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.
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.
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.
Before filing an ITR, ensure you have the following documents ready:
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.
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.
This form contains salary details and TDS deductions by your employer. It is crucial for salaried individuals to file ITR.
Form 16A: TDS deducted from payments other than salaries.
Form 16B: TDS deducted from property sale amounts.
Form 16C: TDS deducted on rent payments.
All active bank accounts must be declared in the ITR, along with account numbers, IFSC codes, and the number of accounts.
This form provides a summary of all taxes paid against your PAN, including TDS deducted by banks and employers.
It provides details of principal and interest repayments on a home loan.
Documents related to tax-saving investments like ELSS, PPF, etc., must be ready for ITR filing.
Documents like broker statements and sale deeds of property are required if capital gains were realized.
If you are earning rental income, it should be declared, and rent receipts must be collected for tax deductions.
If you earned foreign income, documents must be provided to claim benefits under DTAA (Double Tax Avoidance Agreement).
If you earned dividends, the details should be reflected in your broker or Demat account statements.
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.
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.