How to fill out the ITR?
Every employed and earning person is required to file an annual Income Tax Return (ITR). Through this, they give details of their income and expenses. Those who do not file ITR may receive a notice from the Income Tax Department. So, if you are filing ITR for the first time, you may face some challenges like which ITR form to fill, what is its process, how much tax exemption you will get, etc. If you are also facing a similar dilemma while filing for the first time, then don’t worry, we will give you some simple tips related to this.
Choose the correct form
The Income Tax Department has issued seven types of ITR forms for filing income tax returns for the financial year 2023-24. The choice of form depends on the type, amount and category of income of the taxpayers. Each form is different, so it is important to choose the right ITR form for tax filing.
ITR-1: This form is for those who are salaried persons, own a property and have income up to Rs 50 lakh from other sources (interest etc.). ITR-2: Individuals and HUFs whose income is not from business or profession will choose this form. ITR-3: ITR-3 is filed for individuals and HUFs whose income is from self-employed business or profession. ITR-4: This form is chosen for estimated income from a business or profession.
collect the necessary documents
To file ITR, taxpayers need to have all the necessary documents. The most special of them is Form 16. It is issued by your employer or company and contains details of your salary and the taxes deducted. Apart from this, PAN card is also necessary, without it one cannot file ITR. It is also important to have bank statements to keep track of interest income and other financial transactions. Apart from this, to save taxes, carry investment-related documents such as PPF, NSC, ELSS. Carry TDS certificate as proof of tax deduction on income from other sources of income. Form 26AS is also very important to fill in ITR. This is the annual tax return that shows the tax payments and deductions made by you. This form is available on the Income Tax e-filing portal and can be easily downloaded.
Register on the e-filing portal
Those filing Income Tax returns for the first time need to register on the e-filing portal first. For this go to the official website of the Income Tax Department. Go to the Register option here. After this, select the taxpayer, now fill in your PAN card details and verify. After this, provide your personal information like name, address, gender, etc. Now fill in your registered mobile number and email ID. As part of the further process, an OTP will appear on your mobile number and email, enter it. Now set your password and log in. Register now. You will be informed via message as soon as the registration process is completed.
claim deduction
Many types of exemptions are also available in tax filing under the Income Tax Act. This can help you reduce your taxable income. As per the income tax rules, under Section 80C, there is a provision for deduction of investments up to Rs 1.5 lakh in PPF, EPF, NSC, life insurance, etc. The benefit of deduction for health insurance premium is available under Section 80D. Apart from this, one can avail deduction under Section 80TTA for interest up to ₹ 10,000 on savings accounts. Through Section 24(b), one can get the benefit of deduction of up to Rs 2 lakh on home loan interest.
Provide correct details of all income.
Fill in the correct information about all your sources of income in ITR. This includes salary, interest income, rental income and any self-employment or part-time income etc. The last date to file ITR is July 31, so file it on time. Late filing of the return can lead to a penalty of up to Rs 10,000. After filing the income tax return, keep a record of the ITR receipt filed and all the necessary supporting documents. With this, you will be able to check if there are any errors in the future.
Electronic verification is also necessary
After filing the ITR, its electronic verification is required. Because if the ITR is not verified after filing it, it will be declared invalid. Taxpayers can electronically verify their ITR through EVC i.e. Electronic Verification Code option.
