An Income Tax Return (ITR) is a form that enables a taxpayer to declare his income, expenses, tax deductions, investments, taxes, etc. The Income-tax Act, 1961 makes it mandatory for a taxpayer to file an income tax return under various scenarios.
E-filing refers to the process of filing an Income Tax Return (ITR) online. By accessing the new income tax portal using PAN-based login credentials, individuals can take advantage of a range of features that simplify the tax filing process.
In this article we will understand how to file ITR in 8 simple steps!
Steps on How to E-file ITR on the Income Tax Portal
Step 1: Login
.
Step 2: Go To ‘File Income Tax Return’
Click on the 'e-File' tab > 'Income Tax Returns' > ‘File Income Tax Return’
Step 3: Select The Right ‘Assessment Year’
Select ‘Assessment Year’ as ‘AY 2025-26’ if you file for FY 2024-25.
Selectthe filing type correctly as original return or revised return.
Step 4: Select The Status
Select your applicable filing status: Individual, HUF, or Others.
For filing of persons like you and me, select 'Individual' and 'Continue'.
Step 5: Select ITR Type
The taxpayer must first ascertain which ITR form they must fill out before filing returns.
There are a total of 7 ITR forms available, of which ITR 1 to 4 is applicable for Individuals and HUFs.
For example, individuals and HUFs without income from business or profession but with capital gains can use ITR 2.
Step 6: Choose the Reason For Filing ITR
In the following step, you will be prompted to specify the reason for filing your returns. Select the appropriate option that is applicable to your situation:
Most of the personal details, such as your PAN, Aadhaar, Name, Date of birth, contact information, and bank details will be pre-filled. Validate these details carefully before you proceed further.
Also, provide your bank account information. If you have already provided these details, ensure they are pre-validated.
As you proceed step by step, ensure to disclose all relevant income, exemptions, and deduction details.
Most of your information will be pre-filled based on the data provided by your employer, bank, etc. Review the information carefully to ensure it is correct.
Confirm the summary of your returns, validate the details and make the payment of balance taxes, if any.
Step 8: E-Verify ITR
The last and crucial step is to verify your return within the time limit (30 days). Failing to verify your return is equivalent to not filing it at all.
You have the option to e-verify your return using different methods such as Aadhaar OTP, electronic verification code (EVC), Net Banking, or by sending a physical copy of ITR-V to CPC, Bengaluru.
ITR for individuals is mandatory only if their income is above basic exemption limit.
There are also other criteria, satisfaction of which ITR filing is mandatory.
Expenditure on foreign travel being more than Rs. 2 lakh (or)
Electricity consumption of Rs.1 lakh or more (or)
Deposit above Rs.1 crore in one or more current accounts (or)
Business receipts exceed Rs.60 lakhs (or)
Professional receipts exceed Rs.10 lakhs (or)
TDS and TCS amount exceeds Rs.25,000 (or)
In the case of a resident whose asset is located outside India or who has signing authority for an account-based account outside India, ITR filing becomes mandatory.
Benefits of Filing ITR
It is always a good idea to file your ITR even if you are not eligible due to the benefits.
Filing of ITR creates a valid proof of income or net worth
ITR is required for applying for any loan in the future
ITR is required by banks even for applying credit cards
ITR is required for VISA applications, etc.
ITR is required for obtaining Term insurance
ITR is required for obtaining government tenders
Hence it is advisable to file ITR even if your income is below the basic exemption limit.
Documents Required for Filing ITR
The following documents/information are required for e-filing their ITR:
PAN and Aadhaar
Bank Statements
Form 16
Donation receipts
Stock trading statements from the broker platform
Insurance policy paid receipts related to life and health
Bank account information linked to PAN
Aadhaar registered mobile number for e-verifying the return
Interest certificates from banks
However, you can e-file your ITR on Cleartax by just adding your PAN. We will auto-fill most of your details, like salary income, TDS, deduction details, etc, from the Income Tax Department.
Login to your income tax portal > select e-file > e-pay tax option to pay taxes online in the income tax portal.
How to file an income tax return after the due date?
The due date to file ITR is July 31st. If you miss filing your ITR within the deadline, you can file a belated return or updated return.
How to file an income tax return for previous years?
You can file the ITR of previous years using updated return (ITR U form). Nevertheless, there are certain restrictions on eligibility and the number of years for which ITR-U can be used.
How to check if ITR is filed?
Step 1: Log in to the e-filing portal with your user ID and password. Step 2: Go to e-File > Income Tax Returns > View Filed Returns. Step 3: View all your filed returns on the page.
What will happen if I have missed the due date or made a mistake while filing my Income Tax Return?
I missed the deadline: You can file a belated return before 31st December of the next financial year, i.e. For FY 2024-25, the filing date of it would be till 31st Dec 2025.
I made a Mistake: You can revise your already filed ITR before 31st December of the next financial year, i.e. For FY 2024-25 the filing date of it would be till 31st Dec 2025.
I have filed my return. When will I get a refund?
Usually, it takes 30-40 days to get your refund after filing your Income Tax Return.
Is it necessary to attach documents while e-filing ITR?
No, documents are not required to be attached/ uploaded, but you are advised to keep them with you. Income tax authorities may ask them if any assessment notice is served to you in future.
What are the consequences of non e-verifying income tax return?
Failing to e - verify ITR will result in invalidation of return, which means the return will be considered as having never been filed.
I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.
Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
Cleartax is a product by Defmacro Software Pvt. Ltd.