Less than a week to go until 31st July- which happens to be the last day to file IT Return. If you haven’t filed your IT Return yet, there’s no reason to panic – get your act together and get on with it.
While it is mandatory as per law to eFile Income Tax Return for income more than Rs 5 lac p.a., even those with an income of less than Rs 5 lac p.a. should embrace e-filing because of the convenience it offers.
To help you e-file your return smoothly, we bring you this tutorial that explains the process of filing income tax return in simple steps.
Steps to eFile Income Tax Return
The process can be broadly divided into following steps:
- Step 1: Get your hands on the documents you will need
- Step 2: Select the appropriate ITR form relevant to your need
- Step 3: Fill the form and submit online
- Step 4: Download the acknowledgement form, called the ITR V form and mail it to IT Department
Let’s now look at these steps in detail:
Step 1: Get your hands on the documents you will need
Form 16 – This is a certificate your employer gives you. It has the details of your salary, TDS deducted and deposited by the employer.
Form 26AS – This is the tax credit statement that has the details of all the taxes that have been deducted against your PAN and taxes you deposited yourself. You can download Form26AS from the Income Tax website (you’ll be required to login/register to viem26AS)
Interest & Principal Repayments – If you have a home loan, look at the details of your payments towards interest and principal made during the financial year. The Interest amount can be entered into Income from House Property section to claim deduction.
Bank Statements – Download your bank statements from your bank’s website. You will need this to input any interest that has been credited to your savings account. And details of income from Fixed Deposits, if any.
Share Trading Details – You’ll have to provide long-term & short-term capital gains from share/mutual fund trading. Most of the trading portals provide the capital gains statement to their customers. Here is a screenshot from ICICI Direct that shows how to download your capital gain statement:
Investments for Section 80 deductions – If you haven’t supplied all your 80C deductions to your employer, get hold of all the details you have. These include Your PPF passbook, LIC insurance premiums details, children’s school fees & Section 80G receipts et all. You can claim a maximum of Rs 1,00,000 under Section 80 C.
Step 2: Select the appropriate ITR form
For individuals, there are 5 different types of ITR forms as shown below:
Step 3: Fill the Income Tax Return (ITR) form & submit online
You can either e-file your return using the official Income Tax website https://incometaxindiaefiling.gov.in/, or you can take a look at e-filing portals like ClearTax.
While filing return through Income Tax website is free, the interface is quite complicated for a layman to understand. This is where e-filing portals like ClearTax can be of help. I personally used ClearTax to file my return this year, and their simple UI and hassle free look made it a very effortless experience. You don’t even have to worry about choosing the correct ITR form, as the portal automatically selects the correct form for you based on the inputs you provide. Nor do you have to worry if you don’t have your Form 16 in pdf- they have a very intuitive format, so you can fill in the fields yourself. And the icing on the cake is that it is FREE!
Here’s a very easy to follow Guide to E-filing at ClearTax truly dispelling the myth around arduous e-filing processes that involves pages & pages of ITR forms.
Step 4: Download & mail the ITR V form to IT Department
After you complete e-filing, you will receive your ITR-V form over email. Print this document and mail it to the following address within 120 days of e-filing your IT Return.Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka 560100
Remember you don’t have to submit supporting documents to the IT department. However, keep those safely with yourself, in case the revenue authorities conduct any audit of the tax return filed.
Take out time for filing your returns, refunds if any are only processed when you file your returns besides non-filing attracts penalties too.
Now that you know how simple & easy the process is – don’t procrastinate, eFile income tax return now!