A quick guide to income tax e-filing
Every year, income tax filing was a huge task. But now the digital mode has made the process simple. Income tax e-filing is convenient. You can file your returns and make an online income tax payment. Here is a quick step-by-step guide on income tax e-filing.
Step 1: Register for an e-filing account
Visit the Income Tax Department’s website for e-filing your taxes: https://incometaxindiaefiling.gov.in. If this is your first visit, register for a new account. Click on ‘Register Yourself’. Then fill in your name and date of birth.
Your PAN number will be your user ID. You will have to select a password at this stage.
Step 2: Keep your documents ready
Keep your documents ready before you sit down to file your taxes. You will need:
- PAN card
- Form 16
- Investment, insurance, and loan details
- TDS certificates
- Interest statements
You will also need to download Form 26AS from the website. Form 26AS shows how much tax you have already paid. So, you get details of tax deducted at source (TDS), advance tax, and self-assessment tax. Keep this handy. You will need to crosscheck your returns against the total tax figure given here.
To view the form you will have to type your password. Your password is your birth date. You will have to write it in the format ‘ddmmyyyy’.
Step 3: Download the relevant ITR form
There are different income tax return (ITR) forms. These depend on different types of income. Select the right one:
- Download ITR-1 if you earn a salary or a pension. Or if your salary is from property.
- Select ITR-2 if your income comes from capital gains. Do you have more than one house but no capital gains? Then download ITR-2A.
- Download ITR 3, 4, and 5 if you run a business or are a professional.
Step 4: Fill and validate the ITR form
You can fill up the form online. Or you could download the form and save it on your computer. Then fill in the details and upload the form on the site.
Enter your personal and contact details. Check that spellings and details are correct. Refer to Form 16 and Form 26AS while filling in your income and tax information. Provide any other applicable tax-related information. Is your annual income above Rs 50 lakh? Then declare your assets as well.
Add your bank details. This is important if you are going to get a refund.
Finally, click on ‘Validate’. Suppose any information is missing. You will get a reminder to fill it in.
Step 5: Calculate your tax liability
Fill in all your details. Then click on ‘Calculate Tax’. If no further tax is payable, move on to form submission. But suppose you have a tax liability. Then you would have to make a payment.
An online income tax payment through your bank happens instantly. Complete the payment at this point. Then enter the receipt details in your ITR form.
Step 6: Generate and upload XML
Fill in all the details in your ITR form. Then click on ‘Generate XML’. Upload this through your e-filing account.
Step 7: Complete the verification process
You will get an acknowledgement number. Save this if you have submitted the form using a digital signature. What if you did not use a digital signature? Then the ITR V will reach your email.
Now you can verify the ITR online. Or you can send a signed copy of the ITR V to the processing centre in Bangalore. You have to do this within 120 days of e-filing. Once the verification comes through, your ITR e-filing for the year is done!