How to File Income Tax Returns Online: Step-by-Step for Beginners

Submitting your income tax return (ITR) may not be easy when you are doing it for the first time. But due to the Income Tax Department’s e-filing service, even beginners can go through the process easily. With this guide, both salaried people, freelancers, and small business owners can learn how to submit their ITR online.

What is an Income Tax Return (ITR)?

An Income Tax Return is a document where people declare their annual earnings, the deductions they took, and payments they have made in taxes. It lets the department track what you earn, decide your tax responsibilities, and reimburse you with refunds if you give more tax compared to your liability.

Why Should You File Your Income Tax Return?

Filing ITR is not just a legal obligation—it has real benefits:

  • Claiming TDS refunds
  • Serving as proof of income
  • Required for loans or visa applications
  • Avoiding penalties
  • Carrying forward capital losses

Documents Required to File Income Tax Return Online

Before you begin, collect the following documents:

  • PAN Card
  • Aadhaar Card
  • Form 16 (issued by employer)
  • Bank account details
  • TDS Certificates (Form 16A)
  • Investment proof (under 80C, 80D, etc.)
  • Capital gains statement (if applicable)
  • Rental income details

How to File Income Tax Return Online: Step-by-Step for Beginners

The Income Tax Department has made income tax return filing online easier and more user-friendly. Here's a step-by-step guide:

Step 1: Gather Necessary Documents

Before you begin, ensure you have all the required documents handy. While you don't generally need to upload proofs, you must retain them for potential future scrutiny.

  • PAN Card
  • Aadhaar Card
  • Form 16 (from your employer, if salaried)
  • Form 16A (TDS certificate for non-salary income)
  • Form 26AS (Tax Credit Statement)
  • AIS (Annual Information Statement) & TIS (Taxpayer Information Summary)
  • Bank statements for interest earned on savings and fixed deposits.
  • Investment proofs for claiming deductions under Section 80C, 80D, etc. (e.g., PPF passbook, ELSS statements, life/health insurance premium receipts).
  • Home loan interest certificate (if applicable).
  • Rent receipts (if claiming HRA and not submitted to employer).
  • Capital Gains Statement (for sale of shares, mutual funds, property).
  • Details of other income like dividends, lottery winnings.

Step 2: Determine Your Residential Status

Your residential status (Resident, Non-Resident, or Resident But Not Ordinary Resident) significantly impacts your tax liability. For most beginners, you'll likely be a "Resident" if you've been in India for 182 days or more in the financial year.

Step 3: Choose the Correct ITR Form

Selecting the right ITR form is crucial. Using the wrong form can lead to your return being treated as defective. The most common forms for individuals are:

  • ITR-1 (Sahaj): For resident individuals having total income up to ₹50 Lakh, from salaries, one house property, other sources (interest, etc.), and agricultural income up to ₹5,000.
  • ITR-2: For individuals and HUFs not having income from profits and gains of business or profession. This is for those with income from more than one house property, capital gains, foreign assets, etc.
  • ITR-3: For individuals and HUFs having income from profits and gains of business or profession.
  • ITR-4 (Sugam): For resident individuals, HUFs, and firms (other than LLP) having total income up to ₹50 Lakh and having income from business and profession computed under the presumptive taxation scheme (Sections 44AD, 44ADA, 44AE).

Step 4: Calculate Your Total Income and Tax Liability

  • Calculate Gross Total Income: Sum up your income from all five heads.
  • Claim Deductions: Subtract eligible deductions under Chapter VI-A (80C, 80D, 80E, etc.) from your gross total income to arrive at your Net Taxable Income.
  • Apply Tax Slab Rates: Calculate your tax liability based on the applicable slab rates for your net taxable income.
  • Add Surcharge and Cess: Surcharge is applicable on higher incomes, and a Health and Education Cess is levied on the income tax.
  • Subtract TDS/TCS/Advance Tax Paid: Deduct any tax already paid (TDS, TCS, or advance tax) from your total tax liability.
  • Determine Tax Payable or Refund Receivable: If tax paid is more than tax liability, you're due a refund. If less, you need to pay the balance tax.

Step 5: Register on the Income Tax E-filing Portal

If you haven't already, register on the official Income Tax Department e-filing portal: www.incometax.gov.in. You'll need your PAN to register.

Step 6: File Your Income Tax Return

You have two main options for online income tax return filing:

Option A: Online Mode (for ITR-1 and ITR-4)

  1. Log in to the e-filing portal.
  2. Go to "e-File" > "Income Tax Returns" > "File Income Tax Return".
  3. Select the Assessment Year (e.g., 2025-26 for FY 2024-25).
  4. Select "Online" mode of filing.
  5. Choose your ITR Form (e.g., ITR-1).
  6. Select the reason for filing (e.g., "Taxable income is more than the basic exemption limit").
  7. Pre-filled data: The portal will often pre-fill many details from your PAN, Aadhaar, Form 26AS, and AIS. Crucially, verify all pre-filled information for accuracy. Make corrections if necessary.
  8. Fill in details: Enter income details, deductions, tax paid, and bank account details.
  9. Confirm details and proceed: Review all sections thoroughly.
  10. Tax Computation: The system will automatically calculate your tax liability. If there's tax payable, you'll need to pay it before proceeding. If there's a refund, ensure your bank account details are correct.
  11. Preview and Submit: Carefully preview your return. Once satisfied, click "Proceed to Validation" and then "Proceed to Verification."

