How to File Income Tax Returns in India : A Step-by-Step Guide

By | January 11, 2025
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(Last Updated On: January 11, 2025)

How to File Income Tax Returns in India

1. Determine the Appropriate ITR Form:

  • Understand your income sources:
    • Salary, business income, capital gains, rental income, etc.
  • Select the correct ITR form:
    • ITR-1 (Sahaj): For individuals with income from salary, pension, and other sources (with certain limits).
    • ITR-2: For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
    • ITR-3: For individuals and HUFs having income from business or profession.
    • ITR-4: For individuals and HUFs having income from business or profession under the presumptive taxation scheme.
    • Other forms are available for specific categories like companies, trusts, etc.

2. Gather Necessary Documents:

  • Form 16: From your employer, detailing salary income and TDS deducted.
  • Form 26AS: Downloaded from the Income Tax e-Filing portal, summarizing TDS and TCS (Tax Collected at Source) information.
  • Proof of Income: Bank statements, investment certificates, rental agreements, etc.
  • Deduction Proofs: Documents supporting deductions claimed (e.g., medical bills, tuition fees receipts, investment proofs).

3. Register or Login to the Income Tax e-Filing Portal:

4. Fill the ITR Form:

  • Select the appropriate ITR form and start filling in the details.
  • Use the pre-filled data from Form 26AS to minimize errors.
  • Carefully review all the information entered.

5. Calculate Tax Liability:

  • The ITR software will help you calculate your tax liability based on the information entered.

6. E-Verify Your ITR:

  • Aadhaar OTP: The most convenient method. You will receive an OTP on your registered mobile number linked to your Aadhaar.
  • Digital Signature: If you have a DSC, you can use it for e-verification.
  • EVC (Electronic Verification Code): Generate an EVC using your bank account details.

7. Submit Your ITR:

  • Once you have e-verified your ITR, click on “Submit” to file your return.

8. Acknowledgement:

  • After successful submission, you will receive an acknowledgement number.

Important Notes:

  • Due Dates: File your ITR before the due date to avoid penalties.
  • Accuracy: Ensure all the information entered in the ITR is accurate and complete.
  • Seek Professional Help: If you encounter any difficulties, consult with a Chartered Accountant (CA) or a tax professional for assistance.

Contact CA Satbir Singh on Taxheal@gmail.com for filing Income Tax Rrturns in India

Disclaimer: This information is for general guidance only and should not be considered professional tax advice.