How to E-file Income Tax Returns Online

Most people are unaware who must and who must not file ITRs. People believe that having proof of payment of tax (TDS, Form 16, Challan 280 etc.) is enough to meet tax obligations. Well, the law says different! The Income Tax Act, 1961 makes return filing compulsory for anyone under the following circumstances:

But before you start, check your eligibility criteria:

Here, we give complete step-by-step instructions on how to e-file income tax returns .

From salaried employees to business owners and freelancers to start-ups, filing income tax returns is an essential exercise to be done every year. This used to be a tedious task. But with the introduction of the online Income Tax Return filing option, things have become a lot easier. Now an ITR can be filed from the comfort of your home or office without having to stand in long queues. You can even file returns on the go with this useful income tax app .

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E-Filing Is Compulsory under following circumstances:

E-filing of income tax is mandatory for individuals or kartas of Hindu Undivided Families (HUFs).

E-filing is also mandatory if the individual / HUF being a resident (other than not ordinarily resident) owns assets outside India.

Online filing is indispensable in case an individual / HUF has sought any relief in tax paid outside India under sections 90 or 90A or has claimed deduction under 91.

If an individual is required to furnish an Audit Report specified under sections 10(23C) (iv), 10(23C) (v), 10(23C) (vi), 10(23C) (via), 10A, 10AA, 12A(1) (b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA,92E, 115JB, 115VW or give a notice under section 11(2)(a) it is compulsory for him / her to file an ITR online.

If total income is more than 5 lakhs or you have claimed any income tax refund then you are required to e-file your taxes. (Not applicable in the case of super senior citizens).

E-filing is mandatory for all companies.

It is also mandatory for political parties.

E-filing is also mandatory For LLPs or persons required to file return in ITR-3, ITR-4 or ITR-5

What you should know before you e-file your Income Tax Return Get Details

Types of Income Tax Return to file?

There are different Types of income tax return forms to be filled by individuals or business enterprises depending upon the source of income earned.

The List is given below:

ITR 1 or Sahaj:This ITR form is meant for individuals earning income from salary or interest on deposits (bank savings account, Fixed Deposits/FD etc.).

ITR 2: This form is meant for individuals and HUFs without income from business or profession.

ITR 2A: This form is meant for individuals and HUFs with no income from business or profession and capital gains and who don’t own foreign assets. This form has been discontinued starting from FY 2016-17 and merged with ITR 2.

ITR 3: This form is meant for Individuals / HUFs who are partners in a firm which is other than a proprietary business or profession.

ITR 4 or Sugam: This form is applicable to individuals who own singly or in partnership a business or a profession. All businesses, undertakings and professionals must use form ITR-4. Examples of this category of taxpayers include shopkeepers, doctors, designers, agents, retailers and contractors.

ITR 4S: ITR 4S that was used by an individual or a Hindu Undivided Family (HUF) has now been discontinued and merged with ITR-4.

ITR 5: ITR-5 is meant for specific entities that includes Firms, Limited Liability Partnerships (LLPs), Bodies of Individuals (BOIs), Associations of Persons (AOPs), Co-operative Societies, Artificial Judicial Persons and Local Authorities among others.

ITR-6: This form is applicable to all companies excluding those companies that claim tax exemption under Section 11 (those claiming income from assets/ land held for the purposes of religion or charity).

ITR-7: For individuals or companies falling in the tax incidence of Sections 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D). Examples of bodies declaring taxes with this form include news agencies, research associations, trusts, political parties, colleges and universities etc.

If you’re still confused, just upload your Form 16 certificate onto our site or smartphone app and let the programme file your returns automatically!

