ITR Filing: If you are an income taxpayer, this news is particularly relevant to you. Whether you are employed, run a business, earn through freelancing, or have other sources of income, you are required to file an Income Tax Return (ITR) based on your specific situation. You no longer need to visit an income tax office to file your return; you can do so online from the comfort of your home via the Income Tax Department’s e-filing portal. The official portal offers options in multiple languages, including Hindi, making it easier for first-time filers to understand the process.
What is an ITR?
An Income Tax Return (ITR) is a form used to provide the Income Tax Department with details regarding your income, tax-related information, and applicable deductions for a specific financial year. Simply put, filing an ITR involves informing the government about your annual income and the tax liability arising from it. If you have paid more tax than required, you may also be eligible for a tax refund.
What should you keep ready before filing an ITR?
It is advisable to have the necessary documents and information ready before filing your return online, though the specific documents required may vary depending on the nature of your income. Generally, you will need your PAN card, Aadhaar card, bank account details, Form 16, salary details, information on bank interest earned, investment-related documents, TDS details, etc.
How to file an ITR online?
You can file your income tax return from home; the process is quite simple.
First, open the Income Tax e-filing portal.
Next, look for the login option.
If you already have an e-filing account, log in using your PAN and password.
You may need to authenticate your login using an OTP or another verification method.
After logging in, navigate to the ‘e-File’ option.
Select the relevant Assessment Year.
Finally, declare your sources of income. Income from Employment or Salary
If you are employed by a company or organisation, your primary income is likely your salary. In such cases, Form 16 is very useful. If you earn income from a business, shop, profession, or freelancing, a different Income Tax Return (ITR) form may apply to you. You may also need to report income from bank interest, rent, investments, or other sources in the ITR.
Verify Your Personal Information
Please note that certain personal details—such as your name, PAN, address, mobile number, email ID, and bank account information—may already be visible on the portal. Verify these details; if any are incorrect, use the available options to correct them.
Enter Income Details
First, review your income details. You are required to provide information regarding your various sources of income. If you are employed, verify the details related to your salary and Form 16. Additionally, if you have other sources of income, these must also be included in the Income Tax Return in accordance with applicable rules.
Enter Deduction Details
If you are eligible for any tax deductions that can be claimed in the ITR, enter the relevant details. For instance, depending on your situation, certain investments or expenses may qualify for tax deductions. However, not all investments offer tax exemptions, and rules may vary across different tax regimes; therefore, ensure you check the applicable rules before claiming a deduction.
Check Tax Calculation
The portal may display tax-related calculations based on the information you have provided. Review your total income, the TDS amount, the tax already deposited, any outstanding tax liability, and whether a refund is due. If any information is incorrect, rectify it before submitting the form.
Pay Outstanding Tax
If the calculations indicate that additional tax is payable, you must make the payment in accordance with the prescribed procedure. After making the payment, update the details in your Income Tax Return (ITR) correctly.
Submit the ITR
Submit the ITR only after verifying all the information. However, review the entire return before submission. Pay special attention to details such as your name, PAN, bank account information, income, TDS deductions, tax calculations, and refund-related data.
Don’t Forget to e-Verify the ITR
Submitting the ITR is not the final step; e-Verifying the return is also mandatory. You can electronically approve your income tax return using the options available on the Income Tax Department’s portal. If eligible, you can utilise the e-verification facility via Aadhaar OTP. Failing to verify your income tax return on time can cause processing issues.
What to Do After Filing the ITR?
Once you have submitted and e-verified your ITR, you can check its status through your e-Filing account. If you are entitled to a refund, having accurate bank account details is essential. Therefore, before filing your ITR, ensure the bank account where you want to receive the refund is entered correctly and validated.
Important Points for ITR Filers
If you are filing an ITR for the first time, avoid entering incorrect information; carefully review Form 16 and cross-check the details with your AIS and Form 26AS. Also, make sure you select the correct Assessment Year.