E-filing of Income Tax Return is very easy provided you follow the right steps.
Before we proceed to understand the steps involved in e-filing of Income Tax Return (ITR). Let’s first understand some of the key points regarding ITR filing. First, if your income is more than Rs. 5 lakh a year than it is mandatory for you to file Income Tax Return electronically or online. Now, let’s come to the ITR form which we need to use while filing of Income Tax Return.
All salaried individuals or pensioners with one house property and interest income are supposed to use ITR 1 or ITR 2 as per the case may be.
Now, ITR-1 is for individuals with income from following sources:
- Income from salary/pension
- Income from one house property (There must not be losses brought forward from previous years.)
- Income from other sources (excluding income from lottery & horse racing)
- In case, the income of spouse, minor child gets clubbed to the income of assessee then ITR 1 can only be used if the clubbed income falls into above mentioned categories.
ITR-1 is not applicable in following cases.
- If the income is from more than one house property
- Income from winnings from lottery or horse race
- If the income from agriculture business is more than Rs. 5000
- If the exempt income u/s 10, 10A, 10AA is more than Rs. 5000
- Income from business or profession
- Losses brought forward from previous years
- If the assessee is claiming relief of foreign tax paid under section 90, 90A or 91
- If the assessee has assets outside India, or is a signing authority of any account located outside India
Now, let’s understand the applicability of ITR-2. ITR-2 is applicable in following cases.
- Income from salary/pension
- Income from more than one house property
- Income from Capital Gains
- Income from other sources
- Income from winnings of lottery or horse racing
- And, in case the income of spouse or minor child gets clubbed to that of assessee then such income can only be clubbed for ITR 2 if it falls in any of the above mentioned category
ITR 2 is not applicable in following cases.
- In case of Individual/HUF (Hindu Undivided Family) the ITR 2 will not be applicable if the total income includes any income taxable under the head “Profit or gain from business or profession.”
- In case of Individuals who are partners of a Partnership firm, the ITR 2 will not be applicable if he has exempt income through share of profit from that firm and at the same time, is not earning any income through interest or salary, etc.
Now, let’s understand the steps involved in e-filing of Income Tax Return.
Step 1: Register yourself at Income Tax Department website which is www.incometaxindiaefiling.gov.in. Your PAN no. will be your user ID.
Step 2: After this, you need to view your Form 26AS which is basically your tax credit statement showing the taxes deducted by your employer and deposited with the Income Tax Department. There must not be any mismatch between the TDS as shown in Form 16 and the one, shown in Form 26AS. Please note that if you continue to file your tax return even in case of any errors, then you will get notice from Income Tax Department later.
Step 3: Now, under the ‘Download’ menu, click on ‘Income Tax Return Forms’ and select the AY 2015-16. Now, download the ITR form as applicable to you.
Step 4: Now, open the downloaded Return preparation Software which is basically an Excel utility. After this, complete the form by filling up all the details as per your Form 16.
Step 5: Now, calculate the Tax payable by clicking on ‘Calculate Tax’ tab. If there is any tax due to you then pay it, and enter the Challan detail in your Income Tax Return.
Step 6: Now, click on ‘Validate’ tab to confirm that the information provided is correct.
Step 7: Now, generate the XML file and save it in your computer
Step 8: Now, at the left panel of the portal click on ‘Upload Return’, and upload the saved XML file after selecting the correct assessment year (AY 2015-16). Here, you will be asked whether you want to digitally sign the file or not. If you have digital signature with you then go ahead and sign it digitally. In case, you don’t have digital signature then select ‘No’.
Step 9: Now, if you see the message about successful e-filing on your computer screen, then it means that the e-filing of your Income Tax Return is complete. There will be generated acknowledgement form called ITR-V which you can download. Please note that, in case you e-file your return without digital signature then you will have to send the completely filled ITR-V (fill it in blue ink only) form to CPC, Bangalore within 120 days of e-filing of your return via ordinary post or speed post only.
Besides Income Tax Department’s website, one can also e-file his tax return using numbers of other websites, currently available. These websites let user easily file his Income Tax Return for a certain fee (generally Rs. 250-300).
Please note that the last date of filing of Income Tax Return for assessment year 2015-16 is 31st Aug 2015.