Income Tax Filing in India: Steps On How To File It
Income tax filing is a legal requirement for individuals and entities earning taxable income in India. Filing returns on time ensures compliance with the Income Tax Act, 1961, helps avoid penalties, enables claiming refunds, and allows carry forward of losses. Even taxpayers with income below the taxable threshold often file returns to maintain a proper financial record.
Income tax returns are filed annually based on the nature and source of income. Salaried individuals, professionals, business owners, and investors must choose the correct ITR form depending on salary income, business income, capital gains, or other sources. Filing an incorrect form may result in defective return notices.
Steps to File Income Tax Return
1. Determine whether you are required to file a return based on income, age, residential status, and specified transactions.
2. Identify the correct ITR form applicable to you, such as ITR-1 for salaried individuals or ITR-3/ITR-4 for business or professional income.
3. Collect all relevant documents including Form 16, salary slips, bank statements, interest certificates, investment proofs, and details of deductions.
4. Calculate total income from all sources and claim eligible deductions under Chapter VI-A, such as deductions for insurance, provident fund, and education loans.
5. Compute tax liability and pay any remaining tax as advance tax or self-assessment tax before filing the return.
6. Log in to the income tax e-filing portal and fill in the return form with accurate income and tax details.
7. Submit the return and verify it electronically through Aadhaar OTP, net banking, or other available verification methods.
FAQs
1. Is income tax filing mandatory if income is below the taxable limit?
No, but filing is advisable for record-keeping and refund claims
2. What happens if I miss the filing deadline?
Late filing may attract fees, interest, and loss of certain benefits.
3. Can I revise my income tax return?
Yes, a return can be revised within the prescribed time limit
4. How long does it take to get a refund?
Refunds are generally processed within a few weeks after verification.
5. Do I need a professional to file my return?
No, individuals can file on their own, though professional help may be useful in complex cases
