A Comprehensive Guide To Self-Filing Income Tax Return

Every taxpayer in India has an important civic duty to file income tax returns. It’s not just about making sure the law is followed, but it also helps people get different financial rewards and keep things transparent. Many people may find the procedure intimidating and take help from ITR consultants also referred to as tax filing consultants. But with the correct knowledge and assistance of e filing services, filing your own income tax returns in India can be a simple and enjoyable experience. This blog walks you through filing your income tax return individually.

Recognize Your Eligibility

It is essential to ascertain your eligibility to file income tax returns before beginning the process. In India, filing tax returns is mandatory for anyone who meets at least one of the following requirements:

• Individual taxpayers whose yearly income exceeds the basic exemption threshold, which is now Rs. 2.5 lakhs for those under 60.
• People who need a refund and have yearly incomes of more than Rs. 5 lakhs.
• People who possess overseas assets or receive income from foreign sources.
• Individuals with capital gains or those working in speculative industries.
• People who want to carry losses forward for future adjustments.

Obtain Required Documents

Next, assemble all the paperwork and data you’ll need to file your income tax return. The key records consist of:

• Form 16: This statement of your pay income and tax withheld at source (TDS), provided by your employer.
• Form 16A: If you receive income other than a salary and TDS is withheld from such income, the deductor will give you this form.
• Gather your bank statements for all of your current and savings accounts from the past fiscal year.
• Evidence of Investment: Keep track of investment proofs such as home loan certificates, 80C investments (including LIC, PPF, and NSC), and other allowable deductions.
• Form 26AS: Based on the TDS deducted by various deductors, this form displays the tax credit that is available in your name.

Select the Proper Income tax return Form

To ensure accurate filing, choosing the right Income Tax Return (ITR) form is crucial. Different kinds of taxpayers and their sources of income are catered to by the various ITR forms. Some typical ITR forms for individual taxpayers include:

• ITR-1 (Sahaj): For people who receive income from a salary, a single-family home, and other sources including interest.
• ITR-2: For people and HUFs who receive income from all sources besides their profession or place of business.
• ITR-3: For people or HUFs who are partners in a company and make money from their profession or business.
• ITR-4 (Sugam): For people, HUFs, and companies (other than LLP) with presumed income from a business or profession.

In order to avoid discrepancies in your record, please use the correct form.

• To establish an account, please proceed with the registration process on the official website dedicated to income tax.
• You must register for an account on the Income Tax e-filing portal before you may submit your income tax return online. Register and access your account.

Individual Information Field

Fill out the portal with your personal information, including name, PAN (Permanent Account Number), birthdate, and contact details.

Decide on the Correct ITR Form and Assessment Year

Choose the appropriate ITR form and the applicable assessment year for the return you are filing.

Detail your income here

Now, provide the income information as specified by the ITR form you chose. You should include all of your income, whether it be from a job, a rental property, investments, a business, or a profession.

Declare Exemptions and Deductions

Your taxable income may be greatly decreased by deductible costs and exemptions. Include any deductions allowed by Sections 80C, 80D, 80G, and any applicable Sections.

Identify the Tax Payable or Refundable Amount

Calculate the amount of tax that is owed or refundable based on the specifics of your income and deductions. The portal uses the tax slabs and rates that are valid for the assessment year to automatically calculate the tax liability.

Pay any outstanding taxes

Use the various online payment options on the platform to pay the remaining tax amount if you still owe money after taking TDS and advance tax payments into account.

Check and file the return

Check all the details for accuracy before submitting your return. When satisfied, use your registered account to electronically submit the return. You might also decide to use a Digital Signature Certificate (DSC) to digitally sign the tax return.

Create and Maintain Acknowledgement

The system creates an acknowledgment form called an ITR-V (Income Tax Return – Verification) after successful submission. Save this form to your computer and keep it there for future use.

Verification Methodology

You must validate your return in order to complete the filing procedure. The following methods are available for ITR-V verification:

E-verification: You have the option of electronically validating your return using tools like the Aadhaar OTP, Net banking, or bank account-based validation.

Physical verification: Within 120 days of filing, print the ITR-V form, manually sign it, and mail it to the Centralised Processing Centre (CPC).

Conclusion

With the proper information and direction, income tax e filing on your own or with the help of IT return filing consultants like Easy IT Returns in India is a chore that is manageable. Understanding your eligibility, assembling the required paperwork, and adhering to the above-described step-by-step procedure will help you file your tax return efficiently and accurately. To avoid fines and take advantage of the advantages of being a responsible taxpayer, keep in mind to file your taxes by the deadlines mentioned. If you need any help as a first-timer, feel free to approach Easy IT tax filing consultants.