Many people find filing their income tax return in India to be a challenging task. However, filing an income tax return (ITR) is a requirement for every taxpayer every year.
Step 1: Gather all the necessary documents
Make sure you have all the necessary documents in hand before you begin filling out your income tax return.
You must have these documents
- PAN (Permanent Account Number) card
- Form 16 (TDS certificate)
- Bank statements
- Investment proof (if any)
- Form 26AS (tax credit statement)
Step 2: Choose the right form
The next step is to select the correct income tax return form based on your sources of income. For example, if you are a salaried person, you must file ITR-1. The ITR-3 or ITR-4 must be filed, however, if you have income from a business or profession.
Step 3: Fill in the basic details
Once you have the necessary documents and selected the appropriate form, fill in the basic details such as your name, PAN, address, and bank account details.
Step 4: Enter your income details
After completing the necessary fields, input your income information. This will contain information about salary income, house property income (if any), and other sources of income (if any) for those who are employed.
Step 5: Claim deductions and exemptions
Fill out the appropriate areas with any investments or costs you've incurred that qualify as tax deductions. For example, investments in ELSS, PPF, and other tax-saving vehicles are eligible for deductions under section 80C. Health insurance payments, interest on student loans, etc. are all eligible deductions.
Step 6: Compute your tax liability
The next step is to determine your tax due after you have input all the information. Using a manual process or an online tax calculator, you can achieve this. Filling out the necessary information will allow you to get a refund if you have paid too much tax.
Step 7: Submit your ITR
Verify all the information after calculating your tax due before submitting your ITR. Your ITR can be submitted electronically through the income tax department's e-filing system or through other middlemen. Most of the time when you don’t have enough money to fill ITR, than you can take personal loan for your emergency situations.
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