How To Fill Your ITR?
a stress-free guide for beginners
Welcome to a new week! Let’s start this week with a focused mindset and the determination to make meaningful progress.
But before we start, here’s a dose of positivity for you:
‘Don’t just count the days, make the days count’
Now, let’s get started…
A simple guide for first-timers
Filing your Income Tax Return (ITR) for the first time can seem daunting, but it doesn’t have to be. With the right steps and a little guidance, you can easily navigate the process. Whether you're a freelancer, a salaried employee, or a small business owner, understanding how to file your ITR correctly is essential to keep your finances in check.
Here’s a simple, stress-free guide to help you file your ITR like a pro.
Step 1: Gather all your documents
Before you start, make sure you have all your necessary documents in place:
Form 16: If you’re a salaried employee, this form will detail your salary and the taxes deducted by your employer.
Bank statements: These help verify your interest income and other deposits.
TDS certificates: If any tax is deducted at source (TDS), keep those certificates handy.
Other income proof: This includes any freelance income, rental income, or income from investments.
Investment proofs: If you’ve made investments eligible for deductions under Section 80C (like PPF, ELSS, etc.), have the proofs ready.
Step 2: Choose the correct ITR form
The Income Tax Department offers different ITR forms, depending on your income sources. Here are the most common forms for individuals:
ITR-1 (Sahaj): For individuals earning salary or pension income, interest income, and having income from one house property. This is the simplest form and most commonly used.
ITR-2: For those with income from more than one house property or for people having capital gains or foreign income.
ITR-3: For individuals who are running a business or profession.
ITR-4 (Sugam): For individuals who have opted for the presumptive taxation scheme under Section 44ADA.
Ensure that you pick the form that suits your income profile. If in doubt, you can always consult a tax expert.
Step 3: Register and log in on the Income tax portal
To begin the filing process, you need to register yourself on the Income Tax Portal. Visit the Income Tax e-filing website and click on the ‘Register’ option. You will need your Permanent Account Number (PAN) for this process.
Once registered, log in using your PAN and password, then head to the 'e-file' menu to start your ITR filing.
Step 4: Fill in your ITR form
Now comes the main task: filling out the form. Here’s a breakdown of the fields you’ll need to complete:
Personal information: This includes your name, PAN, date of birth, and contact details. Make sure all your details match the ones on your PAN card.
Income details: Enter your income from salary, business, interest, or any other source. If you’re a salaried employee, you can directly copy the details from Form 16.
Tax paid: Mention any advance tax or TDS already paid during the year. This will ensure that you don’t pay taxes on the same income again.
Deductions: Claim deductions under sections like 80C (investments), 80D (insurance premiums), and 80E (education loans). Ensure you enter the correct amounts as per your investment proof.
Step 5: Verify your details
Double-check all the entries in the form before moving to the next step. The most common mistake first-time filers make is entering incorrect income details or missing out on claiming deductions they are eligible for.
If you’ve received any refunds in previous years or have outstanding taxes, ensure these are accounted for as well.
Step 6: Submit the form
Once you’ve verified everything, you can submit the form online. After submission, you’ll receive an acknowledgement (ITR-V) on your registered email. This is the proof of filing, which you need to save for your records.
Step 7: E-Verify your return
After filing, you must e-verify your ITR to complete the process. This can be done via:
Aadhaar OTP: If your Aadhaar is linked to your PAN, you can opt for this method.
Net Banking: If your bank offers e-filing services, you can use this method.
Other Methods: If you cannot use the above methods, you can send a physical signed copy of the ITR-V to the Income Tax Department at the address mentioned in the form.
Your ITR will be processed only after verification, so don’t skip this step.
Step 8: Track your refund (If applicable)
Once your ITR is processed, the Income Tax Department will either issue a refund or let you know if any additional tax is due. You can track the status of your refund on the Income Tax Portal.
Step 9: Keep your acknowledgement safe
Once everything is done, make sure to keep the acknowledgment of your ITR filing in a safe place for future reference. It may be required if you apply for a loan, file for an income discrepancy, or face an audit.
So, that’s it for today.
See ya 👋
