Filing income tax returns is an essential responsibility for every earning individual in India. Understanding the process early on can benefit you in managing your finances efficiently.
Table of contents [Show]
Step 1: Gather the Required Documents
Keep your Permanent Account Number (PAN), Aadhaar card, bank statements, Form 16 (if applicable), and any other relevant income or expense-related documents at hand.
Step 2: Choose the Appropriate ITR Form
For most salaried individuals, ITR-1 or Sahaj form is commonly used. This form is suitable if your total income includes salary, house property income, and interest income.
Step 3: Calculate Your Total Income and Tax Liability
Considering income from all sources, such as salary, interest, rental income, or any other income. Once that’s done, determine your tax liability using the applicable income tax slab rates, deductions, and exemptions available for your age group.
Step 4: Fill in the ITR Form
Now, fill the relevant details, such as personal information, income details, deductions, and exemptions. Be diligent while entering the data to avoid errors. If you are unsure about any section, seek guidance or consult a tax professional.
Step 5: Validate and Generate XML
Validate the filled-in ITR form using the built-in validation utility provided in the income tax e-filing portal. Once the form passes the validation checks, save it as an XML file. This XML file will be required to upload on the income tax e-filing portal.
Step 6: File Your Tax Return Online
Access the income tax e-filing portal (www.incometaxindiaefiling.gov.in) and register yourself if you are a first-time user. Log in to the portal, navigate to the "e-File" section, and select "Income Tax Return" to upload the saved XML file. Choose the appropriate assessment year, verify the details, and submit the ITR.
Step 7: Verify Your Tax Return
After submitting the ITR, verify it using any of the available methods – Electronic Verification Code (EVC) through net banking, Aadhaar OTP, or by sending a signed physical copy to the Centralized Processing Center (CPC) within the specified time. Verification completes the filing process.
Self-filing income tax returns in India can be a straightforward process for young individuals by following a step-by-step approach. It is crucial to stay informed about the latest tax rules and consult a tax professional when in doubt.
Look up more articles here for a smooth first time tax-filing process. All the best!
