Filing tax returns online is pretty easy

We’re into a new financial year this month. This means we have to file our income-tax returns for the past year soon. For salaried individuals, online filing of tax is the easiest way to file income-tax returns. It is mandatory for salaried employees earning an income of Rs 5 lakh and above to file the income tax returns online. The process is easy and hassle-free.

For businessmen and others who do not work in a regular organisation also, e-filing is a great option. But they need to get their financials audited before fining it. How does one file their returns online?

The portal through which the returns have to be filed is: http:// incometaxindiaefiling.gov.in/.

For any Indian resident working in India and earning an annual income, which is above Rs 5 lakh, the first step is to register in the government portal given above by creating an account using their PAN number. The PAN number becomes both the unique identification number as well as the reference number for the IT filing of the individual. Once this step is done, the person has to login to his or her account to proceed to file for tax returns. It is best to read the instructions provided before filling up the forms and filing for tax returns.

The next step is to choose the correct income-tax return (ITR) form. It is ITR-1 for all salaried individuals. Businessmen and others have to look at the forms that are appropriate for them and choose it.

Once the form is chosen, every new user has to fill in their personal information. A person who already has used the portal to file the returns has to just verify if the existing personal information is correct and add details to any field, which is empty or has changed.

Once the personal information segment is filled up or verified, the next step is to enter the income details of the assessment year. The user has to simply follow the instructions given, to fill in all the relevant details.

The income details section is followed by a sub-section where the user has to provide the details of investments, which are eligible for tax exemptions. The user should ensure that all the investments are entered correctly. This is very crucial as it leads to calculation of the income-tax and if any detail is omitted or entered incorrectly, the tax payable will become more.

Once the income details segment is completed, the next section to be filled up is the tax details. For salaried employees, this section would have been pre-filled by the income tax department. The user has to merely cross-check the available data with their Form 16. For non-salaried taxpayers, the details have to be entered by the user.

The next segment is the taxes paid and verification segment. This segment gives information on the income-tax paid by the user so far, and also reflects on any refund or additional tax to be paid by the user.

Once all the forms are filled and the user submits them, e-verification happens instantaneously. Alternatively, a printout can be taken and sent to the CPC located in Bangalore.

Points to be noted:

A user can fill in the details of the different sections at different times and save it. Every time they save and exit, the succeeding time will reflect the all the details entered previously. This facility should be used as it helps in spacing out the entry. It can also help in avoiding errors.

If there are discrepancies in the details filled up or in the tax refund numbers, the IT department will send a notice. The user has to respond to the same.

Before filling up the tax returns online, it is best to keep the relevant forms such as Form 16, Form 16A, bank account details, and income-tax exemption details handy. Otherwise, the user will have to hunt for these anyway.

The users have the option of linking their Aadhar number to their PAN on the site. The site will generate an e-verification almost immediately.

Users can also either get their bank account number pre-validated or use their bank’s net banking facility for e-verification.

E-filing of income-tax is being stipulated as a norm to be followed. It makes sense to begin the filing process early and be done with it ahead of time. Happy filing!

(The author is founder and chief executive officer of Right Horizons Financial Services)