Filing Tax Return Online

I had once tried e-filing around 3 years back and the tool was pretty complex. I gave up and just shelled out 200 to the tax consultants and never got the refund. (today when I check the refund status, it says that my assessing officer has not sent the refund notice so I don't know who goofed up).

Well, after feedback from a colleague and with nothing interesting to do in office, I tried e-filing again today. And, I must say, I am pretty impressed! The process is actually pretty simple though the instructions are pretty confusing at times. So, here are some explanatory tips to all the software junta who would love to switch to online mode. This can be a very good option for salaried people whose returns are simple and no refunds are expected.

1. Login to https://incometaxindiaefiling.gov.in/portal/index.jsp and create your user id password. Your PAN no would be your user id. The password thing is pretty irritating because it simply does not let you go ahead if it feels that the password is not strong enough. And the passwords which it forces you to try are not something which you will ever remember on your next visit.
2. Download the ITR-1 form. I chose the one which includes tax calculation. The first sheet data is pretty simple. You just need to transfer stuff from your Form 16 (which has become too long this year!). Click on 'Calculate Tax' on the calculation sheet and hope that it does the right calculation. Somehow mine had a discrepancy. So, I did NOT import this calculation to the second sheet. If your calculation is correct, you can click on Accept Calculation and it will be reflected in second sheet.
3. Fill in the TDS details in the TDS sheet and the declaration etc in the second sheet.
4. Click on validate buttons on each sheet. And then on 'Generate XML' on each sheet. Remember, no mandatory field should be left blank. The XML file will be saved on your hard disk.
5. Login to the site and just upload the xml. Choose the 'NON' digitally signed option. ITR-V is generated (password is sent to your email id. It is a combination of your pan no and dob all in small). You simply need to take a print, sign and post it via normal post to a given address. I was a bit skeptical about this part since they don't accept couriers but some colleagues have tried it and vouched for it. I will update this once I get the confirmation.

As a related thought, you can also check your refund status on the site. You can do it here. But, you have to pray that the processing is on!

As another related thought, the PAN process has also become very simple. Will talk more about it later.