Updated On : 24nd August, 2023
The ending of the financial year is an alarm for taxpayers. As the financial year ends, it brings the deadline close for taxpayers to file Income Tax Returns (ITR). ITR is a form that takes into account your annual income and expenditure, which in turn helps in evaluating your taxable income.
Kew Takeaways
- ITR is a form that takes into account your annual income and expenditure, which in turn helps in evaluating your taxable income.
- There are two methods to file ITR, one is online, and the other is offline.
- You have the option to file ITR through any of the online or offline mediums through the income tax portal.
- If you wish to file ITR offline, you have to download forms and then again upload them to the portal.
- There is no method that can be considered the best among the two offered to file ITR.
As a taxpayer, you have the option to either file ITR online or offline by downloading the form. Both methods are valid and non-complicated. To know the process involved in both the methods and the benefits associated with each of them, you must read ahead.
Understanding Online Filing and Offline Filing of the ITR
You will be amazed to know that offline filing of the ITR is the online process itself. By saying it offline, the government meant to download the offline utility instead of online utility software to file the return. Therefore, if you need to file ITR offline, you have to download forms and then again upload them to the portal.
You have the option to file ITR through any of the online or offline mediums through the income tax portal. However, some people believe filing ITR through offline mode is safe as online ITR filing may expose you to the risk of loss of data due to various reasons, including session time out, failure to click on the “Save” draft option, etc.
The other group of people believes online ITR filings are comparatively faster and more accurate than offline mode. They believe that the software doesn’t allow you to commit errors or miss out on any essential information. There is also an option to validate the details, which reduces the chances of error.
Moreover, there is no method that can be considered the best among the two offered to file ITR. It’s the choice of the individual and nothing more than that. To build your better understanding, the sections ahead will describe both these methods of filing ITR. After going through it, you can choose the one which best suits you.
ITR Filing Process
Whether you choose an online medium or offline medium, there are the following prerequisites before you go ahead with the process:
Calculate the Income and the Tax
You must first calculate your income from all sources and claim deductions such as tax-saving investment under Section 80C and so on. Along with this, you must take into account credit for TDS, TCS, or any advanced tax paid.
Certificates of TDS and Form 26AS
You should summarize the TDS amount from TDS certificates received for all 4 quarters of the year. Form 26AS will help you with the summary of TDS.
Choose the Correct Income Tax Form
There are two forms available for filing i.e., ITR 1 and ITR 4. ITR 1 is for people earning income from salary, rent, or interest, whereas ITR 4 is for people who have income from interest, salary, or rent and business. Thus, you must ascertain what ITR form you need to fill out before going ahead to file a return.
File ITR Online
After the above-mentioned process, if you wish to opt for an online medium, you must follow the following process:
- Visit the income tax portal and choose the JavaScript Object Notation (JSON) utility along with the assessment year. Download the utility to work on it.
- After downloading the utility, fill up the income and investment details and check the tax payable or the refund receivable.
- You will see the option of “validate” on the downloaded form. Click on that button to ensure the required information is filled in.
- After the validation, click on the “Generate XML” button. This will convert the file into XML format.
- Post log in to the portal, click on the “e-file” tab to select “Income Tax Return”. Now provide the necessary details along with submission mode choose the “Upload XML” and attach the file and then click on the “Submit” button.
- Choose any of the available verification modes, including Aadhaar OTP, electronic verification, etc.
Offline Filing of Income Tax Return
Some people find offline mediums easy and convenient. For all those who wish to file ITR offline, here is the step-by-step guideline for the same:
- After logging into the portal, go to “e-file” and select income tax return. Now, download the offline utility and choose the current assessment year.
- Now, select the offline filing mode and click on “Downloads” under the offline utility option.
- After downloading the offline utility, run it. The utility version will be updated once you connect to the internet (if needed). Continue by clicking on the “Enter” key.
- You will be directed to the ITR page, where you will find, Returns, Data Versions, and Pre-filled Data.
- Click on “File Returns” on the ITR for the assessment year under the Returns tab to start filling in the relevant information.
- When you are done filling in the details, click on the “Submit” button.
Wrapping Up
The world is chasing the digital landscape, and so is the Indian government. The government has tried to turn most of the facilities digital with reduced paperwork and physical efforts. ITR filing is one such example where efficiency has increased people are getting refunds faster than ever. This has not only streamlined the process but also made it easy for people to retrieve the data anytime, anywhere.
