Income tax E-filing can be defined as an online electronic mode of submission of returns of one’s actual income using the prescribed portal of Income Tax Department. The entirely new online e-mode provides digital return-filing alternative for filers, where physical paper submission for set-ups may be considered as outdated and a more efficient way of going about traditional filing.

Online Income Tax E-filing allows individuals, businesses, and other entities to declare income, allowances, and payable taxes using the Internet. The government introduced e-filing to create transparency and accuracy, making compliance easier so that people could fulfil their tax obligations with the least hassle. Further in this blog we will see how to file ITR online for salaried person.

 What Are The Documents Required For Income Tax E-Filing India?

Before you begin e-filing, gather the following documents- 

  • PAN (Permanent Account Number): A valid PAN number will be needed to file all the taxes
  • Aadhaar Number: It is compulsory to link the Aadhaar with PAN.
  • Bank Account Details: For refund credits, provide an active bank account number.
  • Form 16: This is an income tax form issued by your employer and it contains details of your salary and tax deducted.
  • Investment Proofs: Proofs of Tax-saving Investments (Equity Linked Savings Scheme, Public Provident Fund, Insurance, etc.)
  • Miscellaneous Income Proofs: Income from other streams like rental, interest, capital gains, etc.

Forms For E-filing

Following are the forms for  Income Tax India E-Filing:

Form ITR-1 (Sahaj): This is the most basic form for ordinary citizens of India who earn not more than Rs.50 lakh a year. It is useful when you obtain income through employment, rental property, or bank deposits. If you have some farming revenue, it should not exceed 5 thousand rupees.

Form ITR-2: Form ITR-2 is for people or Hindu undivided family individuals who receive income in the form of salaries, rentals, or from dividends, but none from business profits. You use this when you dispose of assets such as shares or real estate.

Form ITR-3: It concerns an individual or Hindu undivided family engaged in business or profession, like doctors or lawyers, self-employed.

Form ITR-4: This form warrants to be filled by individual small businessmen with a total receipt not exceeding Rs.50 lakhs. You will need this form when you are engaged in other businesses, such as a small shop, which qualify under presumptive taxation under Sections 44AD, 44ADA, or 44AE.

Form ITR-5: This one is for business entities such as partnerships, firms, and groups. Not suitable for institutions like schools or trusts – they have other forms.

Form ITR-6: This is just for companies. But if your company is a charity or religious organization, you’ll need a different form.

Form ITR-7: This is for special groups like trusts, schools, colleges, and political parties. It’s also for organizations that don’t usually pay taxes because they do social work.

Register on the E-Filing Portal

In order to file taxes, the individual should first register on the e-filing portal using their basic details and valid credentials, and learn how to do ITR filing online.

  • Go to official portal of Income Tax Department website https://www.incometax.gov.in
  • Select “Tax Deductor and Collector” as the registration type.
  • Fill in the Basic Information: Provide the Tax Deduction and Collection Account Number (TAN) which is a 10-digit number provided by the Income Tax Department, PAN of the deductor, and other required details.
  • Authenticate the information provided through OTP or any such means of Authentication.
  • Create a user profile via login ID and password to continue accessing the portal in the future.

How To File ITR Return Online 

To learn how to file ITR online step by step, individuals must first complete their registration on the e-filing portal, after which they can proceed with the filing process by following the outlined steps.

Step 1: PAN Validation 

Go ahead and enter the PAN in the Register as a taxpayer option and click on validate. A prompt will be displayed in case the PAN is invalid or already registered on the system.

Step 2: Fill in Basic Details

On the Basic Details page, fill in each and every piece of basic information including Name, Date of Birth (DOB), Date of Incorporation (DOI), gender if it applies, and more. These details are present on the PAN and need to be filled accurately. After filling in, you can click continue.

Step 3: Enter Contact Details

After getting the PAN validation, there is a contact detail page that needs to be filled by individual taxpayers. This includes primary mobile number, and email ID, to which further communication can be made and in addition, the home address can be added as well. After entering the details, pressing continue will let you proceed further.

Step 4: Enter OTP for Verification

The mail ID and mobile number primary set in the above step are going to receive 2 one time passwords. Once you get the SMS, enter the 6-digit OTP, and after entering the correct code on the email click continue to proceed.

Step 5: Review and Confirm Details

You may revise the details submitted on the page and edit them if necessary. To complete the process, click confirm once everything looks good.

E-Filing Deadlines and Penalties

  • The deadline for e-filing the Income Tax Return is generally 31st July for individual taxpayers and for businesses where audit is required this date is  30th September. However, this deadline is sometimes extended by the authorities. Taxpayers who fail to submit their returns by this extended date may still file belated returns, but they may face reduced benefits and penalties.
  • The penalties for returns made after 31st July, will depend upon income, according to Section 234F. The penalty for total income up to Rs.5 Lakh is Rs.1,000 and for total income above Rs.5 Lakh, the penalty shall be Rs.5,000.

Conclusion

Filing taxes online with the help of the e-filing system has made the process easier for everyone. There is no longer a need for long queues, paper forms, or complicated formalities. A simple click with a computer, sitting comfortably at home, and within a few minutes, your taxes are filed with great ease. 
This system helps reduce mistakes, save time, and speed up the time in which the taxpayer can receive their refunds. It is a small yet effective process that enhances the interaction between taxpayers and government entities. Many individuals would not not be worried about how to file ITR online by self.