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January 27, 2023

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How to File ITR Online: Step-by-Step Income Tax Return Guide

Filling of e-filling ITR online not only saves time but also helps in organising the tax-related documents. The e-filing portal provides an option to taxpayers to prepare and file their returns through guided steps and pre-filled data too, which will only be permitted if they are eligible. It is still important to prepare the appropriate ITR form, fill in requisite income information details and tax information details, claim all the eligible deductions, and verify the return.

Here is the process in simple steps.

‍What is an Income Tax Return?

The Income Tax Return (ITR) is an income tax form that details the income earned by the entity, deductions taken, taxes paid, and the taxable liability or tax refund of the income tax department. May comprise salary, professional or business income, house property income, capital gains, interest income, and other income. Ensure the following: Joy has PAN, Aadhaar details, bank information, details of deductions (where applicable), details of other income, and Form 16 details, AIS, TIS, Form 26AS, etc. handy before filing.

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

Log in to the official portal of the Income Tax Department with your credentials. New users must register first. Continue by maintaining your PAN and validating your bank account in case you are expecting a bank return. It is suggested to link Aadhaar and PAN.

Step 2: Select the Assessment Year and Filing Mode

Click on e-File > Income Tax Returns > File Income Tax Return. Please specify the assessment year you wish to file and pick online from the filing mode. The assessment year for income from FY 25-26 is FY 26-27. A saved return can generally be resumed.

Step 3: Choose the Correct ITR Form

Selecting the right form is critical. ITR-1 is generally for eligible resident individuals with specified income sources and within prescribed limits. ITR-2 is for the residents of any individual or any HUF that has income from sources like multiple properties, capital gains from investment, multiple houses, etc but doesn’t have business income or professional income.

If the taxpauyers involve in his busines and/or profession, then he has to use ITR-3; in case of presumptive taxation, the taxpayers have to use ITR-4 under certain sections. Eligible based on income, residency, assets, and conditions. If unsure, use the portal’s ITR identification tool.

Step 4: Review Pre-Filled Information

The portal can display pre-filled information such as personal details, salary, TDS, bank accounts, and other reported income.

Check this information against your Form 16, AIS, TIS, Form 26AS, bank statements, and investment records. Review it because errors can affect your tax calculation.

Step 5: Enter Income and Deduction Details

Confirm or enter income under the applicable heads, including salary, house property, capital gains, business or professional income, and other sources.

Then enter eligible deductions and exemptions according to your chosen tax regime and applicable rules. The new and old tax regimes have different provisions, so compare them carefully before making your selection. The portal then calculates taxable income and tax liability.

Step 6: Check Taxes Paid and Tax Payable.

Recognise the details of TDS, TCS, advance tax and self-assessment tax. Compare them with Form 26AS and AIS.

The portal will show whether you have additional tax payable or a refund due. Pay any required tax before submission and check that the refund bank account is validated.

Step 7: Preview and Submit the Return

Ensure all income, deductions, bank information and tax payments have been reviewed along with the tax regime.

Use the portal’s validation or preview feature to identify errors. Correct issues and submit electronically.

Step 8: Verify Your ITR

Submitting the return is not the final step. You must verify it using Aadhaar OTP, bank or demat account, net banking, or Digital Signature Certificate where applicable.

Complete verification within the prescribed period.

Step 9: Save Acknowledgement and Track Status

Once successfully verified, download/print the ITR acknowledgement. Check the status of the e-filing return on the ‘e-filing portal’ for further updates.

Common Mistakes to Avoid While Filing ITR Online

Some common mistakes include selecting the wrong ITR form, missing income, mismatching with AIS or Form 26AS, entering ineligible deductions in the form, failing to enter bank details, and forgetting verification.

For those who are earning business income, proper invoice/expense keeping, payment tally, etc. during the year will minimise the risk of missing important information while preparing ITRs in the year.

Conclusion

Online filing of ITR becomes easy after preparing ITR documents, selecting the appropriate ITR, verifying the pre-filled information, reporting all relevant income sources, and e-verification. An NI before submission will avoid errors & delays. Keeping good books for your business also makes compliance with GST and tax easier. The ability to swipe aids small businesses with the administration of billing, recording, payment, inventory, and invoices.

Don’t worry about business billing and accounting hassles anymore; ease the troubles with SWIPE! Now create invoices, maintain perfect records, and spend less time dealing with paperwork. Get started with SWIPE today.

FAQs

1. Can I file my ITR online myself?

Yes. Filing can be done via the income tax department e-filing portal, with the steps guided and pre-filed information provided for allowed returns.

2. What type of documents are needed to file an ITR?

Common documents include documents showing Aadhaar details, PAN, Form 16, AIS, TIS, deduction details, and other income details. Each individual or business has a different set of requirements.

3. How do I choose the correct ITR form?

It depends on your income sources, residential status, business or professional income, capital gains, and other conditions. The Income Tax Department provides an ITR identification tool.

4. Is ITR filing complete after submission?

No. You must verify the return using an available verification method and keep the acknowledgement for your records.

5. Can I correct my ITR after filing?

Depending on the circumstances and applicable rules, you may be able to file a revised return within the permitted period. Check the current rules on the Income Tax Department portal.

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