Introduction:

Filing your Income Tax Return, commonly known as ITR filing, may appear Challenging, but it doesn’t have to be. In this article, we will explore key steps to streamline the ITR filing process. Additionally, we’ve included a comprehensive list of ITRs  to guide you in determining the most appropriate one for your needs.

The following is a list of items that will be helpful while filing your ITR: 

• PAN Card details 

• Contact details

• Form 16

• Form 26AS 

• Bank details

• Basic information about income

• Savings or investment details

Options for ITR Filing :

• ITR can now be conveniently completed online by visiting the government-run income tax website: https://incometaxindiaefiling.gov.in. While filing your returns for free on this platform is an option, it does demand a certain level of proficiency and a high degree of accuracy.

• Explore the free option of using ITR filing software, especially if your income is not derived from multiple sources. This choice is well-suited for a relatively straightforward financial year without diverse income heads, new additions to your income or property, or significant life changes.

• For complex situations, consider hiring an online tax consultant—they charge nominal fees but significantly simplify the tax filing process.

• For those who prefer not to go the online route, you can engage a tax consulting firm or a consultant in person. Simply provide your financial details, including income, savings, and expenses, along with valid documents, and the consultant will handle the rest.

The four methods mentioned above can handle your ITR requirements, but it’s crucial to know a few key points before filing your ITR year.

ITR FORM:

Choose the ITR form that matches your income specifications from the categorized options, and if needed, carefully read the description or seek assistance from online software.

TDS :

TDS information is also available digitally through Form 26AS. Visit the Income Tax website, log into your account, and click on ‘View your Form 26AS’ to retrieve comprehensive details on tax deductions by your employer or business associates. If your income falls below the taxable slab, you can claim the entire TDS as a return.

Assessment Year: 

Selecting the Assessment Year (AY) is the initial step in the filing process, and confusion often arises at this stage. The Assessment Year is when you file the returns, while the Financial Year (FY) is when you earned the income. In India, the FY runs from April 1st to March 31st, spanning two calendar years. Form 16 is prepared for the FY and subsequently filed on the income tax website for the AY

Validity of the Details:

It is important to keep in mind that you are not updating your status  on a social networking site where edits or deletions are possible. You’re dealing with a government website, and even minor details matter. Enter accurate account information, communication address, income, savings, and investment details, as the refund calculation depends on the provided information. The refund process is online, and the amount is deposited directly into your account. Ensure precision, especially with account number and IFSC code, as these details are critical. The communication address is retained for future correspondence from the Income Tax Department, making it crucial to double-check and avoid potential discrepancies before submission.

Tax deductions:

Managing tax payments is a skill. Explore the array of tax deductions provided by various government investment schemes to retain your hard-earned money from taxation. These savings can be utilized under the following sections

• Section 80C: You can claim a deduction of Rs. 1,50,000 on your total income under section 80C, which is applicable to both individuals and Hindu Undivided Families (HUF)
• Section 80CCC:  contributions made by a person towards certain pension funds offered by a life insurance policy
• Section 80CCD: Section 80CCD provides deductions for individual contributions to the National Pension Scheme (NPS) or the Atal Pension Yojana (APY).
• Section 80D: Section 80D of the Income Tax Act covers health insurance premiums paid in a financial year.
• Section 80DD: Section 80 DD provides for tax deduction for families taking care of a disabled family member
• Section 8DDB: Section 80DDB provides for a deduction to Individuals and HUFs for medical expenses incurred for treatment of specified diseases
• Section 80E: Section 80E specifies that interest paid on education loans must be to an approved charitable institution or a recognized financial institution.
• Section 80EE: Section 80EE provides income tax benefits on the interest of a residential house property loan obtained from any financial institution.
• Section 80G : Section 80G of the Indian Income Tax Act permits a tax deduction for contributions to specific relief funds and charitable institutions.
• Section 80GG : Section 80GG of the Income Tax Act offers deductions for house rent based on specific conditions.
• Section 80GGA: Section 80GGA of the Income Tax Act allows deductions for contributions made towards rural development or scientific research.
• Section 80GGC: Under Section 80GGC, taxpayers can claim a deduction for 100% of their donation to a registered electoral trust or political party.
• Section 80QQB: Section 80QQB of the Income Tax Act  deals with provisions related to Royalty
• Section 80RRB: Section 80RRB, introduced to reward exceptional work, enables individuals to claim income tax deductions for payments received as royalty
• Section 80TTA: Section 80TTA of the Income Tax Act permits deductions on savings account deposits.
• Section 80U: Individuals with severe disabilities (80% or more) are eligible for a deduction.

Conclusion: 

It’s not difficult to file an ITR. But, with a little bit of expertise, increased precision, time commitment, and internet assistance, you may achieve it with appropriate savings without going against legal requirements. Be a responsible citizen by consistently submitting your ITR on time