How to Fill ITR Online: A Beginner’s Step-by-Step Guide to e-Filing
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A surprising fact: 1 in 3 Indians miss their tax filing deadlines and face penalties they could easily avoid.
The tax season brings overwhelming feelings, particularly if you’re a first-timer trying to understand what is ITR filing and how to file income tax return online. The complicated forms, confusing terms, and maze-like process can make anyone anxious.
Here’s something reassuring – e filing, or electronic filing of your income tax return (ITR), isn’t as complex as it seems. This guide helps both first-time filers and those who need a quick refresher on the latest steps.
This piece takes you through each step of filing your ITR online. You’ll learn everything from document collection to final submission. We’ve kept it simple with clear, applicable information instead of technical jargon.
Let’s help you become skilled at ITR filing!
Understanding ITR Basics
This guide explains the world of Income Tax Returns and breaks down everything you need to know about ITR filing in simple terms.
What is Income Tax Return (ITR)
An Income Tax Return (ITR) is a form where you report your income and tax details to the Income Tax Department. It works like an annual financial report card that declares all your earnings and the taxes you’ve paid or need to pay. The ITR full form is “Income Tax Return,” and understanding what is ITR filing is crucial for every taxpayer.
Different Types of ITR Forms
The Income Tax Department has created seven different ITR forms that cater to various types of taxpayers. Here are the main forms you should know about:
ITR-1 (Sahaj): For residents with income up to ₹50 lakh from salary, one house property, and other sources
ITR-2: For individuals and HUFs with income from salary, capital gains, and foreign assets
ITR-3: For individuals with business/professional income
ITR-4 (Sugam): For professionals with income up to ₹50 lakh under presumptive taxation
ITR-5: For firms, LLPs, and associations
ITR-6: For companies
ITR-7: For trusts and political parties
Who Needs to File ITR
Understanding who should file ITR and who can file ITR is essential. You must file an ITR if you fall under any of these categories:
Income Threshold: Your gross total income exceeds ₹2.5 lakh (₹3 lakh for senior citizens or ₹5 lakh for super senior citizens). This means your taxable income is more than basic exemption limit.
Special Cases – Filing becomes mandatory if you:
Have deposited more than ₹1 crore in current account
Spent over ₹2 lakh on foreign travel
Paid electricity bills exceeding ₹1 lakh
Have TDS/TCS more than ₹25,000
Business/Professional: You need to file if you:
Run a business with turnover above ₹60 lakh
Have professional income exceeding ₹10 lakh
You need to file ITR to claim a tax refund or carry forward losses, even if your income is below the threshold. Filing ITR becomes mandatory for resident individuals with foreign assets or financial interests, whatever their income level.
Note that selecting the right ITR form for individual taxpayers is significant as it depends on your income sources and taxpayer category. The next section will help you prepare all the documents you need for a smooth filing process.
Getting Ready for ITR Filing
Understanding ITR and its filing requirements allows us to prepare everything needed for a smooth process. Good preparation helps avoid last-minute rushes and ensures accurate filing.
Required Documents Checklist
The essential documents required for ITR filing include:
Identity Documents: PAN card and Aadhaar card (must be linked)
Income Documents: Form 16, bank statements, interest certificates
Investment Proofs: Tax-saving investment receipts, insurance premiums
Property Documents: Loan statements, rent agreements (if applicable)
Bank Details: Account information for all active accounts
Additionally, keep health insurance premium receipts and capital gains proofs handy if applicable. This comprehensive ITR filing documents list ensures you have all necessary information at your fingertips.
Creating Income Tax Portal Account
The registration process on the Income Tax Portal requires these steps:
Visit the Income Tax e-Filing portal (www.incometax.gov.in)
Click on “Register” and select “Taxpayer” option
Enter your PAN and confirm it
Fill in simple details including name, date of birth, and residential status
Provide contact details – mobile number and email ID
Verify through OTP sent to both mobile and email
Set password following the security guidelines
Complete registration and proceed to login
Pre-Filing Preparation Steps
Several key steps need attention before filling your ITR:
The process starts with linking PAN with Aadhaar, which is mandatory for filing returns. Your next step involves downloading and verifying the Annual Information Statement (AIS) and Form 26AS to cross-check all income and tax details.
The portal’s “Pre-validate Bank Account” option helps validate at least one bank account for receiving potential refunds.
Tax-saving investment proofs need organization for those filing under the old tax regime. It’s worth mentioning that while document uploads aren’t required during filing, keeping them handy helps with future reference.
Important Tip: Resolving any discrepancies in TDS details between Form 26AS and salary slips or interest certificates before starting the actual filing process helps avoid amendments later.
Navigating the Income Tax Portal
After gathering our documents and registering on the portal, we need to use the Income Tax Portal efficiently to file our ITR online. Let’s look at how to access and use its main features for e filing.
Logging In and Basic Navigation
The portal can be accessed at www.incometax.gov.in. You can log in securely through multiple ways:
Password-based login with PAN
Aadhaar OTP authentication
Net banking credentials
Digital Signature Certificate (DSC)
Bank Account/Demat Account EVC
Important: Your account will be temporarily locked for 30 minutes after five unsuccessful login attempts.
