Irrespective of whether you fall in the tax paying bracket or not, filing your ITR carries a range of benefits. Here are some tips to file your income tax returns in a hassle-free manner.
For individuals who are filing income tax returns for the first time, the process can seem to be very daunting. In recent times, the government has made it way easier to file ITR. With all the necessary documents in place, the ITR filing can be done in less than 30 minutes. The deadline for filing income tax returns is July 31. The failure to do so can result in a penalty of up to Rs 5,000, even after paying all your taxes. It is important to note that irrespective of whether you fall in the tax-paying bracket or not filing your ITR carries a range of benefits.
ITR Filing 2023: Easy Steps To File ITR
Taxpayers will now be able to file their ITR at an ease of one’s home. Here are the quick steps to file an ITR for FY 2023-24:
Step 1: Visit the official website of Income tax e-filing at www.incometax.gov.in.
Step 2: Use your user ID and password to login into your account (If you are a first time payer, then sign up to create login details.)
Step 3: After logging in, click on the e-file menu on the homepage.
Step 4: Click on the direct link of Income Tax Return from the tab.
Step 5: An online ITR form will be displayed on the screen.
Step 6: Enter all the relevant details as asked.
Step 7: After this, go to the ‘Taxes Paid and Verification’ section and choose if you want to e-Verify or not.
Step 8: Preview thoroughly and click on submit.
Income Tax Slabs
It is essential to familiarise yourself with your income bracket, as the income tax slabs are announced annually by the government. Currently, there are two options – the new and old tax regimes.
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Documents Needed For Filing ITR
Before you log in to the Income Tax portal, make sure you have all the necessary documents by your side. Here are some of them.
Form 16: You will receive a Form 16 from your employer by June 15 every year. It is a document proof of your taxable income for that financial year. Form 16 provides particulars about your annual income, taxable and exempted allowances, deductions claimed, and more.
Salary Slips: Keep all your salary slips for the financial year by your side. These slips contain information about your salaries, deductions, and allowances.
Form 26AS: You can download Form 26AS from the official e-filing website, and it automatically updates with every TDS payment to the tax authorities from your income. Form 26AS is a joint statement that provides key information for claiming deductions and calculating your total income. It also includes details of TDS from your income and payments made to you.
Investment Details: Make sure to gather the relevant details of investments in tax-saving instruments such as Provident Funds, National Savings Certificates, or insurance policies. You can claim deductions using these investments under various sections of the IT Act.
Annual Information Statement (AIS): The AIS contains important information such as mutual fund transactions, dividend, interest, securities transactions, and foreign remittances.
Filing ITR For First Time: Which Form To Choose
Taxpayers must be mindful when filing tax returns and they should include income from all sources. In this, choosing the correct form based on the income sources and financial situation is vital for accurate filing.
ITR-1: ITR-1 form is for individuals whose total income earned is not more than Rs 50 lakh. It is best suited for the one earning salaries, showing income from one house property, and other sources such as interest, etc.
ITR-2: ITR -2 must be filled by Hindu Undivided Families (HUFs) and individuals who do not get involved in any business or profession under a proprietorship.
ITR-3: Individuals and HUFs who have income from a proprietary business or profession should file this form.
ITR-4: Taxpayers with presumptive income from business or profession should file this ITR.
Verification Of ITR Details
After successfully filing your ITR, the final step is to verify it. The verification process can be done both online or offline. For online verification, taxpayers can use the Aadhaar One Time Password (OTP) to access and verify their returns. An e-verification mail will be sent by the Income Tax department to confirm the verification process. On the other hand, for the offline method, taxpayers need to send a hard copy of the ITR form to the Centralized Processing Center (CPC) in Bengaluru.
