While paying income tax is essential, the filing of the income tax return is equally critical. The Income Tax Department has taken steps to simplify the process of e-filing of Income Tax Return (ITR).
E-filing is a simple process of submitting the income tax return if you know the basics. To master the income tax return filing process, follow these six simple steps.
1. Keep Your Documents Handy
While filing the income tax return, the first things you will need are the proofs of your earnings and expenditure. You must have your PAN Card, investment documents, TDS deducted, home loans, children’s tuition fee receipt, and other such documents with you.
To validate or check the tax deducted against your PAN Card, you need to download the form 26AS. It contains the history of tax amount already submitted by you throughout the year.
If your income is more than INR 50 lakhs per annum, you need to fill an extra column called AL. It is a disclosure of your assets and liabilities and its total value.
The second step on your journey to master income tax return is to register on the IT website: incometaxindiaefiling.gov.in.
Provide your PAN Card details, and your birth date in the field allowed. You have to create a password for signing in. The website uses your PAN Card number as the username.
3. Select Mode of Filing Income Tax Return
The income tax department has two modes of e-filing of the income tax return. The first method allows you to fill the tax return online through the quick e-file option. If you follow the second method, you can download the form to your device. Then, you can fill it offline and upload it to the website.
4. Choose the Right Form
Once you sign in to the website, you have to choose the proper form for e-filing your ITR. The Income Tax department has specified several forms according to the profession, so you need to select the one according to your job.
For instance, if you are earning from your salary, pension, or any other interest from property or bank, you need to fill in ITR-1. ITR-3, 4, and 4S can be filled by business owners or professionals. Selection of the correct form is essential to avoid the cancellation of your ITR.
5. Details of Bank Account and Other Income Sources
Some of us may have an additional source of income or multiple bank accounts. Make sure to upload all the necessary documents disclosing the details of these.
You must also note that if you have deposited more than INR 2 lakhs during the demonetization period, you need to disclose it too. You also have to explain the source of the money to the income tax department.
6. Acknowledgment Form or ITR V
After you have filled in all the details and submitted the ITR, you will receive a confirmation of the same, and a number will be generated. If you have digitally signed your ITR, you need to preserve the number and take no further action. However, if your form is not digitally signed, you have to download the acknowledgment form, sign it, and send it to the income tax department through the physical mail or electronically.
Points to Remember
Filing of your income tax gives you a clear insight of your current financial health. When you master the income tax return process, you can know how much tax you are liable to pay. It helps you decide on planning your savings or investments that can aid you in securing your future.