Income Tax Return 2020: How to e-file ITR in easy steps – A ready reckoner

Today, taxpayers can file income tax returns (ITRs) via three modes – offline, online and software. Although this simplifies the process, certain modalities must be followed scrupulously while filing IT returns via any of these means. Apart from the do’s and don’ts, the offline mode can be used for all ITR forms. Online is only applicable for ITR-1 and ITR-4. Only people with salary income or that derived from other sources or house properties can use this mode.

Lastly, there is the software mode. The most efficient means, it is available for all kinds of IT returns. Since software allows comparison, reconciliation and error rectification, besides prefilling and validating errors, it saves users from subsequent legal hassles.

How to e-file ITR?

There are three ways to file an Income Tax Return:

1. Offline – Download the applicable ITR form in either JAVA or Excel format as per your convenience, fill it offline, generate the XML and upload the same by login into e-Filing portal. This mode is applicable for all ITR forms.
2. Online – Login into e-Filing portal, prepare the return online and submit it. This mode is applicable for ITR-1 and ITR-4 only.
3. Through Tax return filing software

Offline

User is required to follow the below steps to file ITR by Offline mode:

Step 1. Go to the Income Tax e-Filing portal by using link https://www.incometaxindiaefiling.gov.in/

Step 2. Click on the “IT Return Preparation Software” under the menu “Download”. Select the relevant “Assessment Year” and Download the applicable ITR form either in JAVA or Excel format as per your convenience.

Step 3. Fill the ITR form (In order to save time, user can also download the Pre-filled XML for pre-filling the personal and other details. To download user is required to login into e-Filing portal and click on “Download Pre-Filled XML” under the menu “My Account”)

Step 4. Validate all the sheets of ITR form and Calculate Tax

Step 5. Generate and Save XML

Step 6. Login into e-Filing portal and upon then select the Income Tax Return menu under e-File menu

Step 7. PAN will be auto populated, Select Assessment Year, Select ITR Form Number, Select Filing Type as “Original/Revised Return” and Submission Mode as “Upload XML”

Step 8. Select any one of the following options to verify the Income Tax Return:

(i) Digital Signature Certificate (DSC)
(ii) AADHAAR OTP
(iii) Already generate EVC through “Generate EVC” option under the menu “My Account”
(iv) I would like to e-verify later. Please remind me
(v) I don’t want to e-verify this Income Tax Return and would like to send signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru-560 500” and click on “Continue”

Step 9. Attach the ITR XML File and click on “Submit”

Step 10:

If “DSC” option is chosen in “Step 8”, then
Attach the Digital Signature

If “AADHAAR OTP” is chosen in “Step 8”, then
Enter the AADHAAR OTP received in the mobile number registered with UIDAI

If “EVC” is chosen in “Step 8”,then
Enter the EVC received in registered mobile number

If “E-verify later” option is chosen in “Step 8”,
In that case ITR will be submitted only but the process of ITR filing is not complete until it is verified.

If “I don’t want to e-verify” option is chosen in “Step 8”, then
You can either e-verify the same by clicking on “e-verify return” option under the menu “My Account” or send the signed ITR-V to CPC, Bengaluru

Step 11: Submit the ITR

Online

This mode is applicable for both ITR-1 and ITR-4 only. User is required to follow the below steps to file ITR by Online mode. Hence, individuals having income from Salary and or income from other sources or house properties can only file return in this mode.

Step 1. Go to Income Tax e-Filing portal by using link https://www.incometaxindiaefiling.gov.in/

Step 2. Login into e-Filing and upon then select the Income Tax Return under E-file Menu

Step 3. PAN will be auto populated, Select Assessment Year, Select ITR Form Number, Select Filing Type as “Original/Revised Return” and Submission Mode as “Prepare and Submit Online”

Step 4. Fill the applicable and mandatory fields of ITR form (Click on “Save Draft” every time in order to avoid data loss)

Step 5. Choose the appropriate verification option in the tab of “Taxes Paid and Verification”
I would like to e-Verify (Please ensure that you have valid Aadhar/ Prevalidated Demat Account/ Digital Signature certificate registered in e-Filing against your PAN to use this option)
I would like to e-Verify later within 120 days from date of Filing
I don’t want to e-Verify and would like to send signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru-560 500” within 120 days from date of filing

Step 6. Click on “Preview and Submit” button to verify all the data of ITR

Step 7. Submit the ITR

Step 8. e-Verification of ITR:

If “I would like to e-verify” option is chosen in “Step 5”, then
Enter the AADHAAR OTP received in the mobile number registered with UIDAI
Enter the EVC received in registered mobile number

If “E-verify later” option is chosen in “Step 5”,
In that case ITR will be submitted only but the process of ITR filing is not complete until it is verified.

If “I don’t want to e-verify” option is chosen in “Step 5”, then
You can either e-verify the same by clicking on “e-verify return” option under the menu “My Account” or send the signed ITR-V to CPC, Bengaluru

Step 9. EVC/OTP should be entered within 60 seconds otherwise, ITR will be auto submitted and the same should be e-verified later by clicking on “e-verify return” option under the menu “My Account”

Software

This mode is the most efficient mode and is available for all modes of the income tax returns. Filing though software makes the process simple as they are designed keeping in view of the user preferences and user requirements. It also eliminates multi-time data entry for most of the things and extracts from the masters created or fetched from online sources. Software provides capabilities for comparison, reconciliation and error rectification. Software validations allows user to prefill and validate errors before filing the returns, hence saves users from the legal hassles.

For business users these are quite helpful as they do lots of work for them in terms of filling up of the cumbersome forms and calculations like 3CB, 3CA ITR Forms.

(By Mr Kapil Rana, Founder and Chairman, HostBooks Limited)