Option B: Offline Mode (for all ITR forms)

  1. Download the offline utility (Excel or JSON-based) from the "Downloads" section of the e-filing portal for the relevant Assessment Year.
  2. Fill in the details in the downloaded utility. This process is similar to the online mode, but you'll be working on your computer.
  3. Generate JSON file: Once you've filled all the details and validated them, generate the JSON file.
  4. Upload the JSON file: Log in to the e-filing portal, navigate to "e-File" > "Income Tax Returns" > "File Income Tax Return", select the Assessment Year, choose "Offline" mode, and upload the generated JSON file.
  5. Proceed to Verification: After successful upload, you'll proceed to the verification step.

Step 7: Verify Your Income Tax Return

E-verification is a mandatory step to complete your income tax return filing. Without verification, your ITR is considered invalid. You have several options:

  • Aadhaar OTP: The most common and easiest method. An OTP will be sent to your mobile number registered with Aadhaar.
  • Net Banking: Verify through your bank's net banking portal.
  • Bank Account EVC: Generate an Electronic Verification Code (EVC) through a pre-validated bank account.
  • Demat Account EVC: Generate EVC through your Demat account.
  • Digital Signature Certificate (DSC): Primarily used by businesses and certain professionals.
  • Sending ITR-V to CPC Bangalore: If you cannot e-verify, you can print and sign the ITR-V (Acknowledgement) form and send it by ordinary post or speed post to the Centralized Processing Centre (CPC) in Bangalore within 30 days of filing. This is the least preferred method.

Once your income tax return is verified, you will receive an acknowledgement. Keep this for your records.

Tips for Smooth Income Tax Return Filing

  • Double-check your PAN and Aadhaar
  • Use pre-filled data available on the portal
  • Always verify your return within 30 days
  • File before the deadline (usually July 31 for individuals)

Common Mistakes to Avoid During Income Tax Return Filing

  • Incorrect ITR Form Selection: Always choose the ITR form that accurately reflects your income sources.
  • Mismatch with Form 26AS/AIS/TIS: Ensure that all income and tax deducted/paid details in your ITR match the information in your Form 26AS, AIS, and TIS.
  • Non-disclosure of all income sources: Even minor income like interest from savings accounts should be reported.
  • Incorrect Claim of Deductions/Exemptions: Only claim deductions and exemptions for which you have valid proofs.
  • Not verifying the return: The income tax return filing process is incomplete without e-verification.
  • Errors in bank account details: Ensure your bank account details are accurate for direct refund credit.
  • Missing due dates: File your return before the specified due date to avoid penalties.

What if You Make a Mistake After Filing? (Revised Return)

If you discover any errors or omissions in your income tax return after filing it, you can file a Revised Return under Section 139(5) of the Income Tax Act. This allows you to correct mistakes in your original return, even if it was a belated return.

How to Check Income Tax Refund Status

Should you get a refund, you can check its status either on the NSDL site (which is now Protean eGov Technologies Limited) or on the Income Tax Department’s e-filing portal by giving your PAN and the Assessment Year data.

Conclusion

Paying your income tax is a basic duty for managing your money properly. Having the proper information and getting ready in advance can help the process go smoothly and bring positive results. EximPe works hard to help individuals and businesses make clear financial choices. It’s time to start the process to file your ITR. Get things going now and keep your operations in line with all regulations.

FAQs About Income Tax Return Filing

1. How can I file my income tax return online?

You can file ITR online through the official portal incometax.gov.in using either the online form or by uploading a filled ITR JSON file.

2. Is it mandatory to file income tax return in India?

Yes, if your annual income exceeds the basic exemption limit, it is mandatory to file ITR.

3. Can I file ITR without Form 16?

Yes, you can use your salary slips and Form 26AS to file your ITR if Form 16 is unavailable.

4. Which ITR form should I use as a salaried individual?

Use ITR-1 (Sahaj) if your income is below ₹50 lakh and doesn’t include capital gains or foreign assets.

5. What happens if I miss the ITR deadline?

A late fee of ₹1,000 to ₹5,000 may apply. You may also lose the right to carry forward certain losses.

6. Can I revise my income tax return after submission?

Yes, a revised return can be filed before the end of the assessment year.

7. How do I verify my income tax return?

You can e-verify using Aadhaar OTP, net banking, or send a signed ITR-V to CPC Bengaluru.

8. Do I need to attach any documents with my ITR?

No. You are not required to attach any documents while filing the ITR online.

9. What is Form 26AS?

It is a tax credit statement showing TDS deducted and tax paid against your PAN.

10. When will I get my income tax refund?

Refunds are usually processed within 20–45 days post-verification.

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