A Step by step guide to filing your Income Tax returns online

Executive Summary: Filing Income Tax Returns online has been possible for many years. In case of complexities, you can take the help of a professional. If it is a more simple and straightforward filing, you can use the online mode of filing returns by yourself. This year, there are a number of changes introduced by the IT Department, including change in forms, inclusion of bank account details, inclusion of passport number if you have travelled abroad and Aadhar card details and extension in the last date of filing returns. This article discusses these points, in addition to giving you a detailed step by step explanation of how to file returns online. 

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It is that time of the year when everyone is rushing to file their Income Tax returns. Did you know that you can file your returns online by following a simple process? Filing income tax returns online has been possible for many years now. In 2013, it was made mandatory to efile your income tax returns online if your taxable income crosses Rs. 5 lakhs during the year. The Income Tax department has simplified the eFiling process considerably over the years. You may consider taking a professional help to file returns in case of complexities or when there are multiple components of income are involved. For a simple, straight forward filing (e.g. Form 16 based), you can consider filing returns yourself online. It is perceived that eFiling income tax returns is complicated and time consuming. But this is really not the case. We have put together a step by step guide on the different aspects of filing income tax returns online.

What are the forms to be used in various cases?
The following are the forms to be used in different cases:

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ITR 1 (SAHAJ)

For Individuals having Income from Salary & Interest.

ITR 2A

For Individuals & HUFs not having Income from Business or Profession

ITR 2

For Individuals & HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets

ITR 4S (SUGAM)

For Individuals/HUF having income from presumptive business

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ITR 2A was newly introduced this year (Assessment Year 2015-16) for individuals and HUFs with income from salary, house property, income from other sources and clubbed income.

Are documents required to be submitted while filing returns online?
No. It is not required to submit any kind of documents (investment proofs / income proofs) while filing the returns. However, keep these documents safely in case they are demanded at any point in time by the authorities.

What is different this year, while filing returns for Assessment Year 2015-16?
The Income Tax department has brought about some important changes this year, as under:

1. The last date for filing returns has been extended by a month to 31st August this year. 
2. All Bank account details (except dormant accounts) are required to be filled in the return. The bank name, IFSC code, bank account number and type of account (current or savings account) need to be disclosed. A dormant account has been specified as one while has not been operated for the past 3 years. 
3. If you have travelled abroad, you are required to mention the passport number. 
4. If you hold an Aadhar Card, this Aadhar Card number needs to be mentioned in the Income Tax returns.
5. If you are to claim refund, then it has become mandatory to file the returns electronically, even if you are eligible to file paper returns. Further, all refunds are proposed to be made electronically and not by cheque payment.
6. For HUFs, the date of formation of HUF should also be mentioned.
7. If you have claimed capital gains exemption by depositing unutilized amount in Capital gains account scheme, then additional details will need to be disclosed pertaining to transfer of asset and purchase of new asset.
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Points to remember

1. Keep in mind that interest received in savings bank account is taxable above Rs. 10,000 in a financial year. 
2. If you missed submitting the proofs to your company (e.g. Mediclaim premium receipt u/s 80 D, you can include it now while filing the returns).
3. If you have fixed deposits, TDS is levied by bank @ 10%. Based on your tax slab, you may need to pay the additional tax, including penalties as applicable.
   

What is the process involved in filing returns online?

You must file your returns on the Income Tax department’s eFiling website - https://incometaxindiaefiling.gov.in/ 
Let’s look at the steps involved in filing Income Tax returns online.

REGISTRATION PROCESS

Step 1: If you are a new user, you must first register yourself on the site. Click on the ‘Register Yourself’ button on the top right corner in the website.

Step 2: Select the user type applicable to you:

Step 3: Enter the details applicable to you. Remember that having a valid PAN is essential for filing returns. If you do not have this, you should first apply for your PAN. The PAN serves as the login id when you file your income tax returns online. Fill in your other personal details such as name and date of birth. 

Step 4: In the following screen you will need to enter a password, secret question and answer and other personal details such as contact number, email id, address etc. 

proceed to On successful completion of the registration form, the registration becomes successful and you can file your returns.

LOGIN PROCESS
Step 1: Once you are a registered user, you must login to your account to file the returns. Click on ‘Login Here’ at the top right hand corner of the home screen.

Step 2: Login to your account using the PAN as user id, the password set at the time of registration and the date of birth. Enter the captcha code shown on the screen to login to the account.

