Step-by-Step Guide to File Income Tax Returns Online & Offline

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A step-by-step guide to file income tax returns Online & Offline is going to be very helpful for all of us.  As we all know, ITR filing is mandatory for every salaried person having an income of over 2.5 Lakhs. Furthermore, if you have no tax liability, even then you have to file ITR.

However, a lot of people tend to avoid filing ITR as they face several difficulties in the process. Therefore, In order to assist you with ITR Filing Online and Offline, we bring you this article.

This article will be a Step-by-Step Guide to file income tax returns Online and Offline.

What is ITR?

An income tax return is a document that a person uses to report his or her earnings, spending, tax deductions, investments, and taxes, among other things to the government. The Income Tax Act of 1961 makes it necessary for a taxpayer to file an income tax return under a variety of situations.

For example, a taxpayer may desire to submit an income tax return to record his income for the year, carry along losses, claim a tax refund, and claim tax benefits, etc. The income tax portal provides facilities to file Income tax returns online and it is known as ITR Filing.

Before, we get into a step-by-step guide to file income tax returns Online & Offline, Let us understand the types of ITR and things to keep in mind while filing ITR.

Types of ITR – Guide to file ITR(Income Tax Return)

In general, there are seven types of Income Tax Returns(ITR). These are as follows.

ITR- 1

ITR-1 is for the resident individuals who have an annual income in the following cases.

  • Pension or Salary
  • House Property
  • Other Sources such as Winning in Lottery or Horse Races
  • Agricultural Income up to Rs. 5000.

ITR-2

This ITR form also applies to individuals and HUF who have an annual income from the sources as in ITR-1.  However, it also includes –

  • Firstly, Income from Investments in unlisted equity shares at any time during the financial year
  • Income as a resident not ordinarily resident (RNOR) and non-resident
  • Income from Capital Gains or Foreign Assets/Foreign income

ITR-3

Individuals or Hindu Undivided Families that earn income from a proprietary company or profession have to file the current ITR3 Form.

ITR-4

Individuals and HUFs, Partnership companies (other than LLPs), who are residents of the country and whose total income includes:

  • Presumptive income under sections 44AD and 44AE for business income
  • Presumptive income under section 44ADA: Professional income
  • Rent or salary income up to Rs. 50 lakh
  • Income from one property that does not exceed Rs.50 lakh (excluding any amount of lost or brought forward loss).
  • Other sources of income that is less than Rs.50 Lakh

ITR-5

ITR 5 is for businesses, LLPs, Association of Persons, BOIs, Body of Individuals, Artificial Juridical Persons (AJP), Estate of the deceased, Estate of Insolvent, Business trust, and investment fund.

ITR-6

The return for Companies other than those claiming exemption under section 11, (Income from property that is held for charitable or religious purposes) must file ITR-6 electronically.

ITR-7

Individuals and companies that are required to provide returns under section 13(4A), 139 (4B), or section 140(4C), or section 339(4C), or section 4D, or section 39(4D), or section 13(4E), or section 135(4F) also need to file ITR-7.

Things to Keep in Mind before Filing ITR

Before filing ITR, there are several tips that you should keep in mind. For instance, Check the Form 26AS carefully and Understand the importance of Form-16.

Form 26AS is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer.

On the other hand, Form-16 is Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees.

To understand these things in detail, you can visit –

Why should Form 26AS be checked before Filing ITR,  and

Importance of Form 16 and Form 26AS While Filing a Return

Furthermore, taxpayers should properly calculate tax payable to claim the refunds properly. All income sources, such as salary, freelancing, and interest income should be considered in the calculation.

Step-by-Step Guide to File Income Tax Returns Online & Offline

To file ITR on the Income-tax portal, firstly you have to register on it. To register on Portal, You can follow the steps as follows. Mention our steps

  • Firstly, Go to the income tax portal at –  https://www1.incometaxindiaefiling.gov.in/home
  • Secondly, On the upper right side, Click on Register Yourself.
  • Mention the details such as whether you are an individual or a business entity.
  • Then, fill in the required details such as PAN, Mobile Number Etc.
  • Lastly, You need to verify the details through mobile number and Email by entering One time passwords(OTPs) respectively.

After registering the account, you can log in into the portal and start filing ITR Online or Offline.

Guide to file income tax returns Online

The ITR Filing is available online for only two forms. These are ITR1 and ITR4. The steps to file these forms are as follows.

  • Go to the Income Tax e-Filing portal, www.incometaxindiaefiling.gov.in.
  • Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  • Click on the ‘e-File’ menu and click the ‘Income Tax Return’ link.
  • Then the PAN will be auto-populated and then you have to select details such as Assessment Year, ITR number etc.
  • Click on Continue and fill in the instructions carefully.
  • Then, verify the form by choosing the save and preview option.
  • Lastly, select I would like to e-verify and enter the OTP when asked.

Guide to file Income Tax Returns Offline

It is interesting to note that ITR File Offline has to be done online too. The only difference is in ITR Online you can fill the forms online on the portal. On the other hand, to file ITR offline you have to download forms and then again upload on the portal.

For online Income Tax Returns Offline, you may need offline utility software, i.e.

Microsoft Excel or Java, or JSON utility depending on your preference. Following are the steps to file ITR Offline-

  • Firstly, Download the utility software and calculate the relevant details asked in the form.
  • Secondly, On the downloaded form, click on Validate.
  • After successfully validation, click on ‘Generate XML’ on the right hand side of the form.
  • Then upload the XML File to the income tax portal by clicking on the ‘e-File’ tab and entering the necessary details.
  • Lastly, Click on the Submit and verify it through OTP or any other preferred method.

In conclusion, Income Tax Return filing is the mandatory process in India to avoid legal penalties. Furthermore, the benefits of ITR Filing are several. Therefore, one must file ITR accurately and on time with the assistance of professionals to be hassle-free.

Essentials point to keep in mind before filing ITR this year

Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.

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