How to File Income Tax Return Online Step by Step Guide

Filing of income tax return is as important as paying income tax. You pay the income tax on time. The salary has been credited into the account after deducting the tax for salaried persons. But the return is to be filed by you to the income tax department. Here is the guide how to file income tax return online step by step by which you can easily file your income tax return yourself.If you still don’t know which ITR form you have to fill up I would request you to read the article Which ITR form to file AY 2018-19.

You can e file income tax return online by two ways, by yourself or through a tax advisor or agent. I will guide you through the DIY process of filing income tax return. You can file the ITR on or before 31st July.

Who can File Income Tax Return online?

The e-filing of income tax return is done very easily and applicable for following return filers.

  • The individuals/ HUFs who earn more than Rs 5 Lakhs and above.
  • The individuals/ HUFs who have assets outside India
  • A resident who has signing authority of any asset located outside India
  • An income tax filer is required to produce a comprehensive report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.The return filer required to give a notice under Section 11(2) (a) to the assessing officer.
  • A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).
  • A person who claims relief under sections 90 or 90A or deductions under section 91.
  • An assesse is required to produce income tax returns under section 139 (4B) (ITR-7)
  • All Companies

Ways of filing Income Tax Return Online:

There are various ways you can e file your return and verify.

  • You can e-file the return and submit using the digital signature certificate.
  • If you submit without a digital signature the Acknowledgement for ITR V is generated which is to be printed. The hard copy of ITR V is to be sent to Central Processing Cell, Bengaluru after signing on it. You will get 120 days to submit the hard copy after e filing.
  • You can verify the return with alpha-numeric Electronic Verification Code.

The following things need to be kept with you while filing the IT return:

# Form -16:

This document is having the salary details and the TDS deducted by your employer. You will get it from your employer. If your employer has not given till now, you specifically ask the HR or concerned department to issue the Form-16.

Also Read: Income Tax Planning for Salaried Employees FY 2018-19

# Form-16A:

This is the statement from the different organisation who has deducted tax from you such as banks, financial institutions etc.

# Bank Account Details:

You should be ready with all the bank account details you have. If you have more than one account, you need to furnish the details of all the bank accounts. So be ready with account numbers, IFSC code, Branch etc.

# Proof of Investments:

The documents for investments and purchase/sale of property need to be kept with you for record purpose. These documents need not be submitted with ITR but in case of verification from Income Tax Department, you need to show all the documents.

You may also be interested in Top 10 Best Income Tax Savings Options in FY 2018-19.

# House Property Income:

You should have the address of the property, details of co-owners, home loan interest certificate and the name of the tenant in case the property is rented and you receive a rental income.

# Capital Gains:

If you trade in the stock market and having capital gain you need to report it during e filing. The same statement is applicable for mutual funds also. The selling price, purchase price, details of registration, cost of house improvement etc. is required for reporting capital gains in case you have sold house property. Know more about Capital gain tax from stocks, mutual funds and property.

How to File Income Tax Return Online Step by Step:

Step # 1: 

Log in to the Income Tax e filing Portal. The user ID is the PAN of the income tax return filer. If you are not registered to the portal yet register yourself with an email id and mobile number. You need to activate the link via email and OTP via mobile. So provide the email and mobile number which you are using.

How to file income tax return online step by step

Step # 2

View your tax credit statement form 26AS. The tax deducted according to form 26AS should match with the details provided in Form 16.

How to file income tax return online step by step

Step # 3

Click on income tax return assessment year for which you want to fill up the ITR. Download the form which is applicable to you. You can also prepare the return online.

Step # 4

Fill up all the details with the help of Form 16 and click on ‘calculate tax’ to know if there is any outstanding tax. If there is any tax to be paid pay the balance tax and put the challan code.

Step # 5

Save the file as an XML file and save it on computer. If you prepare the return online save frequently otherwise you can be logged out without saving for security reasons.

How to file income tax return online step by step

Step # 6

When you upload the XML file and the portal will ask you about the verification method you want. There are three ways by which you can verify the income tax return, through EVC, AADHAAR OTP and sending the ITR V.

How to file income tax return online step by step

Step # 7

If you select ‘I don’t want to e verify’ the portal will generate ITR-V. You have to take a print out of the ITR V and sign on it. The signed copy of ITR V will be sent to Central Processing Cell, Bengaluru.

However, the return can be verified online in three ways. Once you click on e-verify the ITR the following options will be generated in a pop-up window.

  • Already have an EVC to e-verify my return.
  • I do not have an EVC and would like to generate EVC to e-Verify my return.
  • I would like to generate Aadhaar OTP to e-Verify my return.
AADHAAR OTP:

Select the AADHAAR option and you will get an OTP on your mobile. You need to enter the code and click on submit. You get the message that the Return is successfully verified. Now download the acknowledgment and save in computer for future use. The acknowledgment is also sent to your registered email id. Remember, your mobile number should be already linked with AADHAAR.

Electronic Verification Code:

When you want to verify the return with electronic verification code select the option 2 –‘ I do not have an EVC and I would like to generate EVC to e-Verify my return’.  After clicking this you will have two options again. You can generate the EVC through net banking or by using registered Email ID and mobile number.

Net Banking:

Click on the list of the banks in which you have net banking facility. The internet banking portal of that will be opened. You logged in to the internet banking with your user id and password. Go to the income tax e filing tab, click and verify. The income tax e filing tab location is different for different banks.

Registered Email ID and Mobile Number: You can generate an EVC with your registered email id and mobile number. This is applicable for income over Rs 5 lakhs and does not have a refund. Verify the return with 10 digit alpha-numeric EVC in the space provided and click on submit.

You can also generate EVC by also giving your bank account details or Demat account details.

Conclusion:

The income tax department has simplified the return filing process and make the jobs easier for return filer. They are also continuously trying for making the process completely digital. The Income Tax Department has already made it mandatory to file income tax online for the income above Rs 5 lakhs.

There is the number of ways by which you can e verify the return which also minimizes the taking of prints and sending them to CPC.

Share your experience while you filing the return. Please also share the article with others.

3 thoughts on “How to File Income Tax Return Online Step by Step Guide

  1. Thanks for sharing this informative article at this time.
    I really face all these issues while doing the filing of Income Tax. Thanks for the help.

  2. Really you have worked hard and explain well. I have also written on the same topic and I like to add your reference in my article.

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