Checklist of Documents you need to Keep Handy While E-filing your ITR:

PAN number

Form 16

Form 16A

Form 26AS

Bank Passbook

Fixed Deposit Statement

Proof of Investment under Section 80C

House Rent Receipt for HRA

Medical Expense Receipts

Tickets for LTA

Documentary Evidence of Home Loan Interest

Documentary Evidence investment under Section 80E

Documentary Evidence of Investment under Section 80D

Share Transaction Statement

Detailed Breakdown of Tax Slabs For Individuals:

Income Tax Slabs for Individuals (less than 60 years of age) Income Tax Slab Tax Rate Up to Rs 2,50,000 * No Tax Income from Rs 2,50,000 – Rs 5,00,000 5% From Rs 5,00,000 – 10,00,000 20% More than Rs 10,00,000 30% Surcharge: 10% of income tax, where total income is more than Rs.50 lakhs upto Rs.1 crore.

15% of income tax, if the income is more than Rs.1 crore. Cess: 3% on total of income tax + surcharge. * Income Tax Exemption limit for FY 2017-18, is up to Rs. 2,50,000 for Individual & Hindu Unified Family (HUF). This limit is for those who not covered in Part (II) or (III).

Income Tax Slabs for Senior Citizens (60 years and above but less than 80 years of age) Income Tax Slab Tax Rate Income up to Rs 3,00,000 * No Tax Income from Rs 3,00,000 – Rs 5,00,000 5% Income from Rs 5,00,000 – 10,00,000 20% Income more than Rs 10,00,000 30% Surcharge: 10% of income tax, where total income is more than Rs.50 lakhs up to Rs.1 crore.

15% of income tax, if the income is more than Rs.1 crore. Cess: 3% on total of income tax + surcharge. * Income Tax Exemption limit for FY 2017-18, is up to Rs. 3,00,000 for Individual & Hindu Unified Family (HUF). This limit is for those not covered in Part (I) or (III).

Income Tax Slabs for Super Senior Citizens (Age - 80 years and more) Income Tax Slab Tax Rate Income up to Rs 2,50,000* * No Tax Income up to Rs 5,00,000* * No Tax Income from Rs 5,00,000 – 10,00,000 20% Income more than Rs 10,00,000 30% Surcharge: 15% of income tax, if the income is more than Rs.1 crore. Cess: 3% on total of income tax + surcharge. * Income Tax Exemption limit for FY 2017-18, is up to Rs. 5,00,000 for Individuals & Hindu Unified Family (HUF). This limit is for those who not covered in Part (I) or (II).

Guidelines on How to File for Income Tax Returns Get Details

Steps to e-file income tax returns

Step 1: Register yourself

To e-file your income tax, first of all, you need to on the income tax department’s website. You have to submit your PAN (Permanent account Number), date of birth and choose a password. Your PAN will work as your User ID.

Step 2: Select the mode of e-filling

You can e-file your income tax in two ways:

Download the form from the download section of the official portal, fill it offline and upload it back onto the site.

Or, you can fill the form online through the "Quick e-file" options.

Step 3: Select your form Next, you should select the requisite form. The detailed list of the forms along with who should file it is given above. Step 4: Keep your documents ready For smooth income tax filing online, you should keep all compulsory documents ready and nearby. You should avoid a situation where you need to search for the documents during e-filing as the user session may time out and data may be lost. A detailed list of documents required is given above. Step 5: Upload the filled in form

If you have filled in the form offline after downloading it, you should click the generate XML button. Once the XML is generated then go to the website again, log in, and click ‘Upload XML’ button. Select the file saved on your computer and submit.

Step 6: Verify ITR V

As you submit your ITR an acknowledgement number will be generated. If you have submitted and filled your return form using a digital signature, then you need to save this number for further reference. In case the ITR was submitted without employing a digital signature an ITR-V is generated and sent to you on your registered email ID.

Things to Remember While e-filing Income Tax Returns:

You should carefully identify the heads under which your income is taxable

Declare all your assets if you earn more than Rupees 50 lakh in a year.

Keep all your documents safe for future reference.

Mistakes to Avoid while E-filing your ITR: