File Income Tax Return Online in India for Free in 10 Minutes



In this tutorial we will see, how to file your IT Returns online in just 10 minutes. It's very easy task even for a layman. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department, no need to pay to a broker, no fear of losing any document, and last feeling of self satisfaction :)

Why Filing ITR is Important

  1. If you are expecting any refund of tax, unless you file the return, you will not get your refund.
  2. If you have some other source of income in addition to salary (such as rent, interest, capital gains etc. not disclosed in form 16), and if you do not file your return, this can be treated as undisclosed income and liable to tax, interest and penalty from tax department.
  3. It is mandatory for certain set of people to file their return irrespective of their tax status (eg. Owner of immovable property, 4 wheeler, credit card etc.)
  4. IT return is an important financial document which many banks ask for while applying for loan etc.

What will happen if you don’t file ITR

  1. If you are expecting a refund, you will not get the same
  2. If you fall under the set of people for whom filing is necessary or if you have any other source of income, the tax department can impose interest/penalties.

Steps to eFile ITR:


(1) Open official site for filing income tax in India (incometaxindiaefiling.gov.in)

(2) Navigate to Download > e-Filing A.Y. 2011-12 > Individual, HUF


(3) Go down the page and download excel utility (ITR-1)

(4) Extract the file to a folder ( This is important ). Open the file and enable macros.

(5) Fill all the details which are mentioned in the excel using form 16 provided by your company. If you face any problem in filling these fields, just drop in a comment or check the next section.
Don't forget to mention if you want IT returns in form of cheque or via account transfer. If you choose account transfer, you will need MICR code for the branch. You can find the same @ http://rbidocs.rbi.org.in/rdocs/content/docs/67440.xls

(6) After filling all the details on each page, click Validate on each page to validate the entries. This will validate all entries and will let you know if you forgot to fill some. Now click on Calculate Tax.

(7) Click on Generate XML. This will generate an XML file at same location as that of excel file.


(8) Now go back to the site for filing income tax and navigate to Submit Return > Select assessment year > AY 11-12.

(9) Register for an account with appropriate details, providing your PAN card.

(10) After registering again navigate to Submit Return > Select assessment year > AY 11-12 and login with the same credentials.

(11) In 'Select form name', select ITR-1 and click on next.

(12) Upload the XML file generated earlier.


(13) Instantly your ITR-V form is generated (sometimes the ITR-V form will not be mailed to you, so please save the ITR-V form which is generated on the screen).

(14) Take two prints of ITR-V form. You can obviously use free office printers :)

(15) Send the ITR-V form on the address mentioned above the ITR V form within 120 days of uploading the XML. Use only normal post.

(16) After IT department receive the duly signed ITR V and verify it, they will send you the acknowledgment mail to your mail-id. This will complete the whole process.

This acknowledgment mail is important, so keep it with you along with ITR V form.

Enjoy!!! Your tax filing is done in not more than 10 minutes and in only Rs. 5 ( Postal Cost )

Points to Remember

  1. Income Tax Ward / Circle field in excel is not required.
  2. Return filed under section field in excel , don't change the default value.
  3. Gross Total Income (1+2c) field in excel , this you can get in Form 16 mentioned as 'Income under the head salaries'
  4. Sign here field in excel is not required, leave it as it is.
  5. Did more investment than mentioned in form 16? Mention those additional investment + investment already highlighted in Form 16. No need to submit any proofs for investment.
  6. All other required fields, you can find in Form 16 easily.
In case there is any mistake in the first time submission of XML, then u can resubmit the XML again, but there are some changes which u need to do :
  1. Change the field 'Whether original or revised return' to 'R-Revised'

  2. Provide the acknowledgment number of the previous ITR-V and mention the date of the first ITRV generation.

  3. Also change the 'Returned files under section' filed to the last option in the drop down i.e. '16-u/s 139(5)'
Home Loan Exemption & HRA

Only one of the below can be claimed by an individual

Home Loan Exemption

1) Already occupied flat/house
  • Interest goes in as –ve in the “Income from house property”
  • Principal goes in as +ve amount in Section 80 C (should be within the 1 lakh cap)
2) Not yet occupied
  • Do nothing, sit quietly and feel jealous/angry (as am feeling now)
  • Once possession is done, can apply 20% of Interest and Principal for a period of 5 years for all the years gone by.
  • Ex; EMI started already since 2010 but possession in Jan 2012 – then while filing returns next year, can apply for entire 2011-2012 EMI + 20% of whatever paid in 2010-2011 tax year.
  • Next year 20% again and so on for a total of 5 years.
HRA: (rent Receipts)

Amount of deduction: Least of the following is deductible u/s 80GG
  1. HRA received.
  2. House rent paid in excess of 10% of salary
  3. 50 % of salary if rented house is situated in Mumbai ,Chennai, Kolkata, Delhi. In any other city - 40 % of salary
Example as per the points above: [amounts are fictional and for entire year] - salary is basic + DA]

1) Actual HRA received : 39,000
2) Annual rent – 10%(basic + da) – say the rent is 13k and 10% of annual salary (basic and DA) is 6885 -> (13000*12) – (6885) : 58,115
3) 40% of salary – if in HYD : Say it is 27,540

So the minimum of a, b, c is 27,540.

