How to File Income Tax Returns in India: A Comprehensive Guide

Every Indian citizen who has income that is subject to taxation is required to file income tax returns. It guarantees adherence to the law and aids in the advancement of the country. This article will walk you through the process of filing income tax returns in India if you are new to it or just want a refresher.

Before you begin the filing process, gather the necessary documents, including:

1. PAN (Permanent Account Number) card
2. Aadhaar card
3. Form 16 (provided by your employer)
4. Form 26AS (tax credit statement)
5. Bank statements/passbooks
6. Investment and loan details (if applicable)
7. Receipts of tax-saving investments (such as LIC, PPF, NSC, etc.)

Choosing the right Income Tax Return (ITR) form depending on your income sources and category is the first step in learning how to file income tax returns. ITR 1 (SAHAJ) for salary-earners, ITR 2 for individuals and Hindu Undivided Families (HUFs) with income from a variety of sources, and ITR 3 for people and HUFs with business or professional income are some of the typical forms.

Calculate your total income for the fiscal year by adding all sources of revenue, such as your wage, house or other property, capital gains, business or professional income, and other sources of income, in order to understand how to file income tax returns effectively. Your taxable income will be determined after deducting any appropriate deductions (under Sections 80C to 80U).

The Income Tax Department provides two methods to file income tax returns in India: online and offline.

Online Filing:

Register on the official Income Tax e-Filing website (https://www.incometax.gov.in/iec/foportal/).

1. Select the appropriate ITR form and assessment year.
2. Fill in the required details accurately, including personal information, income details, deductions, and tax payments.
3. Verify the information and submit the form electronically using your digital signature (if available) or generate an Electronic Verification Code (EVC).
4. Keep a copy of the acknowledgement receipt (ITR-V) for further reference.

Offline Filing:

1. Obtain the physical ITR form applicable to your income source.
2. Fill in the details manually, ensuring accuracy and legibility.
3. Submit the completed form at the nearest Income Tax Office or designated Dropbox centres.

Verifying your return to confirm its legitimacy is essential to learning how to file income tax returns properly. The ITR-V can be physically verified by delivering a signed copy to the Centralised Processing Centre (CPC) within 120 days of filing, using the Aadhaar OTP for electronic verification, or by using the EVC obtained on the income tax portal.

After taking into account advance tax and TDS (Tax Deducted at Source) payments, it's crucial to understand how to file income tax returns while paying the remaining tax if you have any unpaid taxes. To deposit the tax amount at approved bank branches or online, use the Challan 280.

Keep a copy of every document, including the filed return, ITR-V, and supporting papers, for at least six years following the conclusion of the applicable assessment year in order to ensure a seamless income tax filing procedure in the future.

When you know how to file income tax returns properly, filing income tax returns in India is a methodical and easy process. You may meet your tax duties and aid in the development of the country by following the above-mentioned measures and making sure that your income and deductions are reported accurately. Utilise the resources offered by the Income Tax Department and stay informed of any changes to tax rules to ensure a simple filing process.