Filing an income tax return can be initiated in the below-given ways.

1. The first way is to hire a chartered accountant (CA). You can hand over all the necessary documents, such as Form 16 and Form 26AS, to your CA and they will take care of the entire process, from preparing the Income tax return filing. You can then download the acknowledgment from your login area on the Income Tax website. You can take the help of income tax return filing agents in Ahmedabad.

2. Online income tax filing is the second option. There are many different online filing services available, such as Clear Tax and H&R Block. To use an online filing service, you will need to register with the service and then mail all the relevant documents to them by email. Your return will subsequently be prepared and filed for you by the online filing service.

3. DIY income tax filing is the third option. To do this, you will need to download the relevant ITR form from the Income Tax website and then fill it out yourself. Once done you can mail or submit the form online.

Ultimately, the best way to file your income tax return depends on your individual needs and preferences. If you are comfortable with the process and have the time to do it yourself, then filing your return yourself may be the best option for you. However, if you would rather have someone else take care of the process for you, then hiring a CA or using an online filing service may be a better choice.

What Will Filing A Tax Return Cost Me?

There are three main ways to file your income tax return: through a chartered accountant (CA), through an online filing service, or by filing it yourself. Your return cost depends on your method.

Filing through a CA is the most expensive option, typically costing between Rs.1500 and Rs.2000. This is due to the fact that a CA will handle the whole process on your behalf, including preparing your return and filing it with the Income Tax department.

Filing through an online filing service is a more affordable option, typically costing between Rs.500 and Rs.1000. Online filing services will also prepare your return for you, but they may not offer the same level of personalized service as a CA.

Filing your return yourself is the cheapest option, and it is free if you file your return online. However, preparing your own tax return can be a time-consuming and tough process, particularly if you have a complicated financial condition regarding taxes.

If you have a simple tax situation and you are comfortable with the process, then filing your return yourself is the best option.

Filing With TRP Scheme, 2006

The Tax Return Preparers (TRP) scheme was launched in 2006 to incentivize employment generation in the service sector and to help first-time taxpayers file their returns. According to the plan, TRPs are given an incentive equal to the higher of 3% of the tax that an individual paid or Rs. 250 every return. This serves as the TRP’s bare minimum guarantee.

Here’s an illustration of how the computation functions:

• Suppose you owe Rs. 15,000 in income taxes for the fiscal year 2022–2023.
• If you are filing your income tax return for the first time, the Income Tax Department will compensate you with TRP Rs. 450 (3% of Rs. 15,000) as a reward.
• You won’t need to give the TRP any money because the reward already exceeds the required minimum payment of Rs. 250.
• Let’s say, for another example, that you are a first-time taxpayer and that you have paid Rs. 8,000 in taxes.
• In this instance, a bonus of Rs. 240 (3% of Rs. 8,000) will be given to the TRP.
• For filing your IT return, you must pay the remaining Rs. 10 to the TRP.

A TRP may only charge a first-time taxpayer Rs. 1,000 as the maximum filing fee. The cost is only allowed to be Rs. 250 after the second year.

Conclusion

As a taxpayer, you have different filing options. You can file yourself through the e-filing portal, hire a tax advisor, or use an online tax filing service. Filing yourself is the cheapest option and allows you to learn about taxation. However, if you have a complex income tax return, you may want to hire income tax return filing agents in Ahmedabad or use an online tax filing service.

Regardless of the filing method you choose, it is important to ensure that your tax savings investments are in sync with your overall financial plan. You should consult with income tax return agents like Easy IT Returns to get advice on tax saving.