This amount goes in the Section 80 GG of your deductions. However, the cap by IT is 24000 and system automatically calculates the amount to 24000 anyway.

Conditions for exemption from filing tax returns

As per the bill issued by the government, no individual will be required to file tax returns for the financial year 10-11 if his income does not exceed Rs. 5 lakh. However, one should file returns beacuse it helps in long run.

Here are the clauses which has to be followed in order to avail the above mentioned policy.
  1. Total income after allowable deductions is up to Rs 5 lakh.
  2. Income is only from salary and savings bank interest.
  3. Salary is from one employer.
  4. Savings bank interest is below Rs 10,000
  5. Tax due on savings bank interest has been paid and included in Form 16
Unable to register for e-filing due to mismatch of name

Some people have reported that they are not able to file ITR online because the system says that name entered by them does not match with their records. This is due to the discrepancy in thier record. Follow the steps below to bypass this issue :
  1. Go to https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp. This is the site to make online payment to the tax dept.
  2. Select 'Challan No. /ITNS 280'
  3. Enter your PAN and other mandatory details and click 'Proceed'.
  4. The screen that comes next will ask you to verify if the name corresponds to the PAN no.
  5. Here's where you will see some discrepancy that the tax dept. database has regarding your name.
  6. Go to url: https://incometaxindiaefiling.gov.in/portal/knowpan.do
  7. Enter the first name, middle name, surname and DOB (here enter the surname which is retrieved from above process), if u r able to get your pan number without any difficulty surely you won’t face any problem for registering with those details.
For now - Use the name specified in the screen to register yourself for tax filing. Later you can file an application to the tax dept to correct your name.

Filing ITR using 2 Form-16 forms ( Previous Employer and Current Employer )

In some cases a person might have 2 Form 16, one from previous employer and second from current employer. In such a case, follow the steps below :
  1. In the 1st page of the ITR 1 Excel, will have put in a sum of income (from 2 companies) and deductions.
  2. In the 2nd worksheet, TDS sheet, you have provision for entering multiple companies, income from the same and tax paid. So you will have 2 rows for 2 companies.
  3. Make sure that the sum of the amounts entered in the 2nd worksheet is same as that of the total entered in the 1st page.
Some Common Misconceptions about Filing Tax Returns:

  1. There is no need to file income tax returns if tax is already deducted by employer This is not true. Even though tax has been deducted you need to file your income tax return. Form 16 received from the employer is not the income tax return.
  2. Since I do not receive much Interest on my SB account. I can ignore it” The Interest earned on savings bank account is taxable.
  3. Omission of income received by a minor child.” A minor child is not required to file a separate return. However, this income has to be included with either of the parents.
  4. “For the rent I pay I get equal amount of HRA exemption”. This is not true; the exemption is lower of: (i) H R A given by the employer, (ii) 40% (50% in case of metro) of Basic Pay + DA (iii) or, actual rent paid minus 10% of your Basic Pay + DA. Thus if actual rent paid is lower than 10% of your basic salary you receive no exemption.
  5. Everyone having PAN requires to file returns” This is not correct, you need to file your tax return only if your income is above taxable limit.
  6. I can avoid giving my email-id, communication address and bank details one should make sure you have provided a valid and functional email address. You are also required to update your bank account details even though there is no refund.
  7. I cannot claim the TDS, unless I have a TDS certificate” False, With the introduction of FORM 26AS, you can view the TDS deducted by your deductor and claim.
  8. I will have to submit form 16 and all other the relevant documents along with the return” The return forms are annexure less. Hence no documents need to be attached. Even if you are claiming deductions which are not considered in the form 16
  9. I do not have to disclose income which is exempt from tax” Even if you have income which is exempt from tax you are required to disclose it in your return.
Facing any issues ? Just drop in a comment for a solution :)




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50 comments:

  1. cool post. really helpful. first useful post, finally :D

    ReplyDelete
  2. Nice and informative post. Thanks !

    ReplyDelete
  3. hi, I have a doubt..in the "Income from Salary / Pension (Ensure to fill Sch TDS1)" column, am i supposed to fill my salary -HRA -conveyance exemption -professional tax?

