How to File ITR Online: A Complete Step-by-Step Guide for 2024

E-filing is the process of filing an Income Tax Return (ITR) online using the internet. Individuals can use PAN-based login credentials to access the new income tax portal, which has a variety of features that make the tax filing process easier.

The Income Tax Department offers the option to e-file an income tax return. Before outlining the steps involved in e-filing an ITR, a taxpayer must have the following documents/information readily available to file ITR online:

i) PAN and Aadhaar cards

ii) Bank Statements

iii) Form 16

iv) Donation receipts

v) Stock trading statements from the broker platform

vi) Insurance policy paid receipts related to life and health

vii) Bank account information linked to PAN

viii) Aadhaar registered mobile number for e-verifying the return

ix) Interest certificates from banks

Step-by-Step Guide to File ITR Online on the IncomeTax Portal

Let’s have a look at the main steps in this ultimate tax filing guide:

Step 1 - Go to the Income Tax e-filing website

Step 2 - Register or log in to the website

Step 3 - Enter the required details

Step 4 - Select the mode of filing

Step 5 - Select the status

Step 6 - Select the appropriate ITR form

Step 7 - If you select ITR 1

Step 8 - If you select ITR 4

Step 9 - Summary of tax computation

Step 10 - Proceed to validation

Step 11 - Submit the ITR

Step 1- Visit the Income Tax e-filing website

The following link will take you to the Income Tax e-filing website- https://www.incometax.gov.in/iec/foportal/

Step 2- Register or log into the Income Tax e-filing website to file ITR online

Log in to the website with your user ID or PAN, password, and captcha code. To file your return, navigate to the 'e-File' menu and select 'Income Tax Return'.

You will be routed to the Income Tax Return page

Step 3- Enter the needed data

Your Permanent Account Number (PAN) will be automatically provided in the form. However, you'll need to enter the following:

Assessment Year- It is the fiscal year after the one in which income is earned. For example, if you make money in the fiscal year 2023-2024, the assessment year will be 2024-2025.

ITR Form Number: You can file ITRs 1 and 4 online.

Filing Type: You can choose 'Original/Revised Return' here.

Submission Mode: You can choose 'Prepare and Submit Online' at this phase.

Step 4- Select the mode of filing to file ITR online

Click 'Continue'.

Under 'Mode of Filing,' select 'Online' and then click 'Proceed.'

Step 5- Select the status

Choose 'Status,' such as Individual, Hindu Undivided Family (HUF), or Firm/LPP.

To provide a simple description:

An individual is commonly referred to as a natural person of any gender, who might be major or minor, and is covered under the definition of person under Section 2(31) of the Income Tax Act, 1961.

The Hindu Undivided Family (HUF) is a separate entity for tax purposes under the Act. Under Hindu Law, a HUF is a family made up of all people who are lineally descended from a common ancestor, including their spouses and unmarried daughters. It is crucial to understand that a HUF is taxed separately from a person. Thus, under the Income Tax Act of 1961, a HUF must be a separate business with its own PAN. The ITR submitted by such a HUF would be separate from the ITRs filed by its individual members.

Firm/LLP: According to Section 2(23)(i) of the Income Tax Act of 1961, the definition of a firm is the same as that of the Indian Partnership Act of 1932. Section 4 of the Indian Partnership Act 1932 defines a Firm as follows:

“Persons who have entered into a partnership with one another are called individually "Partners," and collectively a "Firm," and the name under which their business is carried on is called the "Firm Name."

According to the Income Tax Act of 1961, a firm must incorporate a Limited Liability Partnership (LLP), as specified in the Limited Liability Partnership Act of 2008. Section 2(1)(n) of the Limited Liability Partnership Act of 2008 defines a "Limited Liability Partnership" as a partnership created and registered pursuant to the Act. It is a separate legal entity from its partner.

Step 6- Choose the relevant ITR form

Choose the ITR form.

You have two online filing options: ITR 1 and ITR 4.

