN number), password, and captcha

3. Choose the applicable assessment year, ITR form as per your eligibility. Then select the submission mode as ‘Prepare and Submit Online’ to proceed.

4. In case you have filed ITR before, it will prompt you to select details that you want to prefill. Choose the necessary information and click on continue.

5. You will be redirected to a page that will allow you to fill the form. However, before you start filling out the details, ensure that you have gone through the General Instructions displayed at the start of the page.

6. Start filling the form with the necessary details under tabs like - General Information, Income Details, Tax Details, Tax paid and verification, and 80G.

7. Before you submit the form, recheck the details entered to avoid any mistakes. If the details are correct, click on preview and submit. You will get a preview of your form before the final submission.

8. After clicking on submit, your ITR will be uploaded. Then, you will be asked to verify the return using the options available.

9. You can either verify the details electronically through Aadhaar OTP or Electronic Verification Code (EVC) or offline by sending across a signed printout of the ITR V to CPC, Bengaluru within 120 days from the e-filing date.

10. After successfully uploading the ITR, an acknowledgement of ITR V will be sent to the registered email ID.

11. Based on the information submitted, the IT department will process the returns and will notify you regarding the same via email or SMS.

 

How to File ITR Offline?

Here’s what you need to do when filing your ITR offline.

1. Visit the Income Tax e-filing portal https://www.incometaxindiaefiling.gov.in/.

2. Choose the ‘IT Return Preparation Software’ option under the Download section on the right side of the page.

3. Once the file is downloaded, extract the utility ZIP file and open it.

4. Fill in the necessary fields of the ITR form.

5. Validate the tabs of the given ITR form and calculate the tax.

6. Then, generate and save the XML file.

7. Again, login to the e-filing portal using your credentials.

8. Select the ‘Income Tax Return’ option in the e-File menu.

9. Select the appropriate assessment year and ITR form. Select the ‘Filing Type’ as ‘Original/Revised Return’. Choose the ‘Submit Mode’ as ‘Upload XML’. Do the needful to proceed to verification.

10. Then, attach the ITR XML file and complete the verification as chosen.

11. Submit the ITR, and it is done.

Is It Mandatory to File ITR Online?

For people falling under any one of the following categories are liable to file the ITR -

• Individuals or HUFs that earn a total annual income of more than INR 5 lakh or have a tax refund claim are liable to file the ITR online. However, super senior citizens (people of 80 years old and above) can file the ITR either online or manually

• All companies are liable to file ITR online under digital signature

• Individuals, firms, or HUFs who have books of account to be audited under Section 44AB have to file the ITR online

• For those filing form ITR-5 or are claiming tax relief under Section 90, 90A, or 91 of the Income Tax Act have to file the ITR online

• For Indian residents having assets outside of the country has to submit the ITR online

Advantages of Filing the ITR Online

Since previously the ITR filing process was manual, it was complicated and tiresome. But now with the Income Tax Departing taking the ITR filing online, the burden has undoubtedly lessened. The benefits of filing the ITR online are as follows -

• It allows you to maintain the records of all the financial transactions with the IT department efficiently. So, in case you are applying for a loan or visa in the future, providing tax returns becomes an easy task.

• You can fill the ITR a month or two prior to the deadline. That way, you do not have to hassle at the last moment.

• Since filing the ITR late can lead to penalties, filing the same online is quite convenient. You can submit your tax returns anytime, anywhere before the deadline.

Guide on How to File ITR Offline for Super Senior Citizens

Super senior citizens, i.e. Individuals over the age of 80 are provided with an option to file ITR offline during the financial year. Along with super senior citizens, individuals or HUFs with income less than Rs. 5 lakh (and entitled to get a refund) can also file their ITR offline.

Here’s a step-by-step guide to ITR filing offline:

• You need to request Form 16

• You will then have to submit your ITR returns in physical form at the Income Tax Department

• Once you have submitted the form, you will get an acknowledgement slip from the IT Department.

Who is Required to File ITR?

According to Section 139(1) of the Income Tax Act, 1961, any person who total annual income if more than income tax exempted limit (INR 2.5 lakh) will have to file the ITR. Moreover, any private or public company across the country, Hindu Undivided Family (HUFs), Association of Person (AOP), Body of Individual (BOI), have to declare their profits and losses for the current financial year and file the ITR.

So, individuals that have to file the ITR are as follows -

• An individual who is less than 60 years old and has a total annual earning of higher than INR 2.5 lakhs

• An individual who is between the age of 60 years and 80 years, and has a total yearly earning of INR 3 lakh or more

• Individual who is above 80 years old and has a total annual earning of more than INR 10 lakh

• An individual residing in India owns an asset or any financial interest in an entity outside the country

• A company or an organisation is liable to file tax, whether they are in profit or loss

• An individual applying for a loan or visa, proof of ITR will be necessary

• An individual receiving income from property held under any trust for charity or research, education or medical care centre, trade union, or non-profit university

Note: If any non-Indian resident earns their income from India, then they are liable to pay taxes and file the ITR.

