From the year 2013 onwards, filing the Income Tax return has been made mandatory by the Government. All individuals having a taxable salary will now need to file ITR online and then send the duly signed acknowledgement to the Income Tax Department located in Bangalore.
There are two important terms while filing an Income Tax Return, financial year & Assessment year. While financial year is referred to as the year in which the taxable income is earned and Assessment year is referred as the year for which the taxes are being paid.
Listing Down steps to file and Online ITR
- Register with the ITR Website (For first timers)
- Check Tax deposited in form 26AS (Form for the Current Assessment Year) – Check the tax dates and dues deposited by the employer.
- Choose an appropriate ITR form– The ITR Websites lists down various options as per the source of income.
- Download and open the ITR utility– Click on Downloads > Income tax return drop down menu to download the online return preparation utility for the various ITR forms.
- Fill up the ITR Form– the ITR-1 return preparation software consist of five different modules i.e. Personal Information, Income Details, Tax Details, Taxed paid and Verification and last 80G. Each module needs to be filled by you individually.
- Calculate Tax– Taxes Paid and verification module are the most important rows in the ITR Form. They show the balance tax payable or refundable, respectively after the form is fully filled.
- Pay balance taxes and penalties, if any– All the outstanding tax payments can be made online and can be acknowledged by an e-Challan.
- Update ITR Form and recalculate tax– After clearing the balance taxes and penalties enter the Challan code, date of payment, serial number and amount in the Tax Details Module. And recalculate again.
- Submit ITR Form– After filling all the details and when there is no additional tax payable, submit the ITR Form.
- Sign and post ITR-V Form it IT Dept – After the submission, take a print out of ITR-V form and send the duly signed copy to the IT Department by speed post.
So this is everything required to fill up your IT Return. Happy Tax Filing!