How to File ITR: Complete, reliable and accurate guidelines
What is ITR (Income Tax Return)?
ITR stands for Income Tax Return. It is a form used by Indian taxpayers to declare their income and calculate the tax liability. It is important to file the ITR accurately and on time in order to avoid penalties and other legal issues. The ITR is also used to claim tax refunds and to avail certain tax benefits.
Filing Income Tax Returns (ITR) is an important part of the Indian tax system, and is a mandatory process for individuals with taxable income. If you are one of them, then it is important to understand the process of filing ITR and take necessary steps to complete it accurately.
Guidelines to file ITR
Here is a simple guide on how to file your ITR:
1. Gather the necessary documents:
Before you start the process, you will need to gather all the relevant documents like Form 16, investment proofs, bank statement, etc.
2. Choose the correct ITR form:
Once you have all the necessary documents, you will need to choose the correct ITR form. The different ITR forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7. This will depend on the type of income you have, so make sure to choose the correct one.
ITR 1 is a form used for filing an Income Tax Return in India. It is used by individuals and Hindu Undivided Families (HUFs) who have an annual income of up to Rs. 50 lakhs and do not have any income from profits and gains of business or profession. This form can be filed both manually and electronically. The form can be filled in either English or Hindi. It requires details such as name, address, Permanent Account Number (PAN), details of income from salary, house property, capital gains, other sources, and tax deductions.
ITR 2 is the Income Tax Return form for individuals who are not eligible to file ITR 1. It is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from salary, one house property (excluding cases where the loss is brought forward from previous years), other sources (excluding winning from lottery and income from race horses). Individuals who are partners in a partnership firm and filing ITR 2 are not eligible to claim any deduction under Section 80 while computing their total income.
ITR 3 is a form used by individuals who have a total income of up to Rs. 50 lakhs in a financial year and who are carrying out business or profession. It is a self-assessment tax return form and is important for individuals who are liable to pay taxes on their income. The form requires an individual to provide details of their business income and expenses, capital gains, and income from other sources such as rental income, interest income, etc.
It also requires details of any deductions and tax exemptions available to the individual. Once the form is filled and submitted, the individual can use it to calculate their tax liability.
ITR 4, also known as Sugam, is a simplified tax return form for Individuals and HUFs who have opted for the presumptive income scheme under section 44AE, 44BB or 44BBB of the Income Tax Act, 1961. This return form is used to file income tax returns by individuals and HUFs who have an income from a profession or business and have opted to pay taxes under the presumptive income scheme.
This form is most suitable for taxpayers who have a turnover or gross receipts of up to Rs. 2 crore in the financial year. It is a simplified form and does not require detailed information about the income, deductions and investments. It requires the taxpayer to declare all incomes and deductions and then compute the tax payable. It is important to note that only taxpayers who have opted for the presumptive income scheme can use ITR 4.
ITR 5 is the form for individuals and Hindu Undivided Families (HUFs) who are required to file their income tax returns. It is a comprehensive form which requires taxpayers to disclose their income from salary, house property, capital gains, business and profession, etc. and the taxes they have paid on them. It is important to note that ITR 5 cannot be filed by an individual who is required to file ITR 4, ITR 6 or ITR 7. Individuals must ensure that they select the correct form while filing their income tax returns.
ITR 6 is the Income Tax Return form used by certain taxpayers in India to file their income tax returns. It is used by individuals and Hindu Undivided Families (HUFs) who are not claiming any exemptions or deductions under the Income Tax Act, 1961. It is also used by individuals and HUFs who are engaged in a business or profession and filing their returns on a presumptive basis.
The form must be filed online using the income tax website. The taxpayer must provide information pertaining to their income and taxes paid on it. Once the form is completed and submitted, the taxpayer will receive an acknowledgement number which can be used to track the status of their return.
ITR 7 is a form used for filing tax returns for individuals and Hindu Undivided Families (HUFs) who are not carrying out any business or profession under any proprietorship. This form can be used for claiming deductions related to house rent allowance, agricultural income, and tax-saving investments. It can also be used for disclosing income from other sources such as interest from bank deposits, income from capital gains, and income from foreign sources.
A person eligible to file ITR 7 must have the following documents: Permanent Account Number (PAN) Card, Aadhar Card, Bank passbook, Form 16/16A, details of investments made, interest certificates, and other income details.
3. Fill the ITR form:
After selecting the correct form, fill in all the required details like your personal information, income details, deductions, etc.
4. File your ITR:
Once you have filled the form, you can file your ITR either online or offline. You can opt for the e-filing option, which is the easiest and most convenient way to file your ITR.
5. Make the payment:
When filing the ITR online, you will need to make the payment for the taxes you owe. This can be done through net banking or debit/credit cards.
6. Submit the form:
Once the payment is done, you will need to submit the ITR form. This can be done online or offline, depending on the method you have opted for.
7. Receipt of ITR-V:
Once the ITR is filed, you will receive an ITR-V (acknowledgement) on your registered email ID. You need to sign this document and send it to the Income Tax Department.
After the ITR-V is received by the Income Tax Department, you will get a confirmation email regarding the successful filing of your ITR.
With the help of this guide, you can easily file your income tax returns without any hassle. Make sure to keep all the relevant documents and details ready before you start the process, and keep a copy of the form for future reference.
Benefits of filing ITR
Filing ITR allows taxpayers to receive various benefits. It helps to keep track of income and expenses, provides an audit trail, and helps to reduce the risk of tax fraud.
Additionally, it can help to reduce the amount of taxes owed, claim tax deductions and credits, and provide a comprehensive picture of financial health.
Filing ITR can also help to lower the amount of interest paid on taxes, and provide financial protection in the event of an audit.
Furthermore, it can help to identify potential tax savings and investment opportunities that may be beneficial for future financial planning.
Deadlines for ITR filing ITR For Assessment Year 2023-24
The deadline for filing ITR assessment year 2023-24 depends on the type of ITR form you are filing. Generally, the deadline for filing ITRs is July 31st, 2023. However, taxpayers who are required to get their accounts audited have to file their returns by 30th September 2023. Moreover, taxpayers who are required to submit their TDS returns have to file their returns by 31st May 2023.
To file ITR online In India click here
FAQs about ITR
• What is ITR and how do I file it?
• What documents are required for filing ITR?
• What is the process of filing ITR?
Generally, it includes identity proof such as PAN card, Bank account details, Investment proofs, Salary slips, etc. After collecting all the documents, the next step is to fill up the ITR form. For this, you can use the online e-filing system or file manually. Once the form is filled up and submitted, the Income Tax Department will process the ITR and issue you a confirmation.