Income tax return Individuals and enterprises in India that earn taxable revenue must file their taxes. Income Tax Return Filing not only keeps you tax compliant but also allows you to claim potential refunds and acts as proof of income for a variety of financial activities.
If you’re a beginner, this blog will help you understand the process of Income Tax Return Filing step by step.
Step-by-Step Instructions for Income Tax Return Filing
Follow these simple steps to comfortably go through the procedure of income tax return filing, which is specifically designed to help first-time users succeed.
Step 1: Collect Necessary Documents
Make sure you have all the essential documentation before you begin. These usually involve the following:
PAN Card: You need a Permanent Account Number for filing taxes.
Aadhaar Card: Linked with your PAN for verification purposes.
Form 16: Your employer will provide you with information about your income and TDS.
Bank Statements: To verify income and claim deductions.
Investment Proofs: Proof of investments made through tax-saving schemes such as PPF, ELSS, or insurance policies.
Other Income Proofs: Information on any rental income, interest income, or capital gains.
Step 2: Determine the Applicable ITR Form
The Income Tax Department offers a variety of ITR forms based on the taxpayer’s status and source of income. For example:
ITR-1 (Sahaj): Designed for salaried individuals earning up to ₹50 lakhs.
ITR-2: Suitable for persons who generate supplementary income, such as capital gains.
ITR-3 and ITR-4: For entrepreneurs and professionals.
To find out which form is suitable for you, visit the Income Tax Department website or see a tax professional.
Step 3: Register on the Income Tax Portal
If you haven’t already, set up an account on the official Income Tax e-filing. Follow these instructions:
- Click on “Register” and insert your PAN.
- Enter your personal details, including your name, date of birth, and contact information.
- Make a strong password and finish the signup form.
Step 4: Login and Download Form 26AS
Log in to your account and obtain Form 26AS. This form includes information on taxes deducted at source (TDS) and deposited against your PAN. Check the information again to be sure it is correct.
Step 5: Fill in the ITR Form
You can file your ITR online or download the necessary form and fill it out offline. Here’s how you can proceed:
- Fill up your personal information.
- Declare all of your sources of income, including salaries, interest, and other earnings.
- Include information on any exemptions or deductions, such as those under Sections 80C, 80D, or 10D.
- Use the included calculator to calculate your total taxable income and tax liability.
Step 6: Pay Additional Tax if Necessary
If your tax bill exceeds the TDS deducted, use the e-filing portal’s “Self-Assessment Tax” option to pay the balance. Keep the challan for later reference.
Step 7: Verify Your ITR
Once you’ve filled out the form and paid any outstanding taxes, double-check your information and submit the return. You can confirm your ITR through:
- Aadhaar-based OTP.
- Net banking.
- Sending a signed ITR-V form to the Centralised Processing Centre (CPC) by mail.
Step 8: Acknowledge Submission
Following submission, you will receive an acknowledgement in your registered email address. This document is required for tracking your refund status and providing proof of compliance.
Tips for Smooth Income Tax Return Filing
Start Early: Avoid rushing at the final minute to ensure accuracy and avoid penalties.
Double-Check Details: To receive a refund, make sure your bank account number and IFSC code match.
Keep Records: Keep all documentation related to income, assets, and expenses for at least 6 years.
Use Tools: Online tax calculators and software can make the process easier.
Wrap Up
Income tax return filing does not have to be difficult. You may complete the procedure quickly if you follow these instructions and keep your documentation organized. Remember that timely income tax return filing avoids penalties and keeps your financial records in order.
Return File, your trusted tax compliance partner, offers hassle-free income tax return filing services. Allow us to manage the details while you focus on your objectives.
FAQs
Q.1 How do you file your income tax return step by step?
Ans. Gather documents, calculate income, claim deductions, select an ITR form, file online or offline, and double-check the submission.
Q.2 What is the basic exemption limit?
Ans. The basic exemption amount is ₹2.5 lakh for individuals under 60, ₹3 lakh for seniors, and ₹5 lakh for super seniors.
Q.3 What is an income tax return to file?
Ans. An income tax return (ITR) is a form used to declare income, claim deductions, and pay or get a tax refund.
Q.4 Who is eligible for ITR?
Ans. Individuals, businesses, and entities earning more than the exemption limit or meeting additional conditions, such as overseas income, must file ITRs.
Follow us on Facebook for the latest updates!
