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Filing Income Tax Return (ITR) is a mandatory exercise for all taxpayers, through which they report their gross taxable income in a particular financial year, claim tax deductions, and declare net tax liability to the Income Tax Department.
As a taxpayer, you can either file the ITR online via the e-portal of the Income Tax Department (the process referred to as e-filing). You can also file your income tax return offline by downloading the applicable ITR and uploading the generated XML file after filling it out. Here are the different steps involved in filing Income Tax in India.
Offline Mode
Step 1 – To e-File your income tax-return via the upload XML method, you must download either of the following utilities:
Step 2 – Go to the Income Tax e-Filing portal
Step 3 – Download the desired ITR utility under 'Downloads > IT Return Preparation Software' from the portal
Step 4 – Extract the downloaded utility ZIP file
Step 5 – Open the Utility from the extracted folder
Step 6 – Fill out the different fields of the ITR form (both applicable and mandatory)
Step 7 – Validate all the entries of the ITR form and Calculate the Tax
Step 8 – Generate and Save the XML file on your computer
Step 9 – Login to e-Filing portal by using your user ID (PAN)
Step 10 – Click on the 'e-File' menu and then click on the 'Income Tax Return' link
Step 11 – After selecting the Assessment Year, ITR Form no, Filing Type and Submission Mode, select the 'Upload XML' and verify your ITR return through Aadhar OTP, EVC or Digital Signature Certificate (DSC)
2. Online Mode
Step 1 – Go to the Income Tax e-Filing portal
Step 2 – Click on the 'e-File' menu and then on 'Income Tax Return' link
Step 3 – After selecting the Assessment Year, ITR Form no, Filing Type, and Submission Mode, click on continue
Step 4 – Read the instructions carefully before filling out the mandatory and applicable fields of the Online ITR Form (click on 'Save Draft' periodically to avoid loss of data due to session expiry)
Step 5 – Choose the appropriate Verification Option under 'Taxes Paid and Verification' tab
Step 6 – Click on 'Preview and Submit' link and verify the details filled in the ITR form
Step 7 – E-verify your income tax return through via EVC/OTP/Aadhar when asked for