Step 3: You will be taken to the dashboard screen in your login, from where you can perform the various activities as highlighted below. You can also view your past filings and pending actions, if any.

E-FILING OF RETURNS
Returns can be filed either in the offline mode or in the online mode. Although the details to be updated are the same in both the modes, the mode of uploading the returns differs. The Income Tax website indicates a checklist to be kept ready while filing the returns. This includes salary/income certificates, TDS certificates, savings and deductions certificates, copy of the previous year’s income tax returns, interest and capital gains statements among others. Let’s look at the steps involved in both the modes:

Filing returns in the offline mode:
You will have to download the return preparation software for this purpose. Click on Download ITR given in the left panel after you login to your account. 

There are two ways of filing the returns in the offline mode. It is seen that the return utility can be an Excel Utility or a Java Utility. Click on the appropriate utility pertaining to the ITR which is applicable to you.

Let us look at filing through both the Java Utility and the Excel Utility for ITR 1, i.e.: for individuals with income from salary and interest.

JAVA UTILITY
Step 1: Click on Download under the Java Utility column. The Java Utility zip file will be downloaded on your computer. It must be remembered to have the updated Java version to run the utility. The same page also has details of how to install and configure the utility. 

Step 2: Unzip the file and open the Batch file. You will now see a screen like this:

Step 3: Remember to read the instructions carefully before you proceed to fill the information. Click on Pre-Fill to automatically fill your personal details. You will be asked to fill in your PAN, password, Date of Birth and the option from which source you would like to pre-fill the details (from the previous IT returns or from the PAN database).

Step 4: You will need to verify the details which have been pre-filled. Click on the ‘Personal Information’ tab to check these details. 

Details under the section ‘Filing Status’ is usually not pre-filled. Therefore, these details must be filled in manually.

Step 5: Input income details by click on the ‘Income Details’ tab in the ITR Utility. Remember to fill in all details, including income and the deductions under various Sections. 

Tax Computation is done by the software and the total tax to be paid by the assessee is shown in this tab:

Step 6: The ‘Tax Details’ tab in the ITR Utility pertains to details on the Tax Deducted at Source under various heads and details on the Advance Tax and Self Assessment Tax paid. Usually, some of these details are populated when you use the pre-fill option. The fields which are not filled in automatically should be filled in manually. For this purpose, you should use the Form 16 issued by your employer and Form 16A issued by other deductors (if applicable). Remember to fill in the correct details of TAN and name of the deductor.

Step 7: The next tab ‘Taxes Paid and Verification’ is a summary of what has already been deducted and what should be paid as taxes. The Taxes Paid section in this tab is automatically updated based on the income details and the TDS details.

Step 8: Fill in the details of your bank account. Although this is primarily used to credit refund claims, it is mandatory for everyone to enter the bank details. This includes the IFSC code of the bank, name of the bank, account number and account type. This section also has the declaration, wherein the name, place, date and PAN number should be updated.

Step 9: The last tab ‘80G’ has details about the donations made and the resultant deduction which one can claim. This is an optional section. Input details of the donations you have made in the previous year which are eligible for benefits. 

Step 10: When you are done filling all the details, you can click on ‘Preview’ to view the complete returns form.
If you wish to save your work and proceed later, you can click on ‘Save Draft’. This means you can save the unfinished form and complete it at a later time. However, if you have saved the form as a draft and wish to work on it at a later time, remember that simply clicking on it will not open it for you. You will need to open the ITR Utility and click on ‘Open’ and select the file from the location where you had saved it in the first place.

Step 11: You can then click on the ‘Save’ tab to generate the XML file. You will be asked the location where you wish to save the file. 

Step 12: A file with the extension of .xml will be generated and saved on your computer. Note the location on your computer where this file is saved, as this needs to be uploaded on the E-Filing website.

Step 13: To upload the xml file, you will need to login to your account on the eFiling website and then click on ‘Upload Return’ at the left panel of your screen. You will be directed to the screen as shown below. Now enter the ITR form applicable to you and the Assessment Year for which you are filing returns. Click on ‘Choose File’ to upload the XML file which you had generated in Step 11. Select if you wish to digitally sign the return or not. If you have a Digital Signature, then you can select ‘Yes’. Otherwise choose ‘No’ and submit the form.

Step 14: On clicking Submit, you will get a message on the screen which indicates successful filing of your Income Tax returns. Simultaneously, you will receive an email notification as well on your registered email id.

