The total income tax returns filed for 2017-2018 increased by 26%, with 99.49 new tax filers, says an article in The Economic Times. This substantial increase in taxpayers shows that people are becoming more responsible citizens of India. And, with the availability of e-filing of income tax, it has become much more convenient for people to fulfil this responsibility.
Electronic filing or e-filing is the term used for submitting your income tax online. E-filing is relatively easier, quicker and more confidential, as compared to the conventional method. Now, you can stop worrying about the tedious paperwork. Here are some easy steps that tell you how to file income tax online.
Step 1: Get yourself registered
For e-filing your income tax, first, you will have to register yourself on the Income TAX Department’s official website. Here, you will need to fill in details such as your name, date of birth and PAN number. You can choose your password, while your PAN will be your user ID.
Step 2: Select a way to e-file
There are 2 ways by which you can file your returns online. The first is to download the important form, fill all your details offline and then upload it on the website later. The other is to choose the quick e-file option and fill in the form online.
Step 3: Select the form you require
There are various types of income tax return forms, depending upon your profession and annual income. For instance, individuals earning a salary, pension or earning through a property and other sources need to fill the ITR (Income Tax Return)-1 form, while people who are earning capital gains must fill the ITR (Income Tax Return)-2 form. So, choose the important form accordingly.
Step 4: Keep your documents handy
To file taxes online, you will need documents such as your PAN card, TDS certificates, Form 16, investments details, insurance and loan papers. If you earn more than a specific amount as income, you will have to disclose the value of all your assets. You can upload scanned versions of these documents online, as and when required.
Step 5: Upload and Submit
Once, you have filled all the details accurately, upload your form on the Income Tax Department’s website. If you have filled your form offline, you will need to upload the XML file and then submit it.
Step 6: Verify your ITR (Income Tax Return) -V
After submitting your form, a specific number will be generated. If you have not submitted using a digital signature, an ITR (Income Tax Return)-V will be generated and sent to your registered email ID. You can choose to electronically verify or mail the signed ITR (Income Tax Return)-V to the processing centre within a time frame of 120 days. Your tax-filing process is completed only when your ITR (Income Tax Return)-V is verified.
Now, you don’t have to worry about a tedious income tax filing process. Income tax e-filing isn’t as difficult as you might have thought. And, nothing proves you to be financially intelligent and a responsible citizen more than submitting your income tax on time.