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A Step by Step Guide to File an Income Tax Return Online in India

In 2018, according to The Economic Times, the Income Tax Department of India was credited with around 5.8 Crore tax returns, noting a 61% increase from the last fiscal year. Additionally, to widen the base of taxpayers in the economy, IT Department also sent out around 1.8 Crore emails, urging individuals to pay their taxes and file returns based on their tax history.

If you are filing your tax returns for the first time, this process might appear to be quite complicated. However, the following step by step guide of how to file an income tax return online can simplify it for you.

But before learning how to file your returns, there are a few things you should know first.

Importance of Form 16

This form is crucial while filing returns as it declares tax deduction at source or TDS on your salary by your employer. It is issued according to provisions put forth by the Income Tax Act, 1961.

Apart from TDS, this form also includes details of your salary breakup of the respective financial year.

The form also contains the following details –

  • The year of assessment.
  • Name, address and PAN of the individual.
  • Name, TAN and PAN of the employer.
  • Details regarding tax deduction.
  • The acknowledgement number or challan number of the deposited tax amount.
  • Net salary, gross salary, allowances, tax deduction details, tax-saving investments, etc.
  • Surcharge amount.
  • Cess levied.

Thus, the form contains all the details required to file the income tax returns. However, if you have to report income from sources excluding your salary, you will have to refer to Forms 16A and 16B.

Details of how to file an income tax return online

Before filing your IT returns online, you need to get registered with the income tax website. To log in to the website, you will have to use your PAN card number as ‘user ID’ and your date of birth as password.

Next, you will have to generate Form 26AS. You can download this form from the NSDL-TIN website. This form will provide you with various details about tax deduction at source of your income, including salary, rent and other returns on investment.

Next, you will have to download ITR-1 form from the IT website if your income is below Rs. 50 Lakh for the financial year. If your income is more than Rs. 50 Lakh, you need to download form ITR-2.

Next, you will need to follow the steps below to fill your ITR forms with reference to Form 16

  • Your name, address, PAN, date of birth, phone number and email ID.
  • The details that are unreported by your employer and other pertinent information can be gathered from Forms 26AS and 16.
  • The details of tax deduction including date, amount, etc.
  • The details of financial institution.

After you have filled the ITR form, you need to go through the steps below to learn how to file an income tax return online –

  • After you have filled the ITR form, you will need to fill out your income details and validate the information with the necessary documents.
  • Once you have submitted the income details, the website will automatically provide you with tax liability. If the tax liability is not calculated automatically, you will have to insert the details manually.
  • After the amount calculation, a tab will show the tax amount already paid, to be paid or to be refunded. In this step, you will need to fill out the details of your financial institution.
  • Next, recheck these details carefully and upload the file.
  • After you have uploaded the file, the ITR-V will be generated and sent to your email ID. This is the document that verifies that your ITR filing is successful.

However, before you file your income tax, it is important to clear your tax payments. Nowadays, tax payments have been made even easier with credit cards.

For instance, you can use your Bajaj Finserv RBL Bank SuperCard to make your income tax payments easily. Additionally, you can also avail various benefits from this card. For example, the NBFC brings pre-approved offers that can help you to avail their services more easily. These pre-approved offers are available on several financial products, including credit cards. You can check your pre-approved offer by providing your name and phone number.

Apart from these advantages, you can also opt for a quick personal loan on this credit card.

So make sure you have cleared your tax payments before filing income tax returns. Also, make sure you follow the guide of how to file an income tax return online within the stipulated date. If you don’t do so, you can be penalised and charged a hefty fine.

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