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Thursday, April 25, 2024

Guide to File Income Tax Return

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Income Tax Return

Filing income tax is a necessary process for each Individual. An income tax return is a document that a person uses to record his or her earnings, expenditures, deductions, investments, and liabilities, among other things. The Income Tax Act of 1961 makes it essential for a person to submit an income tax return under a variety of situations.

Guide to File Income Tax Return

An income tax return is a document used to disclose a taxpayer’s earning. Even when there is no income, an income tax return file for an individual hold a multitude of reasons. A taxpayer may need to submit an income tax return to declare his earnings for the year, carry over deficits, claim an income tax refund, or claim tax exemptions, among other things.

Income tax return guidelines dictates that Income tax return can be filed in through any of the two modes: Offline or Online

Before filing Income Tax return, individuals must calculate the Income and tax payable as per the provision of Income tax law pertaining the current financial year. They may take into all income sources such as salary, freelancing and interest. They may claim for exemptions against investments under various sections.

Individuals must also procure necessary documents related to the declarations and exemptions, such as Form 16, Form 26AS, TDS certificates etc.

Offline Mode

Step 1 – For offline mode, Income tax e filing in India requires an individual to download the necessary ITR utility from the registered portal. The file is available in Excel or Java utility from where you can generate and upload the XML file.

Step 2 – Individuals must now fill in relevant information in the XML file, the form comes with preset calculations so that when you enter you income, taxes or exemptions the tax payable is automatically calculated. Validate the details thus entered by clicking onto the “Validate” tab.

Step 3 – After validation you must now generate the XML format of the said file and upload this XML file on the registered portal.

Step 4 – Choose from different verification methods available in the portal such as Aadhaar OTO, EVC Code or by submitting a duly signed file of ITR V to CPC, Bengaluru.

Online Mode

Individuals can also file income tax return completely in online mode and submit the same or like in offline mode may choose to send it via post. They can login to the income tax – e portal click on e-file and then the Income Tax Return link. For a registered user the relevant details are already auto populated, all they need to do is fill in the mandatory information for online ITR. 

The individuals may e-Verify the details thus entered or may even send a hardcopy of the ITR to CPC, Bengaluru within 120 days from the file of income tax return.

Additionally, in the online mode you must regularly click the save button so as to avoid data loss in case of a bad connection or power outage. A taxpaying individual may file ITR 1 and ITR 4 online.

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