File income tax return can be a hassle especially when you are doing it for the first time. It can be confusing and frightening at the same time.
Along with that, you also carry a sense of accomplishment as now you are a young adult who’s going to take charge of their finances and not your parents.
Your first time doing anything can be a challenge and fearful and taxes are sure to perplex you for the first time as you don’t know what to expect and what you need or if you are going to do it perfectly.
A lot of these kinds of questions might be bewildering your mind but we are here to help you out with this.
Read on to find out how to file an income tax return and finally get how it feels like filing your own taxes!
Filing your taxes means maintaining all the paperwork and managing the income documents and saving them for when the time comes. You must avoid rookie mistakes and take all the advantages of money-saving opportunities because nothing proves your financial freedom and wisdom other than your tax compliance understanding.
Here are some tips you should remember all year long to facilitate your tax filing process.
1. Check your income
Your income determines your tax return so it’s important to check your income and know even if you have to file a tax return or not as you need to file an income tax return only if you meet or exceed a certain amount of income during a year.
Remember to include income from other sources as well such as rental income or investments etc.
2. Manage the documents and paperwork
Saving the important paperwork and documents you receive all year long is a crucial habit you need to incorporate in your adult life. This makes it easier when you are going to file taxes.
Collect all the documents like Form 16/16A, salary slips, interest certificates, etc.
3. Take the deadlines seriously
Mind the deadlines that are recommended and prepare beforehand. Make sure you have enough time to collect and gather all the documents and paperwork. The earlier you film the better.
After you’ve collected all the documents and verified taxes that have been deducted from your income, it’s time to compute your taxable income.
Check and download Form 26AS in your tax passbook and cross-check your TDS certificate with it. Rectify with your deductor if there is an error that does not match with Form 16/16A.
Here’s how you can file your Income Tax Return online without any hassle:
1.Login income tax e-filing website
The first step in filing an income tax return online is to log in to the income tax e filing website. If you already hold an account on the website, use the same credentials and if you do not have an account, create a new account.
You will need a PAN number to create an account.
2. Verify your personal details
After you are done logging in. Click on the Filing income tax returns tab and file the necessary details. You’ll be redirected to the ‘Instructions’ page. Make sure you read it thoroughly.
Once you click on the next tab, ‘Part A General Information, here your personal information will already be filled in. Verify the details and make changes if necessary.
3. Compute your total income and tax
The most important step in this process is the computation of your total income and tax liability. Once you’ve verified your personal details, click on the next tab ‘Computation Of Income And Tax’.
Here, you need to compute your total salary. All the computations will be done automatically once you add the gross total income amount. If you have any deductions to make like insurance policies, loans, house rent or investments etc, you can add them in ‘Part C – Deductions And Taxable Total Income’.
The computed tax will be indicated in the last slot ‘Total Tax, Fee And Interest’. Now, Click ‘Save Draft’.
Note: If you are a salaried person, the taxable amount will be automatically filled. Verify and copy the amount under ‘Col 5’ and paste in ‘Col 6’.
4. Calculate final tax payable
After computing your tax liability, deduct any taxes that have already been paid. This will tell you if you have paid any excess taxes or the refund that is due to you.
You can do this on the next step, ‘Part E – Other Information’.
5. Verification of your ITR
The last step of filing an Income tax return is verification. You can verify your ITR via Adhaar Card, OTP, EVC via Net Banking or Bank Account, Demat Account, Bank ATM or sign ITR-V to the IT Department.
You have 120 days to verify your ITR if you file ITR online.
6. ITR processing
Once you have verified your ITR (Physically or E-Verification), the IT department will process your tax return and ensure that all the details are correct and cross-check the details filled by you with the data available.
Once your data is processed, you will be informed by the IT department on your registered email ID. Mistakes, if any, are to be explained or corrected.
This was all about filing an Income tax return online. Make sure you choose the right ITR form and compute your income and tax liability carefully so that there are fewer chances of any discrepancies.
File your tax by yourself and be a responsible human being!