Step-by-Step Of Procedure Income Tax Return Filing

1. Collect Required Documents:

   Before you start, gather all the necessary documents to ensure that your tax filing is accurate and complete.

   • PAN (Permanent Account Number): Unique identification number.
   • Aadhaar card (India).
   • Form 16: Provided by your employer, it shows salary, TDS (Tax Deducted at Source), and other details.
   • Form 26AS: A statement of taxes deducted at source, advance tax, and self-assessment tax.
   • Bank statements: To show interest earned or other income.
   • Proof of deductions: Investments under Section 80C (e.g., PPF, insurance), medical insurance premiums (80D), donations (80G), etc.
   • Capital Gains Details: Check whether any property transaction or sale of shares, mutual funds or any other secutie done during the year and if so documentary proof required to be obtained.
   • Home Loan Interest Certificate: For claiming home loan interest deductions.
   • Other Income Details: Rental income, freelance income, business income, etc.
2. Choose the Correct ITR Form:

   Select the appropriate ITR form based on your income sources and taxpayer type.

   • ITR-1 (Sahaj): For individuals with salary, pension, and income from a single house property.
   • ITR-2: For individuals with income from multiple sources (other than business or profession).
   • ITR-3: For individuals or HUFs with business or professional income.
   • ITR-4 (Sugam): For small business owners and professionals opting for the presumptive taxation scheme.
3. Register or Log in to the Tax Portal:

   Most countries have an online tax filing portal where you need to register and log in with credentials.

   • India: Income Tax E-filing Portal
4. Fill in Personal Information:

   Enter your personal details such as:

   • Name, PAN, Aadhaar number (if applicable).
   • Contact details: Email address, mobile number, and bank account details (for refunds).
5. Provide Income Details:

   Input all sources of income, including:

   • Salary: From Form 16, mentioning gross salary, deductions (like HRA, professional tax, etc.), and tax paid.
   • Interest Income: From savings or fixed deposits, etc.
   • Rental Income: If you own property and earn rent.
   • Capital Gains: From the sale of shares, property, or mutual funds.
   • Other Sources: Freelance, business, or other income.
6. Claim Deductions:

   Claim eligible deductions under different sections.

   • Section 80C: Investments in PPF, life insurance, EPF, tax-saving fixed deposits, etc.
   • Section 80D: Premiums paid for health insurance.
   • Section 80G: Donations to charitable organizations.
   • Section 24(b): Deductions on home loan interest.
7. Calculate Taxable Income:

   The system calculates your taxable income based on your entries and applicable tax slabs.

8. Check for TDS and Advance Tax Payments:

   Ensure that TDS deducted by your employer or other sources matches Form 26AS.

   • TDS: Verify if the deducted tax aligns with Form 26AS.
   • Advance Tax Payments: If you have paid advance tax, include it in your return.
   • If excess tax has been paid via TDS or advance payments, you may be eligible for a refund.
9. Verify the Tax Calculation:

   Ensure that tax computation is correct, checking:

   • Tax payable or refund due.
   • Eligibility for rebates like Section 87A (India).
10. Submit the ITR Form:

    Once satisfied with all details, submit the ITR form.

    • Electronically: Submit online through the e-filing portal for faster processing.
    • Physical Submission: In rare cases, submit a paper return manually.
11. E-Verify the ITR:

    After filing, verify your ITR electronically or manually.

    • Electronic Verification: Via Aadhaar OTP, net banking, or Digital Signature.
    • Manual Verification: Send the signed ITR-V form to the tax department’s office if electronic verification isn’t possible.
12. Acknowledgment and Confirmation:

    Once successfully filed and verified, you will receive an acknowledgment receipt (ITR-V).

13. Track Refund Status (if applicable):

    Monitor your refund status through the tax portal or your bank.

14. Keep a Copy of the Filed Return:

    Acknowledgment should be saved for future references, which will be required for loan processing, visa applications etc.