Do the Digit Insurance

How to File Income Tax Returns Online?

If your annual income is ₹2,50,000 or above, filing your income tax returns in a timely fashion becomes a mandate. The Income Tax Department has made the whole process online so you can do it yourself, saving up on the cost of compliance.

In this article, we will learn about how to file ITR online.

Ways to file an ITR online

To file your taxes online, you first need to register or sign-in on the e-filing portal.

Steps to login/register on the e-filing portal.

  • Visit  https://www.incometax.gov.in/iec/foportal/
  • Log in or sign in to file your ITR. If you already have an account, click on ‘Login Here.’ In case this is your first time e-filing your ITR, click on the register yourself button.
  • Click on the correct user type. The options available include HUF, individual, person other than individual/HUF, chartered accountants, external agency, third-party software utility developer, tax deductor, and collector.
  • Enter details like current address, permanent address and the Captcha code correctly before clicking on submit.
  • Fill up your basic details. Information like your name, PAN, DOB, contact details will be asked. You will need to use your PAN as your user ID to sign in.
  • Click on the link you received in the mail for account activation.

Steps to e-file income tax returns on the portal

Here is the step-by-step to file an income tax return online.

  • Calculate IT liability payable based on the IT laws.
  • Provide a summary of your quarterly TDS payment of the AY with Form 26 AS
  • Determine the category that you fall under based on the IT Department definitions. Choose your ITR accordingly.
  • Visit  https://www.incometax.gov.in/iec/foportal/
  • Go to the download section and click on ‘IT Return Preparation Software.’
  • Choose the assessment year and download the offline utility. You get two download options to choose from - MS Excel or Java utility file.
  • Fill with relevant information about your assessed income, payable tax, and refunds receivable after downloading the file.
  • Click on ‘Validate’ to ensure all mandatory fields have been filled.
  • After you are done validating, select the ‘General XML’ button to convert your file into an XML file.
  • Log in to the ITR e-filing website with your user ID and password. 
  • From the main menu, go to the e-file option. Take your cursor there for a drop-down to appear. Select the income tax return option.
  • Fill all fields with relevant information required like PAN, ITR form number, assessment year and submission mode. Click on submission mode; a drop-down will appear. Choose the upload XML option.
  •  Upload your XML file you just filled by clicking on the continue button.
  • Submit and select a mode of verification from the list. You can choose from options like EVC, Aadhaar OTP, etc.

This is how you can get ITR online.

Documents needed while filing ITR

Now that you have understood how to file ITR online, here are the documents you may need for successful filing-

  • PAN card
  • A copy of the Aadhaar card
  • A bank statement/ passbook 
  • Income tax portal login ID and password

Advantages of filing ITR online

Filing your ITR online comes with several benefits. Let's have a look at them-

  • Prompt processing- The acknowledgement generated for filing your ITR is quick. You also get refunds faster than when you file your returns on paper.
  • Higher accuracy- The filing software is built-in with validations, and seamless electronic connectivity minimises chances of errors to a great extent. Paper filing cannot identify these errors. Moreover, when the data is being transferred from paper filing to the electronic system, the person entering such data may also make an error.
  • Ease of access- E-filing can be done anytime and from anywhere as it is online and offline. So, you can also do it from the comfort of your home.
  • Confidential- The online filing offers better safety and security as your data is inaccessible to other people.
  • History- You can easily access your older records while filing a return. This data is kept secure.
  • Proof of receipt- You get a confirmation of filing instantly, and it is also sent to you via mail on your registered mail ID.
  • Easy fund transfer- You get the option to file now and pay later. You can also choose the day when your taxes will be debited from your account.

These are some of the benefits you must know after learning how to submit income tax returns online.

Steps to download filed ITR online

Your search does not end merely at how to file income tax returns online. You will also need to verify it. Here are the steps – 

  • Visit income tax India’s official website and log in.
  • Select ‘View Returns/ Forms’ options to view your e-filed tax returns.
  • Click on the acknowledgement number to download your ITR-V. You can also e-verify your income tax returns.
  • Select 'ITR-V/Acknowledgement' to begin the download process.
  • Print, sign and send the document to CPC Bengaluru within 30 days of the acknowledgement issue.

Following the above steps should answer your question regarding how to do ITR filing online.

Check your refund status

Once your refund has been determined, you can check it from the -

Income tax e-filing portal

  • Visit the income tax e-filing portal.
  • Log in to your account by putting in the user ID, password, entering a Captcha and then clicking on login.
  • Click on the “View Returns / Forms” option.
  • Choose income tax returns in the appropriate option box and then choose the relevant assessment year. Click on submit.
  • The latest income tax status appears at the bottom of the screen.

NSDL portal

  • Visit the NSDL website to check your refund status.
  • Enter your PAN, AY and the Captcha, then click on submit. You will be redirected to a page where your refund status is displayed.

Now that we have a clear idea of how to file IT returns online, you must do so diligently on time.

Frequently Asked Questions

Till when can I claim my refund?

You can only claim your refund if your returns are filed. The time limit of returns and claim refunds is the same, which is the last day of the fiscal year.

Why is my IT refund delayed?

There can be various reasons for IT refunds being delayed like manual filing, undeclared income, etc.

What happens if I don’t file ITR?

You will attract a penalty of ₹10000 if you don’t file ITR, given your income is above ₹5 lakhs. Below that income, the penalty you pay is ₹1000 for not filing ITR. Deliberate tax evasion can also lead to imprisonment. Exceptions can be made given you have a genuine reason not to file ITR on time.