The Indian government has made it mandatory for taxpayers to file their ITR online to avoid complications. However, the income tax return (ITR) filing process can be tedious and time-consuming if you do not prepare in advance.
And the good thing is that the Income Tax Department keeps coming up with new and easier ways to make filing your income tax return (ITR) as easy and convenient as possible.
One such recent addition was the ability to file your ITR online directly, instead of having to do it via offline methods. This article will cover the details of how to file ITR online in three easy steps, so let’s get started!
What Is ITR in India?
The ITR, or income tax return, is an important document every person with a taxable source of income must submit each year. The Indian government uses data gathered through these returns to determine how much personal and corporate taxes it will levy on citizens.
If you’re not a salaried employee and own any investment assets, such as mutual funds or stocks, chances are good that you have to file an ITR.
How to File ITR Online in India
If you live and work in India, then you have to submit an Income Tax Return every year. However, don’t worry if you are not sure about how to do it. The process is very simple if you follow these 3 simple steps:
Step 1: Make sure you have all your details handy.
It’s important to have all your relevant details handy while filing taxes online. These could include your PAN number, salary details, TDS certificates, and information about investments or interest earned.
You should also have a copy of last year’s returns handy, as that will give you some idea of how much tax you need to pay. If you don’t have copies of those returns, don’t worry—you can still download the copies of them from the income tax website.
Step 2: Select the appropriate ITR form based on income type.
Depending on your income type, you will need to fill out different ITR forms. We’ll discuss more of this below:
- ITR-1 is for resident individuals with income from salary, one house property, other sources (interest on bank/post office deposits, income from winning horse races or lotteries etc.), and agricultural income of up to ₹ 5,000.
- ITR-2 is for Individuals or Hindu Undivided Families who are not eligible to file ITR-1 and don’t generate income from profits or gains from profession or businesses.
- ITR-3 is to be filed by Individuals or Hindu Undivided Families with income coming from gains or profits from businesses or professions.
- ITR-4 is also called Sugam. It is to be filed by Hindu Undivided Families, individuals, and firms who are residents and have a total income of up to ₹ 50 lacs and have income from profession or business computed under section 44ADA or 44AE and 44AD.
- ITR-5 is to be filed by partnership firm, AOP, BOI, Business Trusts, LLP.
- ITR-6 is to be filed by companies other than those registered under section11of IT Act,1961.
- ITR-7 is to be filed by persons who are required to file ITR under some specific sections of the IT Act,1961. (from section 139(4A to 4F)
Other Important Forms
Here are some other applicable forms to consider:
- Form 15H is to be filed by an individual of age 60 and up to declare claiming certain receipts without tax deduction.
- Form 12BB is to be filed by an employee to his employer to provide particulars of claims for deduction of tax.
- Form 16 is to be provided by an employer to his employee detailing the tax deducted at source on salary for the purpose of computing tax refunds or payable.
- Form 16A is a tax deducted at source certificate issued on a quarterly basis detailing the amount of TDS, TDS payments deposited, and other relevant information.
You can find more of these forms here.
Step 3: Filling in the actual form.
The ITR forms are fairly simple and straightforward documents. Just make sure you fill in all relevant details. You don’t have to fill in every single detail on the form, but you should ensure that nothing important has been missed out.
Also, ensure that you state everything as clearly as possible: miss out on too much information, and it might get rejected!
Important Dates to Remember
If you are doing ITR filing online, make sure to take note of these important dates to avoid penalties:
- 31st of July – Persons not covered under tax audits
- 31st of October – Persons covered under tax audits
- 30th of November – Transfer Pricing cases
Wrapping Up
To ensure that your return is correctly processed, consider the following three steps before starting your online tax return process with the ITR filing portal of the Income Tax Department. But if you find the ITR online filing process a bit challenging, do not hesitate to seek help from chartered accountants online.
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