    ReplyDelete
  4. Also, I want to know where do i fill my tax deducted details? "Details of Tax Deducted at Source from Salary [As per Form 16
    issued by Employer(s)]" or "Details of Advance Tax and Self Assessment Tax Payments"

    ReplyDelete
  5. Under your form 16 you will get : INCOME CHARGEABLE UNDER THE HEAD. You have to fill the same.

    ReplyDelete
  6. You have to fill in 'Details of Tax Deducted at Source from Salary [As per Form 16 issued by Employer(s)]'

    ReplyDelete
  7. Thanks a lott Shubham! gr8 help :)

    ReplyDelete
  8. In the excel sheet, there is a "Sign Here ->" . Can I presume that if I am filing online tax return, I can leave this field empty.
    Additionaly, I am out of country right now. Can I just ask one of my friends to take a print out of ITR-V and send it? And I don't need to sign a physical copy.

    ReplyDelete
  9. For your 1st query, yes, you can leave it blank ! Points to remember, point 4 says the same :)

    For 2nd, you have to sign the generated ITR-V sheet !

    ReplyDelete
  10. Did points to remember just change?

    Point 4 was
    "Sign here field in ITR-V is not required, leave it as it is."
    when I posted my comment.

    ReplyDelete
  11. Yeah, it was meant to be ITR-I form i.e. excel file. Corrected it now, sorry for the confusion and thanks for identifying it :)

    ReplyDelete
  12. Hi, my earning in the year 2010 was only for the period july to december as an intern. And the gross stipend is under the taxable slab, 25k p.m for 5 n half months, but I was deducted 10% tax at source at that time, and now I was given Form No 16A for the same i,e Non salary TDS, now how do I apply for it? 
    I was able to see the Deduction details when I followed the link in the site.. Myaccount-> View Tax credit statement(Form 26AS)..
    But I dont find where to apply my refund, give bank account details etc.
    I believe I can get back the amount deducted, but please help me how.

    ReplyDelete
  13. hi dude ,
    i dont understand the issue with you . is it like you are unable to file the income tax or something else . tell me the exact issue .

    ReplyDelete
  14. also tell me have u followed the steps mentioned above to file the tax . or u have not yet filed it and just for more information u asked this question.
    if you need more info then contact the incometaxindiaefiling.com . still unable to get the details . then mail us . with the proper issue .
    as if getting the returns u are talking its like as soon as u file the tax everything will be calculated and and incase u are to recieve any refunds . then those refunds will be credited to ur account or sent to u by a cheque on the address mentioned in the ITR-V

    ReplyDelete
  15. Very Nice Post indeed...I want to know that if I have made some losses in the capital market, how can I file those in the returns.. ?

    ReplyDelete
  16. wow awesome . people dont file the profit from capital gains  and u r trying for losses. still insist on doing that . then please use ITR2 excel utility from the same website . it captures the capital gains/losses as well
    procedure not known to us . as soon as it comes to us we will publish it as well. :)

    ReplyDelete
  17. Thanks a lot.. nice instructions on how to go about filing income tax returns online..

    ReplyDelete
  18. Thanks Karthik, Glad you liked it :)

    ReplyDelete
  19. hi, i have a doubt. i filed the income tax for the year 2010-2011 now 
    . should i do for 2011-2012 now itself?

    ReplyDelete
  20. Hi Vidhya,

    No you have to file ITR for 2011-2012 in the next year. Please remember for filing the tax for the year 2010-2011, the assessment year would be 2011-2012.

    ReplyDelete
  21. bt i submitted downloaded the form and filled with the form 16 details which i got this month and submitted the xml under assessment yr 10-11. what can be done now?

    ReplyDelete
  22. also pls tell me, which ITR V excel utility i should download. i did in ITR V 2010-2011 and submitted in assessment yr 2010-2011. wat can be done now?

    ReplyDelete
  23. OOPS ! You should have followed the post.

    Call the customer help desk of Income Tax Department ( Will get the number of their site ), and tell them about this issue.

    ReplyDelete
  24. I called up them:( the reply was not clear. she says file the revised form. but revised details we can file if there s any error in info. what if the assessment yr itself is wrong?  can i submit again for 2011-2012 and send the ITR V, the old one which i send will not affect this right?

    ReplyDelete
  25. This is a complex scenario, I'm not aware what needs to be done. However you should file the ITR for last year under 2011-2012 now!

    ReplyDelete
  26. will surely post the solution once i got it:)

    ReplyDelete
  27. Really nice post...:)

    I wanted to file ITR for my father.He is not employed bt have his own business.Do the steps u have mentioned above remains the same or they are different??
    If they are the same then where to get all the information which is present in FORM16 given by the employer??
    N if the steps are different can you please mention them??

    ReplyDelete
  28. Hi,

    For individuals & HUFs having income from a proprietary business or profession, you need to fill Income Tax Return Form 4

    ReplyDelete
  29. Hi,

    I filled ITR-1 online, send the ITR-V to CPC within time and recvd Intimation U/S 143(1) few days before on email.