Understanding Dashboard Features
Your tailored dashboard appears after login and gives a complete overview of your tax-related information. The dashboard has several key sections:
Our Profile Snapshot shows our name, PAN, mobile number, and email ID. You can track your tax status through features like:
Total Outstanding Demand section
Tax Deposit details
Last three years’ returns summary
Recent forms filed
Pro Tip: The Activity Log section displays your last login, logout, and recent activities.
Accessing ITR Filing Section
The ITR filing process starts with these steps:
Click on ‘e-File’ in the top menu
Select ‘Income Tax Returns’
Choose ‘File Income Tax Return’
You’ll be directed to select the appropriate assessment year and filing mode. The portal lets you choose between online and offline utilities for filing your return.
Important Feature: The new portal pre-fills certain income details, including salary, house property, and capital gains information. This feature makes your filing process faster and more accurate.
The portal supports you with helpful resources:
Built-in chatbot
Video tutorials
FAQs
User manuals
Your progress saves automatically, so you can pause and resume filing anytime. The dashboard’s pending actions section alerts you about incomplete tasks.
Step-by-Step ITR Form Filling
You’re ready to fill out your return form after getting to the ITR filing section. Let’s look at each major section and fill them out right.
Personal Information Section
Most of your personal information comes pre-filled from your e-Filing profile. You need to confirm this data carefully. Here’s what to check:
Review and verify:
Simple details (name, PAN, date of birth)
Contact information
Bank account details
Filing status
Residential status
Important: You can’t edit some personal details directly in the form. Update them through your profile section instead.
Income Details Entry Guide
Your income sources need accurate reporting in this section. The portal pre-fills certain information, but you should check everything carefully.
Take time to confirm:
Salary/pension income details
House property income
Interest income from different sources
Other sources like family pension or dividends
Remember to include all taxable income, as your taxable income is more than basic exemption limit. Don’t forget to report any allowances and perquisites you’ve received.
Pro Tip: Match all pre-filled data with your Form 16, bank statements, and other income documents to ensure accuracy.
Deductions and Exemptions
Deductions help reduce your taxable income. Note that the system selects the New Tax Regime by default. Here’s what you should know about deductions and the tax regime:
If you’re using the New Tax Regime:
Only Section 80CCD(2) – Employer’s NPS contribution
Section 80CCH – Agniveer Corpus Fund deposits are available
The new tax regime deductions are limited, but it offers lower tax rates.
The Old Tax Regime lets you claim extra deductions under:
Section 80C (up to ₹1.5 lakh) – Including life insurance, PPF, ELSS
Section 80D – Health insurance premiums
Section 80TTA – Savings account interest
Section 24(b) – Home loan interest up to ₹2 lakh
When filing your ITR, carefully consider which tax regime suits you best based on your income and available deductions.
Important Note: Keep all supporting documents handy even though you don’t need to upload them during filing. The tax department might ask for verification later.
Check all entries carefully before moving ahead. Mistakes at this stage could affect your tax computation.
Calculating and Paying Tax
The completed ITR form leads us to the next significant steps: calculating our tax liability and making the payment. Let’s see how to handle this phase effectively.
Understanding Tax Calculation
The Income Tax Portal offers tools that help calculate tax accurately. The Income and Tax Calculator on the portal lets you compare tax liability under both old and new tax regimes.
The calculator works best when you:
Select the appropriate Assessment Year
Enter your taxpayer category and age
Input your total income details
Add applicable deductions
Review the tax calculation summary
Your tax liability gets calculated automatically, including applicable surcharge and health education cess. The advance tax needs to be paid in installments if your total tax liability exceeds ₹10,000.
Payment Options and Process
The e-Filing portal provides several convenient ways to pay your tax. You can pay through:
Net Banking (25 authorized banks including SBI, HDFC, ICICI)
Debit/Credit Cards
UPI
RTGS/NEFT
Here’s how to make the payment:
Log into the e-Filing portal
Click on ‘e-File > e-Pay Tax’
Select ‘New Payment’
Choose the applicable tax payment category
Enter assessment year and other details
Add tax breakup details
Select preferred payment mode
Verify details and click ‘Pay Now’
Important: The portal sends payment confirmation through email and SMS to your registered contact details.
If you have any unpaid tax after considering TDS and advance tax, you’ll need to pay self-assessment tax before filing your return.
Handling Refund Claims
Excess tax payments make you eligible for a refund. The process is optimized, but you need to ensure:
Your bank account is pre-validated on the portal
The account links with your PAN
All details match your bank records
Your refund status can be tracked by:
Logging into the e-Filing portal
Going to ‘Services > Refund reissue’
Selecting the relevant Assessment Year
The portal allows you to raise a refund reissue request if your refund fails due to incorrect bank details. The Income Tax Department adds interest at 6% per annum (0.5% per month) on refunds when the amount equals or exceeds 10% of the total tax paid.
Pro Tip: Updates about your refund status appear on your registered email and the portal. The IT refund time can vary, and processing might take anywhere from weeks to months.
