Online Indian Passport application procedure

Due to my extensive experience with the passport authorities in the recent past, I have become somewhat of a passport process expert and the best thing an expert can do is share his knowledge. :)
So here I am.
Now the passport application procedure has become totally online and ONLY online. You cannot walk into the passport office and apply, unless you are applying for a diplomatic passport or a really emergency case like death of a relative etc.
Lets cut to the chase now.
Before you start reading below, if you already have a good idea about the process and just want to clear something check out the answers to questions in the comments below or the official FAQs- http://www.passportindia.gov.in/AppOnlineProject/online/faqServicesAvailable.
Okay? Lets go ahead.
This is what you should do.
First Register and login here:
http://www.passportindia.gov.in/AppOnlineProject/welcomeLink
Registration needs an email and your date of birth that's all.

1. Download the passport application pdf. 
2. Fill it and Save it.( pretty simple).
3. If that does not generate a validated xml file for you, then just export the pdf to xml, open this xml file in notepad and change the “Not valid” value to “Valid” near the bottom of the file.
4. Upload this xml file to the site. No need to upload any documents.(in fact you can’t!). You can upload many applications with the same login(For eg- your and your wife’s)
5. Then just book an appointment using the manage appointment link (you can book up to 10 days in advance, meaning you’ll probably get an appointment for the next week.). For each application you’ll have to book a separate appointment. The apps are distributed into 45 min time slots starting at 9:30 and ending with the 3:30-4:15 slot. Closed on sat and sun.
6. On the day of the appointment,

• Take a printout of the appointment letter(No need to take printouts of passport application)
• Take an address proof(No IT return statements)
• Take an ID proof.
• If married, take the marriage certificate…and a copy of that. No combined affidavit or anything. That’s all.
• Take an ECR proof(10th certificate)(Degree certificate isn’t accepted. Strange, but true.)
• Take the required amount of cash.
• Be there on time. (Reporting time) Don’t be there early; you’ll have to wait unnecessarily. In fact you could be there just at the time of your appointment and you’ll be fine too, but why risk it?
• If not under tatkal scheme you are good to get it done with what I told above. For a tatkal, get an Annexure F(signed by the competent authority(check list on site) on their official letterhead and also a Xerox of their photo id signed by them. Also get an annexure I and notarise it. Get some more cash. 
• This is all you need for a new passport. For a renewal, get the copies as well as originals of your previous passports, front and back pages will do. (Also ECNR page if there’s anything there)
• If you need any modification in existing passport details, repeat the same process as for a renewal. You will need to get an address proof. The passport itself is an ID proof.

    7. Once inside the PSK you'll have a 4 stage processing before you are let out of the premises. At each stage you'll be given token numbres and you'll wait for your number to be announced. The PSKs are all centrally AC, so it ain't so bad.

• The documents check section: This section is like a movie ticket queue. Here the person across the counter will check your documents(originals as well as copies and verify if what you have brought as proofs will actually be accepted. He will send you back or give you a new appointment(mostly for the next day morning) if the proofs do not meet the criteria or are less than required or you have missed something or if there are spelling mistakes in your names or something. This is the elimination stage. You get through this stage, you'll probably get your passport application accepted. After the guy is satisfied that you have all the documents as well as copies necessary, he will print and give you a token number(barcode which you'll use to get through the turnstile and into the next stages of the process. He will also give you back all your documents and copies and put them in an office file for you.
• The identity verification and uploading section: This is where you get to sit in a nice cubicle and talk one to one. Here they'll check your docs once again, take your self attested photocopies and scan and upload them into their database. They'll also take all your finger prints and photo here. Once they are done with this they will ask you to verify if what is in the application is all correct and if you want to change or add anything here. For eg. some street name might be less or wrongly spelt in the application. Once you are okay with it, they'll take the application fees from you and give you a receipt and another token number for the next stage along with your all your documents.
• The Passport official approval: Here you get to see the actual government passport official. He'll mostly see you, check you application, may or may not ask any questions and then stamp an approval on your application. They won't ask you anything unless you have the look of a terrorist or have proofs which are obviously fake. He doesn't have enough time to chat with everyone that comes to him. He will stamp and write an approval on you token from the previous stage and ask you to go to the next stage. 
• Application receipt collection: This is the last stage. Here you collect the receipt which will have your application number which you can track online.
• Exit: These 4 stages will take anywhere from 40 mins to 2.5 hrs depending on the rush and kind of applicants who apply along with you.

NOTE: For documents- Get all the originals, Sign yourself (self-attest) on all the copies.
And there’s a copy machine inside the premises of the PSKs so don’t panic if you don’t have some copy.
Take a pen.
Don’t take a photo.

VERY IMPORTANT:
1. For all the proofs that you take, make absolutely sure that all the names are exactly as in the passport application. They will reject the proof if the names are different or have lesser prefixes or surnames or anything at all. If the names are different, that’s when you might want to look at the affidavits section in the site.
2. The payment you make is tied to the ARN number in the system and not to the login. So be very careful while filling and submitting the form. Any major mistake and you will have to fill a new form, re-apply AND ALSO REPAY to get that mistake corrected. If you still make a mistake, I suggest you try your luck once at the PSK to correct the mistake, because you will lose the money anyway.

EXTRA INFO:
And yeah, for a normal application once you have submitted the application it will take about 1 month for the police officer to come to your house for verification and about 15-20 more days for the passport to reach you. If you aren't seeing any progress you can log an RTI and get what exactly is going on with your application.
For a tatkal application you will get your passport definitely within 7 working days. The police officer will reach you within 3 weeks. Although, you should know this that you cannot leave the country without the police verification report on your passport. So plan accordingly.

Q&A -
If you made a mistake and already paid the fees, all you can do, is pray that the PSK guys accept your change. Otherwise, check point 2 in VERY IMPORTANT again.

That’s all the information you’ll need.
Enjoy your application experience!