People often feel overwhelmed by income tax discussions and are generally confused about whether they know everything. Every year they look for experienced CAs or consultants who can assist them in ITR filing. But do you know it is simple and easy, and you can do it yourself?
Since the income tax department introduced the online provision of filing ITRs, it has become very convenient. This article lets you look at how you can easily file your ITR.
What is ITR?
Every individual must fill out an income tax return or ITR form to report their annual income to the IT department. The ITR form also has details regarding expenses, deductions, taxes, investments, etc., that happened for the taxpayer within that financial year. Even if the individual has zero income, they still fill out an income tax return for various reasons. These could be for taking loans, claiming refunds, etc. Let’s look at the steps involved in e-filing your ITR.
1. Calculations
The first step towards ITR filing is calculating your taxes and income. In your calculations, you should include income from every source, such as salary, business, interest, freelancing, etc. Additionally, you can claim tax deductions as per different sections. Also, remember to include TCS, TDS or any advance tax paid by you while doing the calculations.
2. TDS Certificate and Form 26AS
Tax deducted at source is a certificate showing the tax deducted for the individual in the entire year. Through this certificate, you will have the exact amount of tax deducted, and similarly, Form 26AS will help you with the summary of the tax paid in the entire year.
3. Choosing the Form
This step is vital since choosing an incorrect form can lead you to go through the complete ITR tax filing process from the start. There are seven different forms, but if you are online filing, you can choose from only ITR 1 and ITR 4. At the same time, the other forms must be generated through XML and then uploaded offline.
4. Downloading the ITR Utility Form
After doing the calculations and selecting the form, you must log in to the income tax department website. Select the downloads option on the homepage. You must select the assessment year and download the offline utility software. You can choose between JSON, Microsoft Java or Excel based on your preference.
5. Enter the Details
After downloading the form, you must enter the details mentioned in the form. These details will be about your income, and in the form, you must check the tax you need to pay or will get a refund based on your calculations. You can also fill in the income tax challan details in this form.
6. Validating the Information
Once you enter all the mentioned information, you must validate it to ensure everything is correct. On the downloaded utility form, you will see the Validate button. Click on the same and validate your entered information.
7. Converting the File
Once the information you entered is validated, you must convert your offline utility form into XML format. You can select the Generate XML button to convert your file. It is the only format accepted on the income tax department portal.
8. Uploading the File
Follow the below steps to upload your file on the income tax portal.
- Open the income tax e-filing portal.
- Select the e-file tab on the home page.
- From the drop-down, select the income tax return option.
- Enter the required information like assessment year, PAN card, submission mode, and ITR form number.
- Select the upload XML option in the submission mode.
- Choose and attach your file saved on your system and submit.
- Select the verification mode – EVC, Aadhaar OTP, or mailing a signed copy to CPC, Bengaluru.
Final Thoughts
E-filing your income tax return is not difficult these days and can be easily done online. You need to just simply follow the steps and carefully enter all the required details. Once done, you can upload your file on the portal and even validate it while sitting in the comfort of your home. If you still need clarification, contact an online tax consultant who can help you with the process.
