Filing income tax returns is an annual chore...
But, fortunately, it gets easier each year.
Unlike years past, where filing through your CA was probably the easiest option, you can now go to the tax department's website or a tax aggregator and complete your filing without stepping out of your home.
If you are submitting your returns yourself, nothing beats the convenience of being able to efile through your net banking account.
Yes, your netbanking account can be used to efile your taxes. And the whole process takes less than a few minutes.
In this post, I will do a quick walkthrough of this process...
Two Benefits of e-filing through net banking
1. No need to remember a separate password
You file your return once a year.
And if you are like the majority, that probably means you visiting the tax department's website once a year too.
In all probability, this annual visit means that you won't remember your portal password and will have to reset it every single year.
And if it was your CA who created your account on your behalf, you will find it difficult to reset your password too.
You won't know the answers to secret questions and you won't have access to mobile numbers or email ids that your CA used.
Effectively, you are stuck.
However, if you file through net banking, you don't need to remember your efiling portal's password and you will be logged in automatically. Plus you are inside your efiling account, you will be able to change your personal details quite easily without resetting your password.
2. Easiest e-Verification
There was a time when you had to send your ITR-V to CPC Bengaluru necessarily. And this had to be sent via post.
Now, finding post office itself was a bit of a chore. It took most of us anywhere from a day to a week to find one and send ITR-V to Bangalore.
Then there was this additonal wait of anywhere from a week to a month for IT department to acknowledge receipt of your form.
Effectively, while actual IT returns took a few minutes, the process of printing, sending and then waiting for final acknowledgement took many days if not weeks.
Fortunately, starting 2015, IT department has enabled e-verification. And there is no need to send a signed copy of ITRV form anymore. The entire verification process can be completed fully online now.
And amongst all these online everification options, the one through netbanking is the easiest.
If you have filed through netbanking, the everification will take just one click as your identity has already been authenticated when you logged into your net banking account.
Doesn't get easier than that.
With that, let's now look at the exact process of filing IT returns using your netbanking account...
Exact Step by Step Process
The first thing you should know before you try to efile through netbanking is that this facility is not available with every bank.
While most scheduled banks have it, most cooperative banks may not. Following is the list of 34 banks that can be used to efile your taxes:
List of banks who provide e-filing facility
- State Bank of India
- ICICI Bank
- HDFC Bank
- Axis Bank
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- City Union Bank
- Corporation Bank-Corporate Banking
- Corporation Bank-Retail Banking
- Dena Bank
- Equitas Small Finance Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- IndusInd Bank
- Karnataka Bank
- Kotak Mahindra Bank
- Oriental Bank of Commerce
- Punjab National Bank
- Punjab and Sind Bank
- South Indian Bank
- Syndicate Bank
- The Federal Bank Limited
- The Karur Vysya Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- Yes Bank
If your bank is not in this list of 34 banks, don't despair as IT department adds more banks everyday [You may check the latest list of authorized banks here]
If your bank is already in above list, the actual process of efiling is very easy.
In Nutshell, you will have to login into your account using your regular netbanking user id and pasword and search for tax efiling link. This link will be under tax, request or services tab.
Once you locate the link, you will need to confirm your PAN and personal details. If there is no mismatch as such in your netbanking and efiling account details (i.e name, pan, date of birth etc), you can proceed to your efiling dashboard and you will be automatically logged in.
From here on, the process is exactly as efiling your returns directly on IT portal
For the purpose of more clarity, let's look at the exact steps involved if you try to file through ICICI or HDFC bank (top 2 private banks). The process for all other banks is pretty similar.
e-filing through ICICI bank
Step 1 - Login into your account.
Click on PAYMENTS & TRANSFER and then go to TAX CENTRE
Step 2 - In case you are asked to enter your OTP details to verify yourself, provide same.
Step 3 - Once you are inside Tax Centre, you will see many tax related options. Look for a section to e-file your taxes. This section will look something like below.
Click on E-FILE NOW
Step 4 - Verify your PAN number as well as your account number (relevant in case you have multiple accounts linked to the same netbanking login). Click SUBMIT.
Step 5 - Once you hit submit, you will be taken to IT portal and will be logged in automatically.
From here on, the process of filing your return is exactly the same as if you have logged in using your income tax portal's credentials.
You can click on 'Quick e-file ITR' to quickly file your return or download your old returns starting 2007-08 or avail of any other option in efiling portal as needed.
e-filing through HDFC bank
Step 1 - The process for HDFC bank is mostly similar, but you will need to access the efile link through the Requesttab. Click on this tab to open all the services offered by HDFC.
Step 2 - Once you click on Request tab, you will see a bunch of service options.
Scroll down till you see Income Tax E-Filing. Click on that option.
Step 3 - You will be taken to a confirmation screen.
If you have multiple accounts, choose the account you want to link with your IT portal.
Verify that your name and PAN number are exactly same as those with IT department and hit Continue.
Step 4 - An important thing to note with HDFC is that efiling portal is opened up through a Popup. Enable all popups originating through hdfcbank.com in your browser.
Step 5 - And that's all. Similar to ICICI, you will be auto-logged into your IT portal account and you can now easily file your tax returns.
Once you submit your IT return on portal, you will receive an acknowledgement from the IT department.
However, the process is not yet complete as you will still need to verify your return as that's mandatory.
You can verify your IT return through any of the following methods:
- eVerify through Netbanking
- eVerify through Aadhar OTP
- eVerify through efiling
- Verify through bank ATM
- Verify by sending a signed copy of ITR V form to IT's Bangalore office
As you may imagine, everifying through netbanking is amongst the easiest of above methods. To do so, just follow the exact same steps that you did for efiling but choose the everify option this time.
Things to remember
To efile through netbanking, you need to fulfill few requirements:
- You should be registered with the efiling portal
- Your netbanking account should be active and your PAN number should be attached to your netbanking account
- There should be no mismatch in your name, date of birth and PAN number between your net banking account and efiling portal account.
- Don't forget to everify post your efiling. Your IT return is not complete till you complete the verification process.
Also, remember that your account number, IFSC and PAN details as available with the bank will be automatically shared with IT department.
Also, in case you are eligible for a tax refund, the account number selected by you will be used for same.
And that's all. Let me know in case you have any questions.