Here's your ultimate guide to income tax e-filing in India
What's the story
Filing income tax returns in India doesn't have to be a daunting task anymore.
With the advent of online portals, the process has become faster, more efficient, and, even convenient.
Whether you're a first-timer or a seasoned filer, understanding the ins and outs of e-filing not only ensures you stay on the right side of the law but also helps you maximise your savings.
So, let's break down the process step-by-step, and make tax season less stressful.
Tax slab
Understanding your tax slab
Before you start e-filing, you must know your income tax slab
The government divides taxpayers into various slabs according to their yearly income. Each slab is subject to a specific tax rate.
For example, individuals with an annual income of up to ₹250,000 are exempted from taxes.
Identifying your slab will assist you in accurately calculating your taxable income.
Registration
Registering on the Income Tax Portal
Before you can e-file your taxes, you need to register on the official Income Tax Department website.
This requires entering basic details like your PAN (Permanent Account Number), full name, and date of birth.
After registration, you can log in using your PAN as your user ID.
This step is crucial for first-time filers or those who have never used the portal before.
Documentation
Collecting necessary documents
To ensure a hassle-free experience, it is crucial to have all necessary documents on hand before initiating the e-filing process.
Key documents include Form 16 (if you are employed), bank statements, proof of investments under Section 80C (like LIC premiums, PPF contributions), and any other pertinent financial documents that reflect your income or deductions claimed during the financial year.
ITR selection
Choosing the right ITR form
It's important to select the right ITR (Income Tax Return) form because there are many and it depends on the type of income you have.
For example, salaried people usually fill ITR-one or Sahaj if their income is only salary/pension and interest.
Choosing the wrong form can lead to a delay in processing or even a notice from the Income Tax Department.
Submission
Filling and submitting your ITR online
Complete the verification process, then e-file using the portal's pre-filled forms.
Cross-verify details with your documents to prevent inaccuracies.
After completing mandatory fields and confirming correctness, submit your return.
The system will generate an acknowledgment number. E-verify within 120 days via Aadhaar OTP or other available options on the portal.