There are several steps involved in filing an Income Tax Return (ITR) in India.
1- Collect Essential Documents.
Collect all the essential documents, such as your PAN card, Aadhar card, Form 16, TDS certificates, bank statements, investment proofs, and other documents if needed.
2-Find suitable ITR Form:
Select the right ITR form based on your income sources and financial situation. The most common ITR forms include ITR-1, ITR-2, ITR-3, ITR-4, etc. Each form is meant for specific types of taxpayers.
3-Calculate Your Income:
Calculate your total income for the financial year by combining income from various sources, such as salary, business income, rental income, capital gains, etc.
4-Calculate Tax Liability:
Calculate your tax liability by applying the applicable income tax slabs and deductions. You can use online calculators or consult a tax professional for assistance.
5-File Your ITR Online:
The most well-known and advantageous method for documenting your ITR is online through Income Tax Department’s official website or approved e-filing gateways. Follow these steps:
- Visit the Income Tax e-filing website (https://eportal.incometax.gov.in).
- Register if needed or log in to your account if already registered. If you don’t have an account, you can create one by providing your PAN, Aadhar, and other required information.
- Select the appropriate ITR form and assessment year.
- Fill in the required details in the online form. You may need to enter your income details, deductions, which confirms you the tax payment.
- Verify your details and click on the “Submit” .
- After submission, you will receive an acknowledgment number. This is proof that you have successfully filed your ITR.
6-E-Verify Your ITR:
After filing your ITR, it’s essential to verify it. You can do this electronically using methods like Aadhar OTP, net banking, or by sending a signed physical copy of ITR-V to the Centralized Processing Center (CPC) in Bangalore.The CBDT has reduced the time limit of ITR verification to 30 days(from 120 days) w.e.f. 1 August 2022.
7-Keep Your Return Record:
Maintain copies of your filed ITR, supporting documents, and acknowledgment receipt for future reference.
8-Pay Due Tax if Any:
If you owe any additional tax, make sure to pay it before the due date. You can do this online through the Income Tax Department’s website.
9-Respond to Notices If Received:
If you receive any notices or communication from the Income Tax Department, respond promptly and provide the required information with professional advice.
10-Seek Professional Help:
If your financial situation is complex or you’re unsure about how to file your ITR, consider consulting a tax professional or CA (Chartered Accountant) for guidance.
Note:
Remember that the due date for filing ITR may change each year, so it’s crucial to stay updated with the latest deadlines. Filing your ITR accurately and on time is essential to avoid penalties and legal issues.
