How to file your income tax returns online

Are you preparing for income tax filing? The last date for Income Tax Returns (ITR) filing is August 31, 2019. Efiling ITR is mandatory for everyone except super-senior ci�zens aged 80 and above who can con�nue to use paper format returns if they so desire. ITR filing online is an easy process and saves you not only �me and energy, but if you file your ITR before the deadline, you can avoid a penalty of up to Rs. 10,000.

What is E-filing?

ITR filing online is an easy process and saves you not only �me and energy, but if you file your ITR before the deadline, you can avoid a penalty of up to Rs. 10,000.

How to file income tax online?

Filing income tax online is really easy. All you need is to follow these easy steps:

1. Collect relevant papers: You will need Form 16, salary slips and interest cer�ficates. These documents will help you calculate your gross taxable income as well as give you an idea about the tax deducted at source (TDS) for the financial year you are filing. For investments in mutual funds (MFs), you should ask your fund house to provide you a transac�on statement and capital gains statement.

2. Download Form 26AS: You should download form 26AS, which holds all the details of tax that has been deducted from your income during the previous financial year. Check the details of the

transac�ons in Form 26AS and correlate them with your TDS cer�ficates to establish accuracy. It is possible to download Form 26AS from the TRACES website. You can use your login creden�als from the e-filing website, click on 'My account' and select on 'View Form 26AS' to download this document.

3. Calculate total income: Once you have all the documents, you can calculate your 'total income' by combining incomes from five different heads and factoring in all deduc�ons and se�ng off losses, if any.

4. Calculate tax liability: A�er calcula�ng your total income, you would need to calculate the applicable tax rates as per slabs for FY 2018-19 as given in the table below. Once you know your tax liability, deduct taxes already paid through TDS and Advance tax during the year. If there is any interest applicable under Sec�ons 234A, 234B and 234C you should add it to the total tax liability.

5. File your ITR: Once you have paid taxes due, you can file your ITR. If you have any refunds due from the Income Tax Department, you can claim them. You should ensure you use the correct form to file your ITR or it may be termed as a defec�ve return.

6. ITR Verifica�on: There are six methods to verify your ITR; five are electronic and one is physical. If you choose to verify your return electronically, there is no need to send any document to the department. However, if you want to verify it physically, you must post your return to Post Box No. 1, Electronic City Post Office, Bengaluru – 560 100.

In the past, income tax return filing was a complicated process. However, it has now been greatly simplified. Efiling income tax is a simple process and income tax filing electronically is also compulsory for most taxpayers. Ensure that you complete your ITR filing before the deadline to avoid paying any penal�es.

Make the most of your tax deduc�ons

Now that you know how to file your tax returns, you might want to start thinking about tax saving and making the most of the available tax deduc�ons under Sec�on 80 C. Equity Linked Savings Schemes (ELSS) are an easy way to invest in stock markets and get equity linked returns while enjoying the lowest lock in period of any tax saving instrument available. Investments in ELSS up to Rs. 1,50,000 can be claimed as deduc�on during tax filing, saving you a considerable amount of money.

Income Tax Slab Tax Rate for Individuals <60 yrs in Age

Up to Rs. 2,50,000

Rs. 2,50,000 – Rs. 5,00,000

Rs.5,00,000 – Rs. 10,00,000

Above Rs. 10,00,000

None

5% of income in excess of Rs. 2,50,000

Rs. 12,500+20% of total income in excess of Rs. 5,00,000

Rs. 1,12,500 + 30% of total income in excess of Rs. 10,00,000