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Filing Income Tax Return (ITR) every year becomes a difficult task for many people, especially when they do not have proper knowledge of the process. Mistakes can result in returns being rejected or refunds getting stuck, so it’s important to know the right steps. In this guide, we will tell you in simple language how to file ITR step-by-step.
New Delhi. Filing income tax return is the responsibility of every taxpayer, whether salaried, freelancer or running a business. The government has made it very easy through the online portal, where you can file the return sitting at home in just a few minutes. Filling ITR not only determines your tax liability, but also increases your credibility in loan, visa and other financial processes. It is very important to keep the correct documents ready and file them on time so that problems related to refund do not arise.
Step 1: Prepare Documents
ITR filing starts with collecting the necessary documents. This includes your Form 16, bank statement, investment proof, TDS details, and last year’s ITR. If you are a freelancer or do business, it is important to keep records of your income and expenses. On the basis of these documents, you can choose the right ITR form, so that there is no mistake or mismatch in the future.
Step 2: Choose the correct ITR form
Often people choose the wrong form, due to which their return gets rejected. For salaried individuals, ITR-1 and ITR-2 are generally most appropriate, while for businesses, ITR-3 and ITR-4 are used. As soon as you select the correct form, the portal pre-fills many fields based on your data. After this you have to cross-check your income, deduction and tax details so that all the entries are correct.
Step 3: Submit and verify ITR
After filling the details, the most important step is ITR verification. Without verification, your return is not considered valid. You can do verification through Aadhaar OTP, Net Banking or e-verification code. After submission, the processing of your return starts and if everything is correct, the refund is automatically credited to the bank account. Keep in mind that submit before the last date of filing so that penalty can be avoided.
