How to File Income Tax Return in 2022

Friends, if you file an income tax return every year or are thinking of filing it in 2022, then you must read this post of ours till the end. In this, we have explained everything related to filing Income Tax returns and guided you through step by step how you can easily fill it out online.

Filing an income tax return does not mean that you have to pay income tax to the government, it can allow you to claim a refund of the tax which was already deducted from your income that you are not required to pay. Also, it helps in getting loans from the banks easily.

What is ITR (Income Tax Return)?

It is a kind of form that people fill in to give the details of their annual income and taxes levied on it to the Income-tax department of India. The information entered in the ITR must pertain to a particular financial year, i.e., starting from 1st April and ending on 31st March of the following year.

Income Sources for ITR

• - Salary
• - Income from business or any profession
• - Income from rental properties
• - Income from capital gains
• - Other income sources like royalty, interest on deposits, or from any lottery

According to the nature and amount of income and the type of taxpayer, the income tax department of India has prescribed 7 types of Income Tax return forms: ITR-1 (also known as Sahaj), ITR-2, ITR-3, and ITR-4 (also known as Sugam). These are the most commonly used ITR forms.

ITR-1 (Sahaj)

• - Income from salary or pension
• - Income from housing property
• - Income of more than Rs 5000 from agriculture
• - Income from additional sources like investments, deposits, etc.
• - Combining the information income of their spouse or minor children

ITR-2

• - Income from salary or any pension
• - Income earned on capital gains such as selling an asset or property
• - Income from abroad (foreign sources)
• - Income of more than Rs 5000 from agriculture
• - Income from the lottery
• - RNOR or Non-Residents

ITR-3

• - Income earned from housing property
• - Income from business or any profession
• - Income from shares
• - Salary and pension

ITR-4 (Sugam)

• - Income from agriculture less than Rs 5000
• - No income via capital gains or selling assets
• - Income from business
• - Income from single-house property

Documents Required for Filing ITR




Before filing an ITR, ensure you have the following documents ready:




1. PAN Card

This is essential for filing a personal income tax return. Your name on the PAN card must match the one on the ITR. PAN is required for TDS deduction and should be linked to your bank account.

2. Aadhaar Card

As per Section 139AA of the Income Tax Act, Aadhaar card details are mandatory for filing returns. If you don't have an Aadhaar card yet, provide the enrolment ID. Linking Aadhaar helps in verifying your return online through OTP.

3. Form 16

This form contains salary details and TDS deductions by your employer. It is crucial for salaried individuals to file ITR.

4. Form 16A/16B/16C




Form 16A: TDS deducted from payments other than salaries.

Form 16B: TDS deducted from property sale amounts.

Form 16C: TDS deducted on rent payments.

5. Bank Account Details




All active bank accounts must be declared in the ITR, along with account numbers, IFSC codes, and the number of accounts.

6. Form 26AS

This form provides a summary of all taxes paid against your PAN, including TDS deducted by banks and employers.

7. Home Loan Statement

It provides details of principal and interest repayments on a home loan.

8. Tax Saving Instruments

Documents related to tax-saving investments like ELSS, PPF, etc., must be ready for ITR filing.

9. Capital Gains Details

Documents like broker statements and sale deeds of property are required if capital gains were realized.

10. Rental Income

If you are earning rental income, it should be declared, and rent receipts must be collected for tax deductions.

11. Foreign Income

If you earned foreign income, documents must be provided to claim benefits under DTAA (Double Tax Avoidance Agreement).

12. Dividend Income

If you earned dividends, the details should be reflected in your broker or Demat account statements.

Steps to File ITR Online in 2022

Open the income tax department portal (www.incometaxindiaefiling.gov.in) and register yourself using PAN.

Select "File Income Tax Return" and choose the current assessment year.

Choose the "Online" filing option and select "Individual."

Select the appropriate ITR form and proceed.

Fill in your personal and tax information as required.

After entering the details, proceed with payment and verify the form.

Complete e-verification using your Aadhaar or any other document, and submit the form.

Summary

In this post, we discussed ITR, the documents required, the different types of ITR forms, and the steps to file ITR online. We also covered which form is suitable for you based on your income sources.