In the income tax tutorial series, today we will discuss about the steps to file your Income Tax return online.
So we are in the middle of August now. Hope you did already file your income tax return online for free. If not, then you must do it now to avoid paying penalty for the same. You may find the below article useful & file your IT return easily & accurately.
But before that you should also check the different types of income tax one has to pay & all the income tax return FAQs with valid answers for all of them. These will help you in clarifying your tax doubts. Now let’s start & file your income tax return right away.
Steps to File Your Income Tax Return Online
1. Check your Tax Credit
You can check your tax credit online through the Form 26AS. It has all the details of the tax deposited on your behalf. To access the details online, your PAN should be linked with your Net banking account. The details will include your salary, TDS on bank deposits, sale of property, consultancy charges etc. Check if the Form 26AS is reflecting the tax paid by you or not.
2. Rectify the Mismatch in Form 26AS
The tax department will go with whatever is stated in the Form 26AS. So be sure to rectify the mismatch in that form. If required, file a new TDS return. Also check if all the transactions are mentioned in Form 26AS. Suppose You have invested in a fixed deposit which is going to mature this year. So if there is a 10% TDS on interest from that FD, you have to show the full interest in your income tax return.
3. Income from Other Sources including Foreign Asset
You might have other sources of income eg. Fixed Deposit, NSC, Kisan Bikas, Bonds etc., other than your main income source i.e. Salary. Add the interest from all of them including the accounts & assets held outside India. The new ITR 2 Form will ask the details about your foreign bank account opening date, holding status, interest accrued, schedule & fields number under which this income is mentioned.
4. Calculate the Capital Gain
In case you made a profit buy selling any property, gold, mutual fund or stocks. You may not have to pay tax for all of them. You might use some of the income tax e filing website which will calculate the amount of tax you have to pay.
5. Claim the Deduction Amount
Ensure to avail all the tax exemptions & deductions you are eligible of. In case you did not get any exemption or deduction amount because you could not show the required documents to your employer at that time, you can claim for that amount now.
6. Online Tax Filing
Online e filing of income tax return is very convenient option for the tax payers. And also in case your income is more than Rs. 5 lakhs & you have foreign income, then e filing is mandatory. Not only that, if you claim income tax refund, you have to e file your return, though your income is less than Rs. 5 lakhs. With these e filing websites you don’t have to bother about which different types of ITR form you have to consider, they will automatically take the right form & calculate the right tax amount.
7. Finally Verify your Tax Return
After you perform all the above procedures, you have to verify the same. Until last year, if you did not have a digital signature, you have to send a copy of the ITR V to the central processing centre Bengaluru, to verify your Tax return. This year onward, the tax department has started the EVC (Electronic Verification Code) facility to make the process paperless. In case you are not comfortable with the new EVC process, you can still send your ITR V form to CPC within 120 days of filing your IT return.
Also the new income tax return forms have got the deemed to be let out & let out property status columns in them. In case of sale of property, you have to provide the year wise particulars for any un utilized amount.
And remember not get carried away with any type of income tax return scams. Hope you will find the steps to file your Income Tax return online helpful & act wisely. If you want to add any more point which you think is helpful, please feel free to put in the comments below.