What documents do I need before I start filing my ITR?

You'll need your PAN card, Aadhaar card, bank account details (account number, IFSC code, account type), Form 16, Form 26AS, investment details for deductions (like PPF, NSC), and information on any other income sources.

Which ITR form should I use, ITR-1 or ITR-4?

ITR-1 is generally for salaried individuals with income from salary, one house property, and other sources (like interest). ITR-4 is typically for individuals with business income opting for presumptive taxation (under Section 44AD, 44ADA, 44AE).

Where can I find Form 26AS?

Form 26AS is a consolidated tax statement available on the Income Tax Department's website, showing taxes deducted from your income.

What happens if I choose the wrong ITR form?

Choosing the wrong ITR form can lead to rejection of your return, so carefully read the instructions and eligibility criteria for each form before making your selection.

Handling ITR Filing: A Visual Step-by-Step Guide with Screenshots

Introduction to ITR Filing

Filing your Income Tax Return (ITR) is a important annual responsibility for all taxpayers in India. While the process has been a lot simplified with online portals, dealing with the different sections and ensuring accuracy can still be challenging. This guide provides a detailed, step-by-step walkthrough of the ITR filing process, complete with screenshots to help you understand each stage. We'll focus on filing ITR-1 or ITR-4, the most common forms for salaried individuals and small business owners opting for presumptive taxation.

Why This Guide?

Many taxpayers find the ITR filing process confusing, leading to errors and potential penalties. This guide aims to demystify the process by:

Providing clear, concise instructions
Using visual aids (screenshots) to illustrate each step
So, Explaining key terms and concepts
Addressing common FAQs

Prerequisites Before You Begin

Before you start filing your ITR, make sure you have the following documents and information readily available:

PAN Card: Your Permanent Account Number (PAN) is essential for identification.
Aadhaar Card: Your Aadhaar number is required for verification.
Bank Account Details: Account number, IFSC code. Also, type of account (savings or current).
Form 16: Issued by your employer, it contains details of your salary and TDS (Tax Deducted at Source).
Form 26AS: This is a consolidated tax statement available on the Income Tax Department's website, showing taxes deducted from your income.
Here's the thing: Investment Details: Documents related to investments like PPF, NSC, insurance policies, etc., to claim deductions under Section 80C.
Here's the thing: Other Income Details: Information on any other income, such as interest from savings accounts, rental income, or capital gains.

Step-by-Step ITR Filing Guide with Screenshots

Step 1: Accessing the Income Tax e-Filing Portal

So, Open your web browser and handle to the official Income Tax e-Filing portal: https://www.incometax.gov.in/

This is the landing page. You'll need to log in to proceed.

Step 2: Logging In to Your Account

Click on the "Login" button located on the top right corner of the page. Enter your PAN (Permanent Account Number) as your User ID, select your assessment year. Also, enter your password.

If you're a first-time user, you'll need to register on the portal using your PAN and other details.

Step 3: Managing to the ITR Filing Section

In fact, After logging in, you'll be redirected to your dashboard. Click on "e-File" and then select "File Income Tax Return."

You see, This will take you to the ITR filing options.

Step 4: Selecting the Assessment Year and Filing Mode

You see, Choose the relevant Assessment Year (e.g., 2024-25 for filing returns for the financial year 2023-24). Select the mode of filing as "Online" and click on "Continue."

You see, Filing online is most of the time recommended for ease and speed.

Step 5: Choosing the Correct ITR Form

Select the appropriate ITR form based on your income sources. For salaried individuals with income from salary, one house property. Also, other sources (like interest), ITR-1 is usually applicable. For individuals with business income opting for presumptive taxation (Section 44AD, 44ADA, 44AE), ITR-4 is most of the time used.

Carefully read the instructions and eligibility criteria for each form before making your selection. Choosing the wrong form can lead to rejection of your return.

Step 6: Filling Out the ITR Form

The ITR form is divided into several sections. You'll need to fill in details related to your personal information, income, deductions. Also, taxes paid. Most of the information will be pre-filled based on your PAN and previously filed returns. Still, you should verify everything carefully.

Here are some key sections to pay attention to:

Personal Information: Verify your name, handle, PAN, Aadhaar number. Also, contact details.
You see, Gross Total Income: Enter your income from salary, house property, business. Also, other sources.
Deductions: Claim eligible deductions under sections like 80C, 80D, 80G, etc. Make sure you have the necessary documents to support your claims.
Taxes Paid: Verify the details of TDS (Tax Deducted at Source) and advance tax payments.

Step 7: Verifying Your Information and Calculating Tax Liability

You see, In fact, After filling out the form, carefully review all the information you've entered. The portal will automatically calculate your tax liability based on the income and deductions you've provided.

If you have any tax due, you'll need to pay it online through the e-payment facility.

Step 8: Paying Taxes (If Applicable)

If your tax liability is greater than the TDS already deducted, you'll need to pay the remaining amount. The portal provides options for online payment through net banking, credit card, or debit card.

Keep a record of the challan details after making the payment.

Step 9: Submitting Your ITR

Here's the thing: Once you've verified your information, calculated your tax liability. Also, paid any outstanding taxes, click on the "Submit" button. A pop-up will appear confirming your submission.

Your ITR will be successfully submitted to the Income Tax Department.

Step 10: Verifying Your ITR

In fact, After submitting your ITR, you need to verify it. Verification can be done in several ways:

Aadhaar OTP: Generate an OTP on your registered mobile number and enter it to verify your return instantly.
So, Net Banking: Verify through your net banking account.
EVC (Electronic Verification Code): Generate an EVC through the portal and use it to verify your return.
Here's the thing: Sending a physical copy of ITR-V: Print the ITR-V form, sign it, and send it to the CPC (Central Processing Centre) in Bangalore. This is the least preferred method.

Verifying your ITR is mandatory. If you don't verify your return within the stipulated time (usually 30 days), it will be considered invalid.

Common Mistakes to Avoid

You see, Incorrect ITR Form: Choosing the wrong ITR form can lead to rejection.
Incorrect Personal Information: Verify your PAN, Aadhaar. Also, bank details carefully.
Missing Deductions: Make sure you claim all eligible deductions to reduce your tax liability.
Here's the thing: Incorrect TDS Details: Cross-check your TDS details with Form 26AS.
Not Verifying Your ITR: Remember to verify your ITR within the stipulated time.

Conclusion

Filing your ITR online is a straightforward process if you follow the steps carefully and have all the necessary information readily available. This guide, with its detailed screenshots, should help you go through the process with ease and avoid common mistakes. Remember to always verify your information and file your return on time to avoid penalties.

Disclaimer

Here's the thing: So, This guide is for informational purposes only and does not constitute professional tax advice. Consult with a qualified tax advisor for personalized guidance.