Note that while the refund amount isn’t taxable, any interest received becomes taxable in the year you receive it. This interest income should be declared in next year’s ITR.
Verification and Submission
The last step of our ITR filing is to verify and submit our return properly. This vital phase makes our filing official with the Income Tax Department.
Different Verification Methods
We have two main options to verify our return after submission:
e-Verification: The quickest and most convenient way
Using Aadhaar OTP
Digital Signature Certificate (DSC)
Electronic Verification Code (EVC)
Net Banking
Bank ATM
Physical Verification (ITR-V): The traditional option
Download and print ITR-V
Sign it physically
Send to CPC Bangalore via speed post
Important Timeline: You have 30 days from filing to complete the verification. Your return becomes invalid if you miss this deadline.
e-Verification Process
Here’s how to use the most popular e-verification methods:
Using Aadhaar OTP:
Select ‘e-Verify Now’ option
Choose ‘Generate Aadhaar OTP’
Enter the OTP received on your registered mobile
Confirm verification
Using Bank Account/Demat EVC:
Make sure your account is pre-validated
Select EVC generation through bank/demat
Get code on registered mobile and email
Enter the code to complete verification
Pro Tip: Digital Signature Certificate (DSC) won’t be available if you choose to e-verify later.
Post-Submission Steps
Here’s what happens after successful verification:
Confirmation and Tracking:
You’ll get an email and SMS confirmation
Screen will display a transaction ID
Your e-Filing portal dashboard shows verification status
Processing Timeline:
Tax Department starts processing only after verification
Processing usually takes 20-45 days
Important Follow-ups:
Intimation Under Section 143(1):
You’ll receive an email with details about:
Total TDS deducted
Total tax paid
Applicable deductions
Document Retention:
Keep all income tax records for 8 years
Essential documents to save:
Form 16 and Form 12B
Tax payment challans
TDS certificates
Tax exemption documents
Bank statements
Gift deeds
What If You Miss the Deadline? Missing the 30-day verification window means submitting a ‘condonation of delay’ request with your reason. Your return becomes valid only after the department approves this request.
Address for Physical ITR-V: Send your signed ITR-V to this address if you choose physical verification: Centralized Processing Center, Income Tax Department, Bengaluru – 560500, Karnataka
Verification deserves the same attention as accurate filing. An unverified return has no validity, so complete this step within the timeline to avoid tax filing issues.
Conclusion
Filing your ITR online might seem daunting at first, but breaking it down into manageable steps makes the process much simpler. Each significant stage has been explained – from gathering documents and navigating the portal to calculating taxes and verifying your returns.
These points ensure successful ITR filing:
Choose the right ITR form based on your income sources
Keep all required documents available and well arranged
Cross-verify pre-filled data with your actual documents
Complete verification within 30 days of filing
Store all tax-related documents for 8 years
Remember, you can file ITR for the last 3 years now if you’ve missed previous deadlines. However, it’s always best to file on time to avoid late filing fees and other penalties.
Company Avenue Advisory can help streamline your business operations and maintain compliance. We offer tailored solutions for accounting, taxation, business registrations, and IT automation to simplify your path to success. Reach out to us today!
The filing process needs an early start to handle any challenges effectively. Proper preparation and attention to detail lead to accurate ITR filing without last-minute pressure. Tax compliance this year can be a smooth, hassle-free experience!
FAQs
Q1. How can I file my ITR online for the first time?
To file your ITR online for the first time, start by registering on the Income Tax e-Filing portal using your PAN. Then, log in, select ‘File Income Tax Return’, choose the appropriate assessment year and ITR form, fill in your details, verify pre-filled information, calculate your tax, make any necessary payments, and finally, e-verify your return within 30 days of filing.
Q2. What documents do I need to prepare before filing my ITR?
Before filing your ITR, gather essential documents such as your PAN and Aadhaar cards, Form 16, bank statements, interest certificates, investment proofs, property documents (if applicable), and details of all your active bank accounts. Having these documents ready will ensure a smooth filing process.
Q3. How do I choose the right ITR form for my income?
The right ITR form depends on your income sources and taxpayer category. For instance, ITR-1 (Sahaj) is for residents with income up to ₹50 lakh from salary, one house property, and other sources. ITR-2 is for individuals with income from salary and capital gains, while ITR-3 is for those with business income. Choose the form that best matches your income profile.
Q4. What are the different methods to verify my ITR after submission?
After submitting your ITR, you can verify it through e-verification methods like Aadhaar OTP, Digital Signature Certificate (DSC), Electronic Verification Code (EVC), net banking, or bank ATM. Alternatively, you can opt for physical verification by sending a signed ITR-V form to the CPC in Bangalore via speed post within 30 days of filing.
Q5. How long should I keep my tax-related documents after filing ITR?
It’s important to retain all your income tax-related records for at least 8 years after filing your ITR. This includes documents like Form 16, tax payment challans, TDS certificates, tax exemption proofs, bank statements, and gift deeds. Keeping these documents helps in case of any future inquiries or verifications by the tax department.
