Step by step guide on How to file income tax return online in India

Updated on 29 Jan 2020.

If you are an individual earner and depending on someone to fill your income tax return, then I would suggest you to give it a try yourself. Because you can’t hand over your personal and confidential information to anyone (I know there are reputed people who fill ITR on your behalf or maybe your close friend is a tax expert).

If you want to file Income Tax Return yourself, then fill your ITR online. This is the best way because you can do it from the comfort of your home, you just need a PC or laptop and an internet connection. Rest is the financial documents that you will require while filing the return.

It’s as simple as filing any online application. I am sure after reading this article, you will be able to fill ITR without any hassle.

Also read – Income tax deductions under section 80

Benefits of filing Income Tax Return Online?

1. The flexibility of Time and Place

You can e-file your tax return wherever and whenever you want. In the office or home and that too anytime 24×7.

2. Pre-Filled Information

All your personal information is fetched online at one click.

3. Inbuilt Tax Calculator

Inbuilt Online Tax Calculator is simple and efficient to ascertain the tax liability together with interest or penalty if any.

4. Online Record of ITR

Filing ITR Online avoids the hassle of keeping a physical copy of ITR and acknowledgment form.

5. Acceleration in Tax Refunds

Tax Refunds are swift through filing an income tax return online.

Different types of Income Tax Forms

Before filing Income Tax Return you must know in which ITR Form you should fill your return. Mostly it is ITR-1 (SAHAJ) but still, you should be aware of other forms too.

There are 9 different Income Tax Return Forms available for reporting incomes under various heads based on the sources of income.

ITR-1 (Sahaj)

ITR-1 is the simplest form and mostly used by the salaried people. This form is used for reporting income from Salary/Pension, income from residential property – single house and income from other sources excluding winning lotteries and horse races.

In case you own more than one house than you have to file ITR-2 or ITR-2A.

Similarly, if there is a brought forward loss from the last year or your income from agricultural activities is more than Rs.5,000/- in the previous year, than use ITR-2 or ITR-2A.

ITR-2

ITR-2 is for the assessee having income from Salary/Pension, income from more than one house property, income from other sources and income from Capital Gains.

Further, the assessee having income from foreign sources or is a signing authority in a foreign bank or possess a foreign asset or financial asset outside India is also required to file ITR-2.

ITR-3

ITR-3 is applicable for assessee being individual or HUF (Hindu Undivided Family) who is a partner in a firm but does not have income from business or profession or carry business under proprietorship.

ITR-3 form can be filed where taxable business income is only from the salary, interest, commission, remuneration or bonus receivable from the firm as a partner.

ITR-4

ITR-4 is applicable for the assessee having income from a business or profession. This form covers all kinds of businesses and professions irrespective of any income limit.

A special case of an assessee who has a professional service business like consultancy, architect, freelancer, and their income is calculated on the presumptive basis u/s 44AD and 44AE.

Assesse can also report his income from salary, house property, lottery winnings, capital gains, speculative income i.e. horse race in ITR-4 together with the Business Income.

ITR-5

ITR-5 is applicable for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), AJP (Artificial Judicial Person), Co-operative Societies and Local Authority.

ITR-6

ITR-6 is solely meant for the companies claiming exemption u/s 11 which states exemption of income from the property held for charitable or religious purposes.

ITR-7

ITR-7 is to be used by Trusts and Non-Profit Organizations fall under section 139 4(A), section 139 4(B), section 139 4(C) and section 139 4(D).

Also read – How to check income tax refund status online.

How to file income tax return online

You can fill your ITR using the income tax department’s e-Filing portal.

Step 1. Prepare the documents

You need to fill details of various documents during Income Tax Return filing. Keeping all documents at hand will streamline your e-filing process. Documents that you require during ITR filing are-

• PAN card
• Aadhar card
• Bank account details
• Form 16
• Details of investments

You can also click on the link if you want to know about the Income tax slab for the assessment year 2020-21.

Step 2. Login to ITR e-filing account

Open the website www.incometaxindiaefiling.gov.in. Create your account by clicking on “Register Yourself” if you are a first-time filer otherwise login to your e-filing account.

Step 3. Fill the details

#1. Click on Filing of Income Tax Return as shown below.

#2. Fill the details like assessment year, ITR form number, filing type, and submission mode.

#3. You can select your bank account where you want to receive the tax refund. Another option here is you can click on the check box as shown below to ITR fill form in Hindi if you prefer to fill in hindi (extremely beneficial for non-english applicants.)

And click on Continue.

#4.  You will see a screen as below. You will get all the instructions and different useful buttons here. You can click green arrow buttons to move between different tabs during the ITR filing.

Every time you complete your information input and verify the details, click on ‘save draft’ to save the information. Then click on the green arrow button to move to the next tab.

You can also click on a particular tab to move directly to that tab. For example, if you want to check under ‘Tax details’ tab, you can simply click on the tab and it will open in front of you.

#5. After reading all the instructions, click on ‘Part A General Information’ tab or green arrow button and fill all the required details. After filing the details, click on Save draft.

Go to next tab.

#6. In ‘Computation of Income and Tax’ tab, you will your income details, deductions, and other requisites.

#7. In the ‘Tax Details’ section, fill your TDS details as per your Form-16.

#8. Here all the information will be displayed automatically based on what you have filled in previous tabs. You can fill if something is missing but don’t change auto-filled boxes. Select your bank account and click on ‘save draft’.

Next two sections are regarding your donations if you have done in the financial year u/s 80G and 80GGA. Fill the required information.

#9. Verify all the tabs once again with your documents and Form-16. Click on ‘Preview and submit’. You will see the final preview of your ITR return. Click on ‘Submit’ again.

#10. Done.