Step 7- If you choose ITR 1

If you select ITR 1, you must fill out five sections, which are as follows:

Personal Information - This includes basic information such as your full name, PAN and Aadhar, contact information, and bank account information.

Gross Total Income - In this part, the individual must enter and verify income from salary/pension, house property, and other sources (e.g., interest income, family pension, etc.). The individual will be expected to disclose details of exempt income, if any.

Total Deductions - The Income Tax Act of 1961 provides certain deductions under various sections that must be claimed. Some frequently known portions include 80C, 80D, 80TTA, and 80TTB, among others.

Tax Paid - This part will show the tax paid by you from all sources, including but not limited to TDS, TCS, Advance Tax, and Self-Assessment Tax.

Total Tax Liability - This section will display the tax liability computed from the previous sections. This means that the tax payable on total income is equal to the sum of income minus deductions claimed and tax paid so far. If the amount is negative, it can be claimed as a refund. If this sum is positive, it must be paid as tax.

Step 8- If you choose ITR 4

If you select ITR 4, you must fill out six sections, which are as follows:

Personal Information, Gross Total Income, Disclosures, Total Deductions, Taxes Paid and Total Tax Liabilities.

Step 9- Summary of tax computation

The website will display a summary of your tax computation for the relevant year based on the information you submitted.

The website will tell you whether you owe any taxes or are eligible for a tax refund. Entering your residence address allows you to see and submit your return.

Step 10- Proceed to validation

Click 'Proceed to Validation'. If there are any errors, please check them here. If not, you can proceed to verification.

You can validate the Income Tax Return by selecting one of the following options:

e-Verify

e-Verify later within 120 days from the date of filing

e-Verify via ITR-V through normal or speed post to "Centralised Processing Center, Income Tax Department, Bengaluru - 560 500" within 120 days from the date of filing

If you choose to e-verify yourself, you can finish the process by producing the Electronic Verification Code (EVC) or One Time Password (OTP) in either of the following methods:

Option 1: Generate EVC from your bank's ATM

Option 2: Generate OTP using the Aadhaar card

Option 3: Use a pre-validated bank account

Option 4: Use a pre-validated Demat account

If you prefer not to e-verify, you must send a copy of the ITR form to CPC Bengaluru at the address shown on the form. Your return is not complete until you verify it. After choosing a verification mode, click 'Preview and Submit'.

Step 11- To file the ITR online, submit the ITR

To submit the ITR, click 'Submit'.

Once you have successfully uploaded the Income Tax Return, you will receive an income tax acknowledgement by email.

Are you ready to file your income tax return online? Visit the Income Tax e-filing website now and follow our step-by-step instructions for a hassle-free filing experience!

Frequently Asked Questions

1.How can I find out if my ITR has been filed?

Step 1: Log in to the e-filing portal using your user ID and password.

If your PAN is not linked to Aadhaar, a pop-up notification will suggest that it is inoperable. Click "Link Now" to link your PAN and Aadhaar or proceed without linking.

Step 2: Navigate to e-file > Income Tax Returns > View Filed Returns.

Step 3: On this screen, you may view all your submitted returns. Use "Filter" to sort results based on parameters such as Assessment Year or Filing Type. Clicking "View Details" will provide the status of your ITR in the form of a return's life cycle, as well as action items (for example, pending e-Verification).

Note: If the PAN is inoperative, refund issuance will be on hold until linked.

2.When do we need to file our income tax returns?

Income is higher than the basic exemption limit

Deposited more than Rs. 1 crore in the 'current' bank account

Deposited over Rs. 50 lakhs in savings bank account

Expended more than Rs. 2 lakhs on foreign trips and more than Rs. 1 lakh on electricity bills

TDS or TCS is greater than Rs.25,000

Business turnover exceeds Rs 60 lakh

Professional income is greater than Rs.10 lakhs

3.How can I reduce my income tax in the ITR filing process?

