How to file income tax return
Filing income tax is a crucial task for every earning individual or entity, whether it is a business or an individual. It is a legal obligation that is essential to be fulfilled within the specified time limit. In this article, we will discuss how to file income tax and the steps that need to be taken for successful filing.
1. Determine your income source
Before filing income tax, it is necessary to determine the source of income. The income could be from salaries, capital gains, interests, rental income, or any other source. The tax rate and the applicable form for filing income tax depend on the source of income.
2. Gather required documents
The next step is to gather all the necessary documents required for filing income tax. These documents may include Form 16, Form 26AS, bank statements, investment proofs, and other relevant documents. Keep all the documents ready and sorted to avoid any last-minute hassles.
3. Choose the right form for filing
Based on the source of income, choose the appropriate form for filing income tax. For instance, if the income is only from salaries, Form ITR-1 (Sahaj) needs to be filed. For individuals with multiple sources of income, Form ITR-2 needs to be filed. It is essential to choose the right form to avoid any penalty for incorrect filing.
4. Calculate your taxable income
After selecting the form, the next step is to calculate the taxable income. The taxable income is the amount of income that is subject to tax after deducting allowable expenses and deductions. The tax rate varies based on the taxable income and the source of income.
5. Fill in the details in the form
Once the taxable income is calculated, the details need to be filled in the selected form. Enter all the relevant details in the form, such as personal details, income details, tax paid, and deductions claimed. Make sure to double-check all the details before submitting the form.
6. Verify the form
After filling in all the details, it is essential to verify the form before submission. The form can be verified in two ways – electronically or physically. Electronic verification can be done through Aadhaar OTP, EVC (Electronic Verification Code), or digital signature. Physical verification needs to be done by sending the signed ITR-V (Income Tax Return Verification) to the Income Tax Department.
7. Submit the form
After verifying the form, the next step is to submit the form. The form can be submitted online through the Income Tax Department website or physically by submitting the signed ITR-V to the Income Tax Department. The last date for submitting the form varies based on the type of form and the source of income.
8. Pay the tax due
After submitting the form, it is essential to pay any tax due. The tax can be paid online through the Income Tax Department website or physically by visiting the authorized banks. It is necessary to pay the tax before the due date to avoid any penalty.
In conclusion, filing income tax is a legal obligation that every earning individual or entity needs to fulfill. It is essential to gather all the necessary documents, choose the right form, calculate the taxable income, fill in the details, verify the form, and submit the form before the due date. Paying the tax due is also essential to avoid any penalty. By following these simple steps, you can file your income tax successfully and comply with the legal requirements.
Author Bio
INDO NOT HA VE FORM 16. BUT I HAVE AN EXCEL REFLECTING MY INCOME AND EXPENDITURE