Paying tax is a civil duty and reflects your financial ethics. Therefore, one must consider it a responsibility to timely fulfil the tax liabilities rather than viewing it as a burden. Taxes help the government fund infrastructure, health programs, pay salaries of government employees, and invest in community development, law enforcement and education. Therefore, anyone whose income exceeds ₹2.5 lakhs must know how to file income tax return online. It is not as difficult as it might sound. The process is quite convenient.
Filing the tax correctly is also necessary. This will ensure you do not end up paying more. Have a look at how to go about it.
Calculate Your Income Tax Using Income Tax Calculator
Taxpayers must calculate the amount as per the income tax law provision which is applicable to them. Use an Indian income tax calculator and include all sources of income like fixed salaries, foreign assets and freelancing. You can search online about how to calculate tax on salary for better understanding.
You can claim deductions under various sections of the IT Act, while filing the form online. Get in touch with your financial advisor to guide you through the process of IT return filing.
Documents Required
The Income Tax Department offers the facility of IT e-filing. Before knowing the steps, it is crucial to get all the papers right. This can also speed up the process. You will require:
- PAN and Aadhaar details.
- Bank account details.
- Form 16
- Month wise salary slip for salaried individuals
- Details of your investments
There are multiple forms available as per the nature of your income. For example, income from salary, business property, capital gain and other significant sources are types of income on which tax is levied according to the income tax slab. So, make sure to pick the right one for income tax return filing.
Steps for Income Tax Filing Online
Make sure you have all the relevant data required to complete income tax filing online. Now have a look at how to go about the process step by step.
Step 1: Go to the official website of income tax e-filing.
Step 2: Log into the portal using your ID, password and Captcha Code.
Step 3: Now select the ‘e-file’ menu and click on the Income Tax Return link.
Step 4: PAN will be auto populated. Now click on Assessment Year, ITR Form Number, Filing Type and then select the submission mode as ‘Prepare and Submit Online’.
Step 5: Click on ‘continue’ and read all the instructions thoroughly.
Step 6: Fill all the mandatory fields of the income tax return filing form.
Step 7: Pick the ‘e-verify’ or ‘e-verify later within 120 days from the date of filing’ option from ‘Taxes Paid’ and ‘Verification Tab’.
Step 8: Click on the ‘preview and submit’ button.
Step 9: The ‘e-verification’ can be done via EVC generated through bank ATM or ‘Generate EVC’ option under ‘My Account’, Aadhaar OTP and pre-validated bank account.
Step 10: Enter the data within 60 seconds.
To reduce your taxable income, consider working with your financial advisor. Learn about multiple tax saving investments to save significant amount.