Complete guide: How to file income tax online.

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Wondering how to file income tax, well it is not rocket science at all to understand how to file income tax.  Follow these steps to get to know how to file income tax.

Step 1: Income and tax calculation

The taxpayer must determine their income in accordance with the terms of their personal income tax laws.

Income from all sources, including pay, side income from freelancing, and interest income, should be included in the computation. The taxpayer is eligible to deduct certain expenses, including investments covered by section 80C that save taxes.

Step 2: Form 26AS and Tax Deducted at Source (TDS) Certificates

Based on the TDS certificate he has gotten for each of the four quarters of the fiscal year, the taxpayer must add up his TDS amount. The taxpayer can benefit from Form 26AS’s account of TDS and tax payments made throughout the financial year.

Step 3 Choose the right Formal Income Tax.

The person must choose the correct income tax form, or ITR form, before filing his income tax return. After identifying the income tax form, the individual can continue with completing the income tax return. Through the taxpayer’s login in the online mode, only the ITR 1 and ITR 4 forms are accessible; forms for other categories of individual taxpayers are not. The offline mode (creating XML and uploading) is accessible for all sorts of income tax forms.

Step 4: get access to the Income Tax Portal online and download the ITR tool.

Visit www.incometax.gov.in, and  select “Downloads.” from top menu

homepage of the income tax portal

Select the assessment year and download the offline utility software of your choice, such as Microsoft Excel, Java, or JSON utility. Beginning with AY 2020–21, the income tax division will stop providing the Excel and Java utilities.

In Step 5, enter your information in the downloaded file.

To determine if taxes are needed or refunds are due based on the tool’s projections, enter the relevant information about your income after downloading the offline tool. The information from the income tax challan can be used to complete the form that has been downloaded.

Step 6: Check the Information You’ve Provided

On the right side of the downloaded form, there are a few buttons. Click “Validate” to make sure all of the required information is entered.

Step 7: Changing the file’s type to XML

To convert the file’s format to XML when it has been successfully validated, click the “Generate XML” button on the right side of the file.

Upload the XML file in Step 8 to the Income Tax Portal.

Once you have logged in, go to the income tax e-filing portal and select “Income Tax Return” from the “e-File” menu.

Include all pertinent details, such as your PAN, assessment year, ITR form number, and mode of submission. In the drop-down menu next to the field name “Submission Mode,” as shown in the picture below, make sure to use the “Upload XML” option.

Then, while still attaching the XML file from your computer, click the “Submit” button.

Choose one of the three verification options that are offered: delivering an ITR-V that has been manually signed to CPC in Bengaluru, using the Aadhaar OTP, or using an electronic verification code (EVC).

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