    My query is - There was refund of 4500, which i have declared in my ITR-1 and in Form 26 AS it is also mentioned deducted as TDS. for AY 11-12. But in Intimation U/S 143(1) does not shows the Refund amount there.

    HELP required.

    Sumit

    ReplyDelete
  30. Hi,
               
     I filed my returns four months back. I received my intimation under 143(1) from IT dept but still the status shows “Your assessing officer has not sent this refund to Refund Banker”. When can I expect my returns to be credited in the account? Or how long it ll take after receiving the intimation generally?

    ReplyDelete
  31. Hi i needed a copy of the return filed by me in the year 2010-2011. will i b able to do so from thru the website????

    ReplyDelete
  32. Hi,

    If you have filed it online, then yes !

    ReplyDelete
  33. Hi,

    Best would be to contact customer care :)

    ReplyDelete
  34. actually i didnt declared My HRA and savings to my employer, now i want to get exemption for HRA and savings as i have proofs for the above mentioned. My question is that even after receiving the Form 16 without this HRA and Savings declared can i file for Exemption through e filling as i have proofs

    ReplyDelete
    Replies
    1. Yes you can! you can manually enter the details in excel template provided to you by Income Tax Dept.

      Delete
    2. hey, can you plz tell where in the excel file are we supposed to specify our additional HRA (and other) details?

      Delete
  35. Many thanks for posting the information which is very helpful for filing the the returns.

    ReplyDelete
  36. Hi,
    I have made some donations which come under 80G. My employer didn't provide me an opportunity to submit the proof at the time of investment proofs submission. I find in this year's excel that we can add the money for 80G too. Can i add it there? If yes, do i have to send across the donation receipt as well while posting the ITRV form to Bangalore?
    Regards,
    Vanu.

    ReplyDelete
  37. Hi, I'm working as Online Tutor I knew I have to fill ITR-IV, as I got form 16A, Which category I come under, 1 Commission agent or 2 Consultancy service or 3 Computer tarining/education, coaching institute?

    My income crossed 1.8 lakhs and SB Interest 540 (should I include it in income) I have read that SB Interest exempted till 10,000/-

    I have paid education loan, but sad that Principal paid won't come under tax exemption from income.

    I'm living in rented house in Chennai, should I furnish receipts for it, or any letter from owner to be sent to IT Dept as proof?
    I have come to knew that I have to fill form 10BA and send it to IT dept. Is that right? Should I send it along with ITR V?

    ReplyDelete
  38. Hi, everyone
    1.I earn from Online Tutoring, under which column should I fill my income in the ITR IV? And I have Rs 594 as SB Account Interest. I’m not able to decide where to enter these in ITR IV. Please let me know in Excel Utility should I enter these in BS or PL page, under which number?

    Under medical bills, they can be for any dependent like spouse, children and parents or assessee or for only disabled dependent?Under which section we must fill these medical bills in ITR IV? Receipts from Private hospital treatment and medicine purchase bills from medical shop should be submitted along with ITR V acknowledgement? What are the receipts or form like 10I to be submitted?

    I’m paying house rent, shall I claim it for deduction? Do I need to submit form 10BA alone or should I furnish the receipts from owner?

    Your help will be greatly appreciated.

    ReplyDelete
  39. Please let me know, in which cell of the excel, I should enter, to claim for medical bills, which I haven't submitted to my employer.

    ReplyDelete
  40. excellent & very useful post makes life easier !!!

    ReplyDelete
  41. What if my post (normal post) does not reach its destination??
    how will i know it has not reached.

    ReplyDelete
  42. Hi,
    I have LIC bills which were not showed as proof of investment in my company and hence they dint get added to my Form 16. So I dont have any returns as per Form 16 as I have paid the total tax. Now how do I need to update in ITR1 form to less that amount and how can I see if I get some returns with this new investment updated in ITR1 or not. Even after adding the total LIC amount in 80C in the excel I am not able to see the returns amount. Please help me on this

    ReplyDelete
    Replies
    1. This year ITR can be filled online only, try doing that, the interface is very nice. Just added your LIC amount under Section 80C and it would reflect the same in your refunds if any.

      Delete
  43. Hi, I have filed my Income tax return this year (2012-2013). How long it will take for the IT department to repay my refunds?

    ReplyDelete
  44. As your accountants and tax advisers V P Associates complete your Self Assessment tax returns for your approval to meet the HMRC strict deadlines and to enable you to pay your self assessment tax by the due deadline.

    ReplyDelete
  45. Let Brighton Accountant Tax Consultants us help you with completion and filing of your Self Assessment tax returns as an authoritative source in the field, with expertise gained over several years.

    ReplyDelete

 

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