How to File ITR Online – Step-by-Step Process

Filing an Income Tax Return (ITR) online, also known as e-filing, is a mandatory process for individuals and businesses earning taxable income in India. The process is simple and can be done through the Income Tax Department’s official website. Here’s a detailed step-by-step guide on how to file ITR online.

Who Should File ITR?

ITR filing is mandatory for:

• Individuals with an annual income above ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior citizens)as per old tax regime.
• Companies and firms, regardless of income.
• Individuals claiming tax refunds.
• Individuals who have earned income from foreign assets.
• Residents with assets abroad or foreign income.
   

(Please note that the data is as on date and may vary ahead. Thereby, we kindly recommend you to seek advice from tax advisor for latest tax regulations.

Documents Required for ITR Filing (Please note that this is an illustrative list)

1. PAN Card
2. Aadhaar Card
3. Form 16 (For salaried individuals)
4. Bank Account Details
5. Investment Proofs (PPF, ELSS, LIC, etc.)
6. TDS Certificates (Form 16A, Form 16B, Form 26AS)
7. Income Proofs (Salary, rental income, capital gains, etc.)
8. Loan Repayment Proofs (Home loan, education loan, etc.)

Step-by-Step Guide to File ITR Online

(For updated process and guidance, you are requested to seek advice from tax advisor)

Step 1: Log in to the Income Tax e-Filing Portal

• Visit https://www.incometax.gov.in
• Click on ‘Login’ and enter your PAN, password, and captcha code.

Step 2: Select the ITR Form

• Choose the appropriate ITR form based on your income type:
• ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh.
• ITR-2: Individuals with capital gains or foreign income.
• ITR-3: Professionals and business owners.
• ITR-4 (Sugam): Presumptive income scheme taxpayers.

Step 3: Fill in Your Income Details

• Enter salary details (as per Form 16).
• Include other income sources (interest, rental income, capital gains).
• Declare tax-saving investments under Section 80C, 80D, etc.

Step 4: Validate Tax Calculation

• The portal auto-calculates tax based on your inputs.
• Check for any tax dues or refunds.

Step 5: Upload and Verify Details

• Cross-check details with Form 26AS (TDS details).
• Ensure all income and deductions are accurately mentioned.

Step 6: E-Verify and Submit ITR

• Choose an e-verification method:
• Aadhaar OTP verification
• Net banking
• Demat account
• Sending a signed ITR-V to CPC, Bengaluru
• Click ‘Submit’ to complete the filing.

How to Check ITR Status?

1. Log in to the e-Filing portal.
2. Click on ‘View Returns/Forms’ under ‘My Account’.
3. Enter your ITR acknowledgment number.
4. Check the status (Pending, Processed, or Defective).

Mutual Fund schemes Investments and Tax Benefits

Investing in mutual funds schemes can be a tax-efficient way to save on taxes. Equity-Linked Savings Schemes (ELSS) offer tax benefits under Section 80C of the Income Tax Act. By investing in these schemes, you can reduce your taxable income and save on taxes.

ELSS are a type of schemes that primarily invests in equities and equity-related instruments. These funds are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. This means that investments in these schemes can help reduce your taxable income by up to ₹1.5 lakh per financial year if you are eligible as per applicable norms of Income Tax Act, 1961, as per applicable tax regime and latest tax legislations. Unlike other mutual funds schemes, ELSS come with a mandatory lock-in period of three years, which means you cannot redeem your investment before this period. (You are recommended to seek advice from professional before you take any/refrain from any action).

Filing ITR online is a seamless process that ensures compliance with tax laws while making you eligible for tax refunds and financial benefits. Ensure accuracy in details and timely submission to avoid penalties.

Additional links

What is a Mutual Fund? - Beginner's Guide to Investing

AMFI - Introduction to Mutual Funds

Know everything about SIP

Should you invest in ELSS under the new tax regime?

ELSS Fund – Tax Saving Mutual Fund