When it comes to filing your own Income Tax Return (ITR), it can all feel very daunting for a beginner. Many people get anxious about it and hence, procrastinate filing their ITRs. However, you must be financially independent and well-informed, as an adult, and filing your ITR is a critical part of life.
But if the prospect of filing your ITR is filling you with dread, fret not, because filing your taxes need not feel like rocket science. Sai Bhosale, a chartered accountant and financial advisor, has simplified the process, step by step. All you need to do is follow these guidelines and you will be equipped to file your taxes every year.
Things you should keep ready before you start
You should keep these things handy, before starting to file your taxes: Form 16, bank statements of the financial year and your bank account details, Pan Card, and Aadhar card.
Refer to the guidelines below, as listed by Bhosale to proceed further.
Steps of Filing ITRs for beginners
If you are filing your Income Tax Return for the first time, you need to register yourself on the Income Tax E-filing Website in the following manner: -
1. Go to the Income Tax e-filing website and click on the ‘Register Yourself’.
2. Click on ‘Taxpayer’ and then enter the details of your PAN and click on ‘validate’. It will ask you to confirm if you want to register as an "Individual taxpayer". Once you do so, click on ‘Continue’.
3. Provide details such as your address, last name, middle name and first name, date of birth, gender (male/female/transgender) and residential status (resident/ non-resident) and continue.
4. Provide primary mobile no and primary email id and select who it belongs to from the drop down (sister/ brother/ friend/ self/ son/ relative/ spouse/ parent/ daughter). Also, provide landline number (non-mandatory) and address details including country, flat/ door/ building, road/ street/ block/ sector (non-mandatory), pin code, post office, area/ locality, town/city/district and state. Continue once all of the above details are filled.
5. You will need to enter the One Time Password (OTP) sent in a text message (SMS) to your primary mobile number and primary email id.
6. Please review if the information displayed is correct and modify your details if needed. If you modify, email id and mobile verification need to be done again to validate the change.
7. The next step is to set a password, confirm password and set your personalised message. The password should fulfil the following criteria:
· Use 8 to 14 characters.
· Use uppercase and lowercase letters
· Use a number
· Use a special character (eg @#%*)
· The personalised message is proof of the fact that the website where you are entering your user id and password is a genuine e- filing website and not a phishing website.
8. Once the registration is complete, your transaction id will be displayed, and you will get a confirmation email and SMS.
9. Now you can proceed to log in.
File your Income Tax Return in the following manner:
1. Login using your password and then click on ‘Continue.’
2. Click on the tab ‘e-file’ and then click on ‘File Income Tax Return’ under the Income Tax Returns Tab.
3. Select the Assessment year for which you wish to file your income tax returns and Select the mode of filing (online – recommended / offline) and ‘Continue’.
4. Click on Start New Filing.
5. You will be asked to select the status that applies to you. To proceed further choose ‘Individual’ and continue.
6. You need to Choose the income tax returns (ITR) form you wish to file and click Proceed.
7. Once you click on Let’s Get Started, you will ask yourself the reason for filing your returns. The following options will be given to you:
a) Taxable income is more than basic exemption
b) Filing Return of Income due to fulfilling any one or more below mentioned conditions as per Seventh Proviso to Section 139(1)
· Deposited amount or aggregate of amounts exceeding ₹ one crore in one or more current accounts during the previous year;
· Incurred expenditure of an amount or aggregate of an amount exceeding ₹ two lakhs for travel to a foreign country for yourself or any other person;
· Deposited amount or aggregate of amounts exceeding ₹ one crore in one or more current accounts during the previous year
8. The next step is to fill the General Schedule and continue to select if you are opting for the new tax regime u/s 115BAC. If you select the New Tax Regime, you will be prompted to furnish the date of filing Form 10IE along with the acknowledgement number.
9. Based on your selection, you will be asked to answer a few questions which will help you to fill the schedules. Click on 'Continue' to proceed for questions or click on Skip to directly start filling in the data in the Schedules
10. Once schedules are filled, add all bank account details like Bank No, Account Type, Bank Name and Branch and Pre-validate it.
11. You will then be directed to a new page which will contain a lot of information filled in. Confirm the summary of your returns if correct and validate it.
12. Either E- Verify your returns or send a hard copy to the Income Tax Department, CPC Bengaluru within 120 days from the date of filing.
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