Filing income tax returns used to be a challenging task for everyone, whether it’s a businessman or a salaried individual holding an insurance policy. However, the age of modern technology and ease of internet access has also eased these services and made them online. Yes, nowadays, filing your income tax online has become a matter of minutes.
In fact, it turns out to be a more accurate option, reducing the risk of errors. Let’s understand the steps of how to file income tax return online to help you file it timely and with accuracy.
Understanding Income Tax Filing and Its Benefits
Filing your income tax return in India is a legal requirement. It’s a way for the government to assess your total income and determine your tax liability. Whether you earn through salary, business profits, investments, or other sources, you’re obligated to declare your income and pay taxes accordingly.
Here are a few benefits of knowing how to file income tax returns online:
Convenience: Online filing enables you to complete your tax return from anywhere. Whether you are at your home or office, it eliminates the need for physical visits to a tax office.
Efficiency: The automated nature of online filing streamlines the process, making it faster and more efficient than the traditional paper-based method.
Reduced Errors: Automation significantly reduces the likelihood of errors in your tax return. As a result, it helps ensure greater accuracy and compliance with tax regulations.
Faster Processing: When you know how to file income tax online, it speeds up the processing time of your return. This, in turn, allows for quicker assessment and potential refunds.
Real-time Tracking: You can check your return’s status in real time. In return, it will eliminate uncertainty about its processing.
Instant Confirmation: Upon successful submission, you receive instant confirmation of your tax return, offering reassurance that your filing has been completed successfully.
Step-by-Step Guide to How to File Income Tax Return Online
Recently, governments worldwide have encouraged taxpayers to file their income tax returns electronically. As discussed previously, it is because knowing how to file your income tax return online holds several benefits. Now, let’s look at the process of filing it:
Gather Required Documents
Before beginning, cross-check that you have all the necessary documents handy. This includes your PAN card, Aadhaar card, Form 16 (for salaried individuals), bank statements, investment proofs, and any other relevant documents.
Choose the Right Portal
There are several government-approved portals where you can file your income tax return online. While there might be many portals, relying on the official one, the Income Tax Department’s e-filing portal will suit your needs the best.
Register/Login
If you’re new to understanding how to file income tax returns online and handling digital filing for the first time, you’ll need to register. It will require you to use your PAN card details. After registration is completed, you can log in using your username and password.
Select the Appropriate ITR Form
Depending on your income sources and residential status, proceed with the correct Income Tax Return (ITR) form. For example, salaried individuals usually file ITR-1, while business owners may file ITR-3 or ITR-4.
Fill in the Details
The online form will require you to enter various details such as your personal information, income details, deductions, and tax payable. When you understand how to file an income tax return online, this step will help ensure the accuracy of the information before submitting.
Verify and Submit
After filling in all the required details, review your form carefully. Once you’re satisfied that everything is correct, proceed to verify your return using Aadhaar OTP or by sending a signed physical copy to the Income Tax Department.
Receive Acknowledgment
Upon successful submission, you’ll receive an acknowledgement from the Income Tax Department. This confirms that your return has been filed successfully.
Know How to File Income Tax Return Online!
Filing your income tax return online is a straightforward process that offers numerous benefits. When you know how to file your tax returns online, it becomes a seamless task to ensure savings on them. You can learn about more topics which are related to how to file income tax returns online on Canara HSBC Life Insurance’s official website. Explore their Tax University articles to learn how you can save on taxes, calculate them online, and much more today!
