How To File ITR(Income Tax Returns) In India
Most people who have income must file an income tax return, also known as ITR. Filing tax returns in India is a fairly simple process for many people. You can submit ITR online for free and easy through the official website of the Department of Income Tax or third-party websites for filing IT returns. The deadline for online returns this year is August 31, 2019. The process for filing income tax returns is different for different people in India.
Before we begin the part where we tell you how to file the tax return online in India, let’s take a quick look at what ITR should file.
Which Income Tax Returns To Submit
For people seeking to file income tax returns in India, there are four types of income tax return (ITR) forms to consider. These are:
ITR-1: salaried persons with incomes below Rs. Rs 50,000 per year must submit ITR-1. Here you are allowed to declare income from house property, agricultural income up to Rs. 5,000 and income from other sources.
ITR-2: Normally, ITR-2 applies only to people whose income is above Rs. 50 lakh, but if you have to report capital gains (such as mutual fund income), you must submit ITR-2. There are certainly other types of income, such as foreign income, properties of several homes, etc., which are included in this.
ITR-3: In addition to the types of income mentioned in ITR-2, if you have a business or professional income, then you must submit ITR-3.
ITR-4: if all your sources of income are listed in ITR-1 but your total income is above Rs. Rs 50,000 per year, then you must submit the ITR-4.
This is the basic information you need to decide which ITR to archive, but be sure to verify this again. It is better to check with a public accountant if you are unsure or if you have income types not mentioned above.
This guide will cover the presentation of income tax returns for salaried persons, specifically those that fall under ITR-1.
How to submit ITR online
- Now that you know what type of ITR to submit, you can do it easily and for free on the electronic filing website of the Department of Income Tax. Follow these steps.
- You must first create an account on the IT department website. You can click here to do so. For most people, the type of use must be Individual. Simply follow the instructions on the screen and complete the necessary details. Once you have created your account, follow the next step.
- Go to the electronic income tax filing website and log in to your account.
- Click Filing Tax Return.
- On the next page, you must select your evaluation year. This can be a bit confusing, but this is what you need to know: the evaluation year is the year after the financial year of your statement. For example, if you are submitting an IT statement for the 2018-19 fiscal year, the evaluation year is 2019-20.
- Next, select the ITR Form Number, the File Type (it must be an original/revised return) and then the Shipping Mode. For the latter, we select Prepare and send online.
- Then select Continue.
- This year, the income tax department has made it really convenient to file IT returns online by completing a large amount of information about your income. Therefore, if you are a salaried person with no other source of income and declared your investments and expenses (such as rent, PPF, etc.) to your company, you may not even have to complete any data. In our case, the form was almost full and all we had to do was enter our bank details.
- To do this, click on the Tax and Verification tab to add your bank details. Now scroll down to D21. Add bank account details, information and click Add. This is mandatory and will help you get reimbursement of income tax deposited in your account. Once you are sure they are correct, scroll down and click Save Draft. Next, review each tab starting with general information.
- Now click on the Revenue Details tab. This is where all your salary information will be completed. If this is not the case, obtain Form 16 from your employer and manually enter all the details of your income.
- Now scroll down to section B5. Total gross income. Here you can check if all deductions were entered correctly. Things like life insurance premium, PPF, NPS investments, health insurance premium, etc. They must be completed here. Don’t forget to check C15. 80TTA Interest on bank savings accounts and key interest earned throughout the year of your savings accounts.
- Finally, verify C18. Total deductions and C19. Total taxable income. Once you have made sure they are correct, be sure to scroll down and click Save Draft.
- You should check the 80G tab now and declare charitable donations if you have made any.
- Again, check all the tabs and see if there is information you need to add or if something was lost. Once all this is done, go to Taxes paid and verification and scroll to the bottom.
- Click I would like to verify electronically and then click Preview and Submit.
Now click on OK in the confirmation box.
- The next page will show a preview of your entire ITR, so read everything carefully and make sure all the details are correct. Then click on send.
- You will now see a pop-up window where you can select how you want to verify your IT return electronically. Select Aadhaar OTP if your Aadhaar and your phone numbers are linked. Otherwise, select Net Banking. Then click Continue.
- Now click on Send.
Congratulations. If this process was successful, you will see this confirmation message: “Your return has been loaded successfully.” If you have not verified it electronically yet, but you can do so up to 120 days after submitting your IT statement. It is a simple process through net banking and even simpler through Aadhaar OTP. Simply log in to your electronic IT submission account and click on My Account> e-Verify Return> e-Verify. Now follow step 17 above and that’s it.