Steps For E-Filing Income Tax Return (ITR) Online

ITR filing online is an easy process and saves you not only time and energy, but if you file your ITR before the deadline, you can avoid a penalty of up to Rs. 10,000.

Filing income tax online is really easy. All you need is to follow these easy steps:

1. Collect relevant papers: You will need Form 16, salary slips and interest certificates. These documents will help you calculate your gross taxable income as well as give you an idea about the tax deducted at source (TDS) for the financial year you are filing. Forinvestments in mutual funds (MFs), you should ask your fund house to provide you a transaction statement and capital gains statement

1. Download Form 26AS: You should download form 26AS, which holds all the details of tax that has been deducted from your income during the previous financial year. Check the details of the transactions in Form 26AS and correlate them with your TDS certificates to establish accuracy. It is possible to download Form 26AS from the TRACES website. You can use your login credentials from the e-filing website, click on 'My account' and select on 'View Form 26AS' to download this document.

1. Calculate total income: Once you have all the documents, you can calculate your 'total income' by combining incomes from five different heads and factoring in all deductions and setting off losses, if any.

1. Calculate tax liability: After calculating your total income, you would need to calculate the applicable tax rates as per slabs for FY 2018-19 as given in the table below. Once you know your tax liability, deduct taxes already paid through TDS and Advance tax during the year. If there is any interest applicable under Sections 234A, 234B and 234C you should add it to the total tax liability.

   

1. File your ITR: Once you have paid taxes due, you can file your ITR. If you have any refunds due from the Income Tax Department, you can claim them. You should ensure you use the correct form to file your ITR or it may be termed as a defective return.

1. ITR Verification: There are six methods to verify your ITR; five are electronic and one is physical. If you choose to verify your return electronically, there is no need to send any document to the department. However, if you want to verify it physically, you must post your return to Post Box No. 1, Electronic City Post Office, Bengaluru – 560 100.

In the past, income tax return filing was a complicated process. However, it has now been greatly simplified. Efiling income tax is a simple process and income tax filing electronically is also compulsory for most taxpayers. Ensure that you complete your ITR filing before the deadline to avoid paying any penalties.

Now that you know how to file your tax returns, you might want to start thinking abouttax saving and making the most of the available tax deductions under Section 80 C. Equity Linked Savings Schemes (ELSS) are an easy way to invest in stock markets and get equity linked returns while enjoying the lowest lock in period of anytax saving instrument available. Investments in ELSS up to Rs. 1,50,000 can be claimed as deduction during tax filing, saving you a considerable amount of money.