How to File an ITR in India – Complete Guide

Filing an Income Tax Return allows taxpayers to report their income, expenses, tax deductions, investments, and other financial obligations. The Indian government has set up an income tax portal where you can file your income tax. A simple explanation of the entire ITR process is provided in this blog.

Income Tax Returns (ITRs): What Are They?

The income tax return is used by the IT office to record a taxpayer’s annual income. Whether you have taxable income or not, there are various reasons to file an ITR and give respond on income tax notice. Income tax returns are also used by taxpayers to declare their taxes. Taxpayers are required to file income tax returns under various circumstances under the Income Tax Act of 1961.

A taxpayer may need to file his income tax return with the Internal Revenue Service in order to record his income, carry forward losses, claim a tax refund, claim tax deductions, and for other purposes.

Is it mandatory to file ITRs?

Indian tax law requires you to file an income tax return if your income exceeds the basic exemption amount. Taxpayers are subject to a predetermined rate of income tax. The failure to file returns on time will not only result in late filing fines, but will also reduce your chances of obtaining a loan or visa. Look out for the last date to file your ITR.

Income Tax Returns: Who Should File Them?

Individuals or corporations who earn a certain amount are required to pay income tax. Listed below are the entities or businesses required to file IT Returns in India:

  • Persons under the age of 59 with an annual income exceeding $2.5 lakh. Senior citizens (age 60-79) can now claim up to 3 lakh, and super senior citizens (age 80+) can claim up to 5 lakh.
  • To compute income, it is important to take into account all deductions and exemptions under Sections 80C to 80U.
  • Regardless of whether the business generated profits or losses during the fiscal year, all registered businesses generate income
  • Those who wish to receive a refund for excess taxes deducted/income taxes paid
  • Outside-Indian individuals with assets or financial interests
  • An NRI who earns or accrues more than Rs 2.5 lakh in India in a fiscal year.

How To File An ITR: Guided Steps

Step 1: Determine your tax liability and income

Follow the steps below to learn how to file an IT return.

  • Income will be computed according to the rules of the tax legislation that applies to the taxpayer
  • Among other things, the estimate should take into account all types of income, including salary, freelancing, and interest. Among other things, taxpayers can claim deductions for tax-saving investments made under Section 80C.
  • TDS, TCS, or any advance tax paid to the government should also be considered by a taxpayer.

Step 2: Certificates of Tax Deducted at Source (TDS) and Form 26AS

Using the TDS certificates they received for each quarter of the financial year, the taxpayer should calculate their TDS amount. The form 26AS summarizes the TDS and tax paid by the taxpayer during the financial year.

Step 3: Choose the right form for filing your income taxes

An income tax return must be filed using the appropriate income tax form. Taxpayers can file their income tax returns with the IT after determining their income tax form. Both online and offline options are available for submitting paperwork.

The online mode should be considered in light of the following:

  • Only ITR 1 and ITR 4 forms are supported
  • Individual taxpayers in other categories are not eligible for it
  • Using the taxpayer’s login, the online mode can be accessed.

For all types of income tax forms, the offline version (which involves producing XML and uploading it) is available.

Step 4: Download the ITR programme from IT’s website (Income Tax Portal)

Download IT Programme from IT’s website by following the steps below

  • For access to the necessary documents, go to www.incometax.gov.in and select ‘Downloads’.
  • Here is the home page of the income tax portal
  • Download either Microsoft Excel or Java, or if you prefer, a JSON utility, depending on the assessment year.

Step 5: Fill in the information requested in the downloaded file

You can check your Income Tax Return Last Date and the amount of tax payable or refund recoverable after downloading the offline utility, if applicable. Using the form that can be downloaded, you can enter the details of the income tax challan

Step 6: Check your entries

You can use the buttons on the right-hand side of the downloaded form once the Income Tax Return Last Date has been filled out. Click the ‘Validate’ button to ensure that all essential information has been entered.

Step 7: XML file conversion

Upon successfully validating the file, click the ‘Generate XML’ button on the right-hand side to convert it into an XML format.

Step 8: Use the Income Tax Portal to upload the XML file

Upload the XML file to the Income Tax Portal by following the steps below.

  • Log onto the e-filing ITR portal and click e-File on the left-hand side to select Income Tax Return from the drop-down menu.
  • Be sure to include all relevant information, such as your PAN, assessment year, and ITR form number. Choose Upload XML from the drop-down menu corresponding to the Submission Mode field before proceeding
  • To complete the process, attach the XML file from your computer and click on Submit.
  • Select a verification method, such as the Aadhaar OTP or the EVC, or mail a manually signed copy of the ITR-V to the Bengaluru Central Processing Center (CPC).

 

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