Individuals who are submitting their first income tax returns may find the procedure intimidating. The government has recently made it easier to submit ITR. With all of the required paperwork in hand, ITR filing can be completed in less than 30 minutes. The filing date for income tax returns is July 31. Failure to do so might result in a Rs 5,000 penalty, even if you have paid all of your taxes. It is crucial to highlight that regardless of whether you pay taxes or not, filing your ITR has a number of advantages.
Easy Steps To File ITR
Step 1: Go to the official Income Tax e-filing website at www.incometax.gov.in.
Step 2: Log in to your account using your user ID and password (if you are a first-time payer, sign up to create login information.)
Step 3: After logging in, go to the homepage and select the e-file option.
Step 4: From the tab, select the direct link to Income Tax Return.
Step 5: A screen with an online ITR form will appear.
Step 6: Fill out all of the required information.
Step 7: Next, go to the ‘Taxes Paid and Verification’ area and select whether or not you wish to e-Verify.
Step 8: Review everything carefully before clicking the submit button.
Documents Needed For Filing ITR
Every year, you will get Form 16 from your workplace by June 15. It is a record of your taxable income for that fiscal year. Form 16 details your yearly income, taxable and exempted allowances, claimed deductions, and more.
Keep all of your salary slips for the fiscal year close to hand. These slips include information about your pay, deductions, and allowances.
You may obtain Form 26AS from the official e-filing website, and it will automatically update with each TDS payment made to the tax authorities from your earnings. Form 26AS is a joint statement that contains important information for claiming deductions and computing total income. It also provides information on TDS deducted from your earnings and payments given to you.
Gather any pertinent information on investments in tax-saving instruments such as Provident Funds, National Savings Certificates, and insurance policies. You can deduct these investments under several parts of the Income Tax Act.
Annual Information Statement (AIS)
The Annual Information Statement (AIS) covers critical information such as mutual fund transactions, dividends, interest, securities transactions, and foreign remittances.
Which Form To Choose While Filing Your ITR
When submitting tax returns, taxpayers must be cautious and report income from all sources. In this case, selecting the appropriate form depending on income sources and financial position is critical for proper filing.
The ITR-1 form is for those whose total income is less than Rs 50 lakh. It is most suited for those who earn salaries and have income from one house property as well as other sources such as interest, etc.
Hindu Undivided Families (HUFs) and people who do not engage in any company or profession under a proprietorship must complete ITR-2.
Individuals and HUFs with income from a proprietary company or profession must complete Form ITR-3.
This ITR is for taxpayers who have presumed income from a company or profession.
Verification of ITR Information
The final step after properly filing your ITR is to validate it. The verification procedure can be completed either online or offline. To view and validate their returns online, taxpayers can utilize the Aadhaar One Time Password (OTP). The Income Tax department will send an e-verification email to validate the verification procedure. Taxpayers using the offline mode, on the other hand, must transmit a physical copy of the ITR form to the Centralised Processing Centre (CPC) in Bengaluru.