For first-time taxpayers: How to file I-T returns in India
What's the story
Filing income tax returns (ITR) for the first time can be intimidating for many Indians.
However, with a clear understanding of the process and some preparation, it can be a breeze.
This article provides a step-by-step guide and essential tips to help you file your ITR smoothly.
Whether you're a salaried individual, freelancer, or run a business, these tips will help you file your ITR efficiently.
Step 1
Understand your tax slab
Before you file your ITR, you should understand your tax slab. These slabs depend on your age and income.
India has different slabs for people under 60, senior citizens (60-79), and super seniors (80 and above).
For example, if you earn up to ₹2,50,000, you don't have to pay any tax.
Knowing your slab is key to calculating your taxes correctly.
Step 2
Collect necessary documents
One way to ensure a smooth ITR filing process is to collect all necessary documents in advance.
Key documents include Form 16 (for salaried individuals), bank statements, proof of investments (such as life insurance policies or mutual funds), home loan statements if applicable, and Aadhaar card details.
With these documents at hand, you can save time and minimize errors during filing.
Step 3
Choose the right ITR form
Picking the correct Income Tax Return form is key.
Salaried folks making up to ₹50 lakh a year can use ITR-1. This includes income from one house property or interest.
Freelancers or business owners will require ITR-3 or ITR-4, based on their structure and turnover.
The Income Tax Department's website provides a flowchart to assist in choosing the correct form for different incomes.
Step 4
E-filing: A convenient option
E-filing your ITR on the Income Tax Department's official portal is hassle-free and guarantees fast processing.
New users need to register using their PAN details to initiate e-filing.
The portal offers straightforward instructions, even if you're not tech-savvy.
E-verifying through Aadhaar OTP or net banking accelerates the refund process, if you're due one.
Step 5
Keep track of deadlines
Knowing the ITR filing deadline is important to prevent penalties, which can be between ₹1,000 and ₹10,000 depending on your income and the extent of the delay.
The regular deadline is July 31 for individual taxpayers, unless the government extends it due to exceptional reasons.
Make a note of this date and ensure you complete all the steps well before time.