Income tax return file: Step by step procedure you must know
It is high time that you must now how to file income tax return (ITR). Persons having salary as the source of income must declare their source of income. Though the Centre has extended deadline for filing of ITR till August 31, salaried individuals should know what are the documents required for the process. Instead of seeking help from chartered accountant or financial planner, it is advisable to know the process and do the ITR on your own.
First of all, you must collect your Permanent Account Number (PAN) card and Aadhaar card. This apart, you would require Form 16, Form 16A, details of dividends, long-term and short-term capital gains statements. You will also need interest statement of your bank account and any other income-related documents. TDS certificate and 26AS will be required to check details of taxes paid earlier. While filing the tax return, you must keep ready your bank IFSC code. Inc ase you have paid insurance premiums, home and education loans, the related documents should be kept ready before filing the tax returns.
You have to pick the right tax return forms as the I-T department provides seven ITR forms. Based on your income the form varies.
ITR-1 is meant for individuals who have income from salary or one house or other sources such as lottery and horse race. To file the ITR-1, the income should not exceed Rs 50 lakh.
For individuals having income from a business, capital gains income, income from more than one house property, and other incomes are required to file ITR-2.
Similarly individual businessmen and professionals are needed to file ITR-3. If someone is filing ITR under Presumptive Taxation Scheme, he/she can use the ITR-4 form.
In the next step, visit the income tax department website: www.incometaxefiling.gov.in and start filing your returns. After getting a pre-filled form with details of taxes paid and income in the financial year, read the details of the form and cross check for any errors. Make the changes if there is a mismatch. Following this, submit the form and e-verify it.