Income Tax Return Online Steps Online

 Richa Sharma
  Sep 28, 2018

Filing income tax returns online is the preferred way for the salaried taxpayers and pensioners to do the tedious activity in a much simpler and hassle-free way within minutes. There are a number of genuine websites that let you file your ITR online with ease. And then there is the Income Tax Department’s e-portal with upgraded features you could consider for filing your tax returns to make the process quicker and avoid all the last minute rush. The deadline to file Income Tax Returns this year has been extended to August 31, 2018, in lieu of the initial date which was July 31. For all those who are reluctant to file ITR before the mentioned deadline, the penalty this year will be heavier. There is a penalty of Rs. 5,000 to be paid, should you violate the August 31 deadline. However, the penalty is doubled (Rs. 10,000) in case the payment is delayed beyond December 31. Thus, it is best to consider the payment of your income taxes at the earliest to avoid incurring any fines.

In this article, we’ll talk about six steps to file your ITR and also update you with various major changes in the ITR forms this year. Some Steps to File Income Tax Return Online below:

Know about Income Tax Slabs

One absolutely has to know about the various tax slabs for individuals before they file their Income Tax Returns to be accurate in the computation of their tax liability. Let’s go through some points that shall make the tax slab rates clear to us:

  1. Annual Income up to Rs. 2,50,000 is exempted from any tax
  2. Income from Rs. 2,50,000- Rs. 5,00,000 is charged with a tax rate of 5%
  3. Income from Rs. 5,00,000- Rs. 10,00,000 is charged with a tax rate of 20%
  4. For Annual Income exceeding Rs. 10, 00,000 a tax rate of 30% is levied.
  5. Senior Citizens (up to the age of 60 years) are exempted from paying any tax on annual Income amounting to Rs. 3, 00,000.
  6. The tax rate is 5% for Senior Citizens with annual income of Rs. 3, 00,000 to Rs. 5, 00,000.
  7. Senior Citizens must pay 20% of income from Rs. 5, 00,000- Rs, 10, 00,000.
  8. Senior Citizens must pay 30% as tax on any income exceeding Rs. 10, 00,000.
  9. Income Tax exemption for super senior Citizens (80 years old or more) is Rs. 5, 00,000.
  10. The tax rate on Income of Rs. 5, 00,000- Rs. 10, 00,000 is 30% for super senior citizens.
  11. Any income more than Rs. 10, 00,000 is charged at the rate of 30% for Super senior citizens.

There is a surcharge that applies to income exceeding Rs. 50, 00,000 up to Rs. 1 crore that equals 10% of the income. Also, there is a surcharge of 15% on income exceeding Rs. 1 crore. A number of tax rules have been modified including rules that specify home loan interest as an income tax deduction. The changes highlight that the set-off loss from buying a house is limited to Rs. 2 lakhs in a financial year. The remaining balance on the set-off loss can be carry forwarded to the next 8 years.

Changes in Tax Forms

There have been notable changes in the tax forms this year. In ITR 1, it was only till the last year that the disclosure of taxable figures relating to house property income and salary was the only requirement. The requirement this year is the disclosure of all details in calculations regarding house property income and salary in ITR 1 AND ITR 4. One also has to provide an address proof for the same. Also, late tax filers are required to mention the details of the late filing fees paid. Coming to changes relating to ITR 2, there has been an introduction of a new field wherein the NRIs can provide details of their foreign bank accounts and get their tax refund credited to them. The new rule also states that one does not need to disclose their gender in the ITR forms. The amendment in Section 50CA of Finance Act, 2017 requires taxpayers to disclose information regarding unquoted shares. According to the newly introduced fields, TDS credit can be claimed in case TDS was in the name of some other person or was deducted from a common pool.

Choosing the correct ITR form

As a taxpayer filing returns from the tax department’s e-portal, you need to identify the ITR form you are required to file returns in out of the seven forms released by IT Department this year. The key points relating to ITR forms are as follows:

  1. ITR-1 and ITR-2 is relevant for salaried person and pensioners.
  2. Small businessman or self-employed professionals may file their returns in ITR-4.

It is up to the taxpayers to ensure that they mention certain things correctly like their name as it appears on their PAN card as even the slightest mismatch may interrupt the return filing process. Also, update your email address and mobile number to receive confirmation on the returns and refund process.

Verify TDS

TDS verification is an absolute must in order to ensure the tax deducted at source equals or tallies with TDS certificates and Form 16. Start with accessing your tax credit statement (Form 26AS) and verify your tax credits. In case there is a mismatch, you must address the same to your employer.

Fill in the details

After TDS has been correctly verified, the taxpayer has to select the online form and fill it up with the required details:

  1. The basic details have to be mentioned such as name, date of birth, email ID, mobile number, PAN number and residential address.
  2. Your income details
  3. Specify tax deducted by the employer or advanced tax.
  4. Enter your bank details

Check the details before you submit

It is mandatory to preview those details before you submit the return. You may submit if the details are provided correctly. Else, you may consider editing the returns before you submit.

As responsible citizens of this nation, it is our duties to pay taxes on time. So why not reduced this rigorous process to a simpler and much easier one? Follow these 6 steps to file IT returns online.

Income Tax Return Online Steps Online

Richa Sharma

Myself Richa Sharma who hs been writting for 10 years related finance, investment, income tax, reliance saver tax, ppf account, ELSS Funds, tax planning and all taxes.

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