Beginner's Guide to Filing Income Tax in India

It may seem overwhelming when filing your Income Tax Return (ITR) for the first time, but it doesn't have to be. If you're a salaried staff or a self-employed freelancer, learning these basics keeps you from facing penalties and helps you get your refunds.

You will learn the basic steps of filing your ITR in India, such as which documents to have ready, which form to pick, and how to carry out the online procedure.

1. Who Needs to File Income Tax?

Even if your tax won't be due once any deductions are claimed, you are still required to file income tax if you earn more than ₹2.5 lakh each year. It's also useful to keep records of:

• Getting visa approvals

• Applying for loans

• Claiming tax refunds

Giving information about your income is part of your financial identity.

2. Know Your Income Type

Knowing where your income is from allows you to pick the right ITR form. Income is commonly categorized as things like:

• Salary income

• Earnings from house property

• Whether you run a business or work as a freelancer

• Any profit you get from trade stocks or investments in mutual funds is known as capital gain.

• Interest and gifts received as well

If you earn a salary, the proper form for most people is ITR-1 (Sahaj).

3. Keep These Documents Ready

Get all the necessary papers together ahead of time:

• A form called Form 16 should be issued to you by your employer.

• Your PAN and Aadhaar cards

• Bank name and number

• Any TDS certificates that were issued

• Receipts received for rent

• Papers confirming your investments (under Section 80C, 80D and other sections too)

• You can see your tax payments on Form 26AS, available on the tax website.

Having a central spot for all files helps you finish the project more quickly and more accurately.

4. File Your Return on the Income Tax Portal

Make sure to do the following:

1. Visit https://www.incometax.gov.in 

2. Input your PAN, which is your registered user ID, to log in.

3. Click on "File Income Tax Return."

4. Correctly select the form and the year you need, such as ITR-1.

5. Put in your income level, any deductions you get, and the taxes you expect to pay

6. Go over what you've written in the summary.

7. Give your bank account details and then confirm the transaction with Aadhaar OTP or net banking.

The validation of your identity takes place online, so all documents are confirmed that way.

5. Claim Deductions to Save Tax

Don't miss the chance to mention your investments and deductions to your accountant so you pay less tax.

• 80C –It deals with LIC, PPF, ELSS, and tax-saving FDs

• 80E – The amount paid for health insurance is called a premium.

• 80E – Represents the interest you must pay on an educational loan.

• 24(b) – Home loan interest

They can minimize taxes you need to pay or help you receive a higher refund.

6. What Happens After Filing?

As soon as the lawsuit is approved and checked:

• You will get a notice (ITR-V).

• The Income Tax Department will check and handle your return.

• If you are eligible for a refund, it will arrive in your bank account during the next few weeks.

Anytime, check your ITR status on the portal.

Final Remark

Not only is it your duty to pay income tax, but it also helps you stay financially organized and typically allows you to get loans, credit cards, and better products.

Act soon, verify all your information, and submit your return securely; if you have any difficulties, Rupee112 will be here to support you.