Proper tax planning allows for numerous methods to save money on income taxes. The Income Tax Act includes several deductions and exclusions that can be claimed to minimise your total taxable income and tax outflow. The following are some of the most prevalent exemptions and deductions:

Deduction up to Rs 1.5 lakh under 80C - Investment in tax saving alternatives such as 80C- investing in ELSS, LIC, mutual funds, the deduction for tuition costs for children, the deduction for the principal amount of a home loan, etc.

Additional deduction of Rs 50,000 in excess of Rs 1.5 lakh in 80 CCC (1b) for contributions to central government pension plans.

80D permits deduction of medical insurance premiums paid for self, spouse, children (Rs 25000 / 50,000), and dependent parents (Rs 25000 / 50,000).

Donations given to recognised institutions and trusts are tax deductible up to certain limits under 80G.

10 (13A) allows for partial or whole exemption of house rent allowance.

Deduction for higher education debts under the 80E.

Deduction for a house loan paid up to Rs. 2 lakhs under section 24 for self-occupied property and the complete amount for rented property, and Rs. 1.5 lakhs under section 80EEA if certain requirements are met.

4.Why is it vital to file your income tax return?

Filing an ITR provides proof of income or net worth and is necessary for future loan applications, as well as credit card applications.

ITRs are necessary for visa applications and other purposes.

ITR is essential to receive term insurance.

ITRs are necessary for getting government tenders.

5.How can I file an income tax return after the due date?

The ITR due date is July 31st. If you do not file your ITR before the deadline, you may file a delayed or revised return. However, a late filing fee and penalty will apply. In the event of an updated return, there will be a penalty for additional taxes.

6.What is the deadline for submitting the income tax return in 2024?

Typically, the deadline for filing an income tax return is July 31 for individuals and non-audit cases and October 31 for audit cases of the relevant assessment year.

7.What should I do if I miss the ITR filing deadline?

If you missed the original filing date, you can file a belated return by December 31st of the applicable assessment year. If you miss this deadline for legitimate reasons, you can file a condonation of delay request and ask the income tax authorities to condone the delay.

8.Can I file ITR without Form 16?

If you do not have Form 16, you can still file your income tax return by utilising your wage slips and Form 26AS to compute your total income and tax deductions. Salary slips contain details about your earnings and deductions, while Form 26AS provides a summary of taxes deducted and deposited against your PAN.

9.How can I correct mistakes in my filed ITR?

If you find an error in your submitted ITR and it has not been processed by CPC, you can submit a corrected return. The rectification request function on the e-filing portal is only available for orders/notices issued by CPC under Section 143(1).

10.What are the benefits of e-filing ITR?

Filing tax returns online, or e-filing as it is called, has many benefits for taxpayers, including convenience, confidentiality, prompt processing, better accuracy, access to past data, proof of receipt, ease of use and electronic banking.

11.What is e-verification, and why is it important?

To finish the filing procedure, we must authenticate our income tax returns (ITRs). An ITR is considered invalid if it has not been verified within the specified time frame. e-Verification is the quickest and easiest way to verify an ITR.

12.Can I file ITR for previous years?

The belated return time has been changed to three months before the conclusion of the assessment year. The deadline for fiscal year 2023-24 is December 24. You can file returns from past years, but only for the two years preceding the current fiscal year.

13.How do I claim a tax refund?

The simplest way to obtain an income tax refund is to file a valid income tax return before the due date. Form 26AS allows us to see the entire amount of advance tax payments while filing our return.

14.How can I avoid common mistakes in the ITR filing process?

Incorrect personal information, choosing the wrong ITR form, not reporting all income sources, errors in claiming deductions, neglecting to verify before submission, ignoring the form 26AS, late filing of returns, not reporting foreign assets and incomes, not maintaining proper documentation, and mismatching tax credits are the common mistakes to avoid while filing an ITR.

15.If the income is below the taxable limit, will there be a penalty for submitting the return?

If the income is below the taxable limit, there is no penalty or interest imposed for submitting an income tax return after the due date.