Step 15: When you sign the form digitally, the process of filing returns stands completed. However, most people do not have a digital signature. In this case, you should take a printout of the return, sign it and send it by post to the address mentioned in the form within 120 days of filing the return. 

EXCEL UTILITY

Step 1: Click on Download under the Excel Utility column. The Excel utility zip file will be downloaded on your computer.

Step 2: Unzip the file and open the excel Return Preparation Software (hereafter referred to as file). The ‘Macros’ needs to be enable in your excel software for all the commands to work. Remember to do this before you begin to fill the form.

Step 3: The cells marked green in the file will need to be manually entered. This includes personal details, income details, the tax deducted at source and taxes you have paid. The Form 16 issued by your employer, TDS certificates and other statements which have your income details for the year can be used as the basis for filing the details.

Step 4: After details are filled in, click on ‘Validate’ in the right panel. This will make sure all the fields are entered. This needs to be done for each sheet.

Step 5: Click on the next sheet and fill in the details of the Tax Deducted at Source by your employer and other third parties, if any.

Step 6: The third sheet on ‘Taxes Paid and Verification’ should be filled with bank details (for refund, if any), and declaration. Remember to fill in other the green coloured cells as other cells are automatically filled.

Step 7: The last sheet on ‘80G’ pertains to any donations you have made under this section, which is eligible for deductions. There are different types of donations which are entitled to different deduction levels, and remember to fill in your details at the appropriate place.

Step 8: Once all the details are filled, return to the first sheet and click on ‘Generate XML’. Remember that all mandatory fields should be filled in and the details need to be correct. Double check your entries before generating the XML file. 

Thereafter, follow Steps 12-15 as given above when you file the return using the Java Utility. 

Filing returns in the online mode:
The ITR can be filed online as well, by filling in details online instead of generating an xml file offline as given above. However, this is possible only in the case of form ITR 1 and ITR 4S. This option also allows pre-filling of details as available under the Java Utility.

Step 1: Click on Quick e-File ITR from the left panel after you login to your account. Fill in your ITR Form name, assessment year and the option of how you want to pre-fill the return. Also choose the option of whether or not you want to digitally sign the return. 

Step 2: This brings you to the next screen, which has the instructions to fill the form online. The tabs are the same as how they are under the Java Utility software. It is always recommended to periodically save your work by using the ‘Save Draft’ tab, as you will be working online and this is riskier.

Step 3: Check the ‘Personal Information’ tab to verify the details which have been pre-filled. Again, the section pertaining to Filing Status may not be automatically updated, and you will need to update this.

Step 4: Fill in the ‘Income Details’ tab with all your income particulars and deductions under the various sections. On entering the income details, the tax computation is automatically carried out and updated. 

Step 5: The tab ‘Tax Details’ has details of the TDS details which needs to be updated manually if it is not pre-filled. 

Step 6: ‘Taxes Paid and Verification’ tab gives a summary on the taxes which are payable, taxes which have already been paid and the excess to be paid or refundable, as the case may be. This tab also needs to be updated with bank details and the declaration. 

Step 7: On completing all the details, check if you have entered everything and if all the information is correct. Then click on ‘Submit’ to submit the ITR online.

In all the three modes given above, the E-Filing process gets completed only when you digitally sign the form or send the form physically to the IT Department. Therefore, simply clicking the ‘Submit’ button is not sufficient. Again, you must ensure that your form reaches the IT Department before 120 days of filing the return. The IT Department sends you an acknowledgement for receipt. If you do not receive this, then you should send the form again.
How To Retrieve A Return That Has Been Already Filed  -
1. Login to e-Filing website of Income Tax Department, go to My Account >> E-filed Returns/Forms.
2. Click on Acknowledgement number of the year you want to see, A Pop up will open with the options -.

• ITR-V or Acknowledgement (Option visible for returns verified only)
• XML
• ITR/Form

3. Click on any of the options. The relevant document will be downloaded. It can be opened by typing in the password. The password is a combination of PAN in small letters and date of birth or date of incorporation (As applicable) in ddmmyyyy format.  For example, if the PAN is AAAAS1111A and DOB 01-12-1982, then the password will be aaas1111a01121982​.

E-Filing is not as complicated as it looks. With more assessees coming under the E-Filing umbrella every year, it is expected that this process will be simplified further.