A Step by step guide to filing your Income Tax …

1 P a g e | 1 of 21 A Step by step guide to filing your Income Tax returns online - SMITHA HARI Executive Summary: filing Income Tax Returns online has been possible for many years. In case of complexities, you can take the help of a professional. If it is a more simple and straightforward filing , you can use the online mode of filing returns by yourself. This year, there are a number of changes introduced by the IT Department, including change in forms, inclusion of bank account details, inclusion of passport number if you have travelled abroad and Aadhar card details and extension in the last date of filing returns.

2 This article discusses these points, in addition to giving you a detailed step by step explanation of how to file returns online. It is that time of the year when everyone is rushing to file their Income Tax returns. Did you know that you can file your returns online by following a simple process? filing Income tax returns online has been possible for many years now. In 2013, it was made mandatory to efile your Income tax returns online if your taxable Income crosses Rs. 5 lakhs during the year. The Income Tax department has simplified the eFiling process considerably over the years.

3 You may consider taking a professional help to file returns in case of complexities or when there are multiple components of Income are involved. For a simple, straight forward filing ( Form 16 based), you can consider filing returns yourself online. It is perceived that eFiling Income tax returns is complicated and time consuming. But this is really not the case. We have put together a step by step guide on the different aspects of filing Income tax returns online. What are the forms to be used in various cases?

4 The following are the forms to be used in different cases: ITR 1 (SAHAJ) For Individuals having Income from Salary & Interest. ITR 2 For Individuals & HUFs not having Income from Business or Profession ITR 2A For Individuals & HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets ITR 4S (SUGAM) For Individuals/HUF having Income from presumptive business ITR 2A was newly introduced this year (Assessment Year 2015-16) for individuals and HUFs with Income from salary, house property, Income from other sources and clubbed Income .

5 Are documents required to be submitted while filing returns online? No. It is not required to submit any kind of documents (investment proofs / Income proofs) while filing the returns. However, keep these documents safely in case they are demanded at any point in time by the authorities. P a g e | 2 of 21 What is different this year, while filing returns for Assessment Year 2015-16? The Income Tax department has brought about some important changes this year, as under: 1.

6 The last date for filing returns has been extended by a month to 31st August this year. 2. All Bank account details (except dormant accounts) are required to be filled in the return . The bank name, IFSC code, bank account number and type of account (current or savings account) need to be disclosed. A dormant account has been specified as one while has not been operated for the past 3 years. 3. If you have travelled abroad, you are required to mention the passport number. 4. If you hold an Aadhar Card, this Aadhar Card number needs to be mentioned in the Income Tax returns.

7 5. If you are to claim refund, then it has become mandatory to file the returns electronically, even if you are eligible to file paper returns. Further, all refunds are proposed to be made electronically and not by cheque payment. 6. For HUFs, the date of formation of HUF should also be mentioned. 7. If you have claimed capital gains exemption by depositing unutilized amount in Capital gains account scheme, then additional details will need to be disclosed pertaining to transfer of asset and purchase of new asset. Points to remember Keep in mind that interest received in savings bank account is taxable above Rs.

8 10,000 in a financial year. If you missed submitting the proofs to your company ( Mediclaim premium receipt u/s 80 D, you can include it now while filing the returns). If you have fixed deposits, TDS is levied by bank @ 10%. Based on your tax slab, you may need to pay the additional tax, including penalties as applicable. What is the process involved in filing returns online? You must file your returns on the Income Tax department s eFiling website - Let s look at the steps involved in filing Income Tax returns online. REGISTRATION PROCESS Step 1: If you are a new user, you must first register yourself on the site.

9 Click on the Register Yourself button on the top right corner in the website. P a g e | 3 of 21 Step 2: Select the user type applicable to you: Step 3: Enter the details applicable to you. Remember that having a valid PAN is essential for filing returns. If you do not have this, you should first apply for your PAN. The PAN serves as the login id when you file your Income tax returns online. Fill in your other personal details such as name and date of birth.

10 P a g e | 4 of 21 Step 4: In the following screen you will need to enter a password, secret question and answer and other personal details such as contact number, email id, address etc. proceed to On successful completion of the registration form, the registration becomes successful and you can file your returns. LOGIN PROCESS Step 1: Once you are a registered user, you must login to your account to file the returns.