Tax Filing: 5 Simple Steps to File Your ITR

If you are an Indian citizen, filing your Income Tax Return (ITR) can be scary if you've never done it before. Complex forms, mathematical calculations, and foreign terminology can easily transform an easy operation into a challenging one. The good news is that the Indian government's e-filing system has greatly simplified the procedure. So, anyone can now file their ITR using a quicker, easier-to-use, and accessible online portal. This article will lead you through each step to guarantee an easy and error-free e-filing process. 

Step 1: Accessing the E-filing Portal 

If you are a new user, you can go to Income Tax Portal. It is the official e-filing portal of the Income Tax Department. After selecting "Register Yourself," enter your full name, date of birth, and Permanent Account Number (PAN). The portal will help you register by guiding you through the procedure and ensuring you correctly enter all the required information.  

Step 2: Choosing the Right ITR Form 

Selecting the appropriate form is essential to guaranteeing correct filing and compliance with tax laws. These are the common types of ITR forms: 

ITR-1 (Sahaj): This is for people who own one property and earn income solely from a salary, pension, or interest. 

ITR-2: For Hindu Undivided Families (HUFs) and for people who are self-employed or have a separate family company, capital gains, or other sources of income.  

ITR-3: For people and HUFs who earn money from their businesses or professions, including those obligated by the Income Tax Act to keep accounts current.  

ITR-4 (Sugam): For individuals, HUFs, and enterprises (apart from LLPs) with income up to Rs. 50 lakh, including salaries, one residential property, earnings from businesses subject to presumed taxes, and other sources.  

Get help from a tax expert to select the appropriate form if confused.  

Step 3: Make use of Pre-filled Data and Enter Income Details 

Pre-filled data is a major benefit of e-filing as it accelerates the procedure and reduces the possibility of errors. The information gathered from sources such as your employer's Form 16, Tax Deducted at Source (TDS) statements, and prior ITR files is pre-filled by the Income Tax Department in specific parts of your ITR form. So, it is essential to carefully check the accuracy of all pre-filled data.  

Step 4: Selecting a Tax Regime Option 

The Indian government allows taxpayers to select the tax regime, resulting in less tax liability. Making an informed choice requires an understanding of the following important differences: 

Old Tax Regime: This has higher tax rates than the new regime but provides a variety of deductions and exclusions under various sections, such as 80C, 80D, and others. 

New Tax Regime: Reduced tax rates with fewer exemptions and deductions are available  

Step 5: Verifying and Submitting Your ITR 

You are now in the last step of filing your ITR. But don't forget to do the below before hitting the "Submit" button: 

Verify all entered information a second time to ensure accuracy and completeness. Make sure no information is missing, or there are contradictions. 

Include any relevant documentation needed for the claimed deductions or specific sources of income. 

Once you're satisfied with everything, submit your ITR. There are two primary ways to confirm your return: 

Aadhaar OTP: You can use the OTP sent to your registered cellphone number to verify whether you have linked your Aadhaar card to your PAN.  

To validate your return, you must submit the EVC (Electronic Verification Code), generated on the e-filing page, within 72 hours. A demat account, net banking, or pre-validated bank account are just a few ways you might generate the EVC.  

Sending a signed ITR-V form: If you don't want to use Aadhaar, you can download the ITR-V form created after submitting your return online. Print, sign, and mail the document to the Central Processing Centre (CPC) to get it verified.  

Final thoughts 

You’ve filed your ITR! After your ITR is successfully submitted and verified, the Income Tax Department will send you a confirmation message. You must keep a copy of the ITR-V receipt and the acknowledgment document for your records as evidence of filing.