You can use the income tax calculator available on Finserv MARKETS to determine the amount that needs to be paid as taxes. The tool helps taxpayers gain an overall idea on the amount they are liable to pay as tax in India.

What are the Income Tax Slabs for FY 2020-21?

The Union Budget 2020 declared a new income tax regime that needs to be followed for the FY 2020-21. However, note that this new regime is optional and you get to choose whether you want to file taxes under the new system or the existing one.

The new income tax slab for individuals under the age of 60 years is as follows -

Income Tax Slab	Tax Rate
Up to INR 2.5 lakh	NIL
INR 2.5 lakh to INR 5 lakh	5%
INR 5 lakh to INR 7.5 lakh	10%
INR 7.5 lakh to INR 10 lakh	15%
INR 10 lakh to INR 12.5 lakh	20%
INR 12.5 lakh to INR 15 lakh	25%
INR 15 lakh and above	30%

The existing/old income tax slab for individuals under the age of 60 years is as follows -

Income Tax Slab	Tax Rate
Up to ₹2,50,000*	Nil
₹2,50,001 to ₹5,00,000	5% of total income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000	₹12,500 + 20% of total income exceeding ₹5,00,000
Above ₹10,00,000	₹1,12,500 + 30% of total income exceeding ₹10,00,000

Types of ITR Forms

There are multiple ITR forms available on the official website of the Income Tax Department of India. These forms are used to file tax returns based on your income source and taxpayer category you fall under (resident, non-resident, individual, or non-individual)

The types of ITR forms available to you are as follows -

1. ITR-1: The ITR-1 form, also famously known as SAHAJ, is for individuals who earn their annual income through salaried jobs, pension, one house property, interest, or other sources and has a total revenue of INR 50 lakh. This excludes winning lotteries and income earned from race horses.

2. ITR-2: The ITR-2 form is for individuals or Hindu Undivided Families (HUFs) who earn their annual income, not from the profits of business or other professions.

3. ITR-3: The ITR-3 form is for people or HUFs who indeed earn their annual income from profits of business or other professions.

4. ITR-4: The ITR-4 form is for people who have a presumptive income from a business or profession.

5. ITR-5: The ITR-5 form is for everyone other than individuals, HUFs, company, and people filing Form ITR-7.

6. ITR-6: The ITR-6 form is for companies that do not claim income tax exemptions under Section 11 of the Income Tax Act.

7. ITR-7: The ITR-7 form is for people, including enterprises, who have to file the tax returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E), or Section 139(4F).

How to Download Income Tax Return Form

The ITR forms are made available online on the official website of the Income Tax Department of India. Follow these steps to download the forms -

1. Visit the official website of the Income Tax Department

2. Click the ‘Form/Download’ option on the homepage

3. Choose ‘Income Tax Returns’ from the dropdown menu

After this step, you will be redirected to the Income Tax Return webpage where you can down the forms that apply to you.

Documents Required for the ITR Filing

Following are the documents that are necessary when filing the ITR online -

• PAN details

• Bank Statements

• Interest certificate from banks or post offices

• Tax-saving investment proofs

• Form 16 (for salaried employees)

• Salary slips

•  

  TDS certificate

  Form 16A/16B/16C
  

   

• Form 26AS

How to Check ITR Status Online?

After filing your ITR returns, you can check the status online. There are two ways in which you can go about the process -

1. Using Acknowledgement Number - In case you do not have login credentials

   1. Visit the official website of the Income Tax Department of India

   2. Under the ‘Service’ tab, choose the ‘ITR Status’ option

   3. You will be redirected to a new page where you have to enter your PAN details, ITR acknowledgement number, and captcha code

   4. Upon submitting the details, the status will be displayed on the screen

2. In case you have the login credentials

   1. Visit the official website of the Income Tax Department of India

   2. Login with your credentials

   3. Choose ‘View Returns/Forms’ from the dashboard

   4. Choose the ITR option and relevant assessment year and click on submit

   5. After this, the return status will be displayed on the screen

Important Dates to Remember for The ITR Filing

The following table will help you with the due dates for the current financial year -

Category of Taxpayer	Due Date for Tax Filing
Individual	10th January 2021
Body of Individuals (BOI)	10th January 2021
Hindu Undivided Family (HUF)	10th January 2021
Association of Persons (AOP)	10th January 2021
Businesses (Requiring Audit)	15th February 2021
Businesses (Requiring TP Report)	15th February 2021