Master Your Taxes: A Step-by-Step Walkthrough for First-Time ITR Filers in India

Filing your Income Tax Return (ITR) for the first time can be a daunting task, especially if you are not familiar with the process. If you are a salaried individual in India and it's your first time filing, this guide is for you. Follow the steps below to successfully file your Income Tax Return.

?? Step 1: Gather Your Documents

Before you start the process of filing your ITR, make sure you have all the necessary documents at hand. These include:

• Form 16: This is provided by your employer and contains details about your salary and the tax deducted at source (TDS).
• Bank Statements: For details of any other income like interest on savings accounts.
• PAN Card: Your Permanent Account Number is essential for filing your ITR.
• Aadhaar Card: Linking your Aadhaar with your PAN is mandatory for filing ITR.

?? Step 2: Register on the Income Tax e-Filing Portal

Visit the Income Tax e-Filing portal. If you are a new user, click on the 'Register Yourself' button and fill in the required details to create your account.

?? Step 3: Login to Your Account

After you've registered, log in to your account using your User ID (PAN) and password. Post login, navigate to the 'e-File' tab and click on 'Income Tax Return' from the drop-down menu.

?? Step 4: Choose the Appropriate ITR Form

As a salaried individual, you'll likely need to file ITR-1 or ITR-2, depending on the specifics of your income. ITR-1 is for individuals with income up to Rs 50 lakh from salary, one house property, and other sources like interest income. If your income does not fit this category, refer to the descriptions provided for each form and choose the one that suits your situation the best.

?? Step 5: Fill in the Required Details

After selecting the ITR form, choose the assessment year and the submission mode. The form will open with several tabs like 'General Information', 'Income Details', 'Tax Details', etc. Fill in the required information in each tab. The details to be filled would largely come from your Form 16 and bank statements. Shared below is a summary of major sections you might need to fill:

• Choose the Submission Mode

Select the mode of submission. If you're filing the return online, select 'Prepare and Submit Online'.

• Fill in the 'General Information' Tab

Enter your basic details like name, address, and contact information. Also, provide details like your employer category, residential status, etc.

• Fill in the 'Tax Details' Tab

In this tab, fill in the details of the tax that has been deducted at source from your salary income. These details will be available in your Form 16. If you've paid any advance tax or self-assessment tax, provide those details as well.

• Fill in the 'Taxes Paid and Verification' Tab

Here, you'll see the summary of your tax computation. If any tax is payable, you'll need to pay it and enter the details of the payment in this tab. Verify all the details, check the declaration, and then proceed to the next step.

Remember to save your progress regularly so that you don't lose any data. After filling in all the details, you can proceed to the next step of the ITR filing process.

?? Step 6: Check your Annual Information Statement (AIS)

Check AIS to see whether all the reported details in AIS are considered or not. If not, then first, you need to check whether the information in AIS is correct. If the details are correct, then we need to include the same in our income tax return.

• Key Characteristics of AIS

1. AIS comprises updated details such as interest, dividends, transactions of securities and mutual funds, information on foreign remittances, and more.
2. The AIS data is consolidated into a Taxpayer Information Summary (TIS) to simplify the process of filing returns. Ideally, this information will be automatically populated into your return.
3. AIS also provides an online platform for taxpayers to provide feedback and download data.

• To access your AIS, log in to the income tax e-filing portal. Go to ‘Services’ => ’Annual Information Statement (AIS)’ => Click on Proceed

?? Step 7: Verify Tax Deductions

Under the 'Tax Details' tab, you'll see details of your TDS as per the income tax department's records. Compare these details with those in your Form 16 to ensure they match.

?? Step 8: Confirm Your Tax Calculation

Once you've filled in all the details, the system will automatically calculate your tax liability or refund. If you have any tax due, make the payment and fill in the details of the payment in the 'Tax Paid and Verification' tab.

?? Step 9: Verify and Submit Your ITR

After filling in all the details, review the information you've entered to ensure it's accurate. Once you're sure everything is correct, agree to the declaration and submit your ITR.

?? Step 10: E-Verify Your ITR

Upon successful submission, you'll need to e-verify your return within 120 days. You can do this through various methods like net banking, Aadhaar OTP, or by sending a signed copy of ITR-V to CPC, Bengaluru.

Remember, the due date to file your ITR is usually July 31st of the assessment year unless extended by the government. So, make sure you file your return on time to avoid penalties.

For your reference, here are some of the Frequently Asked Questions (FAQ):

?? Q1: Can I file ITR if no tax has been deducted from my salary?

Yes, even if no tax has been deducted from your salary, it's important to file your ITR if your income exceeds the basic exemption limit. Filing your ITR is a good practice as it can serve as a proof of your income when you're applying for a loan or a visa.

?? Q2: Which ITR form should I choose?

As a salaried individual, you'll likely need to file ITR-1 or ITR-2. ITR-1 is for individuals with income up to Rs 50 lakh from salary, one house property, and other sources like interest income. If your income doesn't fit this category, you may need to use ITR-2 or another form. Make sure to read the descriptions provided for each form on the e-Filing portal.

?? Q3: Can I file my ITR after the deadline?

Yes, you can file a belated return till the end of the assessment year. However, there may be a late filing fee, and you won't be able to carry forward certain losses.

?? Q4: How do I know if my ITR is processed?

You can check the status of your ITR by logging in to the Income Tax e-Filing portal. Go to 'My Account' -> 'View e-Filed Returns/Forms'.

?? Q5: What if I made a mistake in my ITR?

If you discover a mistake after filing your ITR, don't worry. You can file a revised return. Just choose 'Revised Return under section 139(5)' while filling out the form and provide the acknowledgment number of the original return.

?? Q6: What happens if I don't e-Verify my return?

If you don't e-Verify your return within 120 days of filing, it will be considered invalid. Make sure to e-Verify your return using one of the methods provided on the e-Filing portal.

?? Q7: I forgot to claim a deduction while filing my ITR. What should I do?

If you've already filed your ITR but forgot to claim a deduction, you can file a revised return and claim the deduction. Please note that the revised return should be filed before the end of the assessment year or before the completion of the assessment, whichever is earlier.

?? Q8: How can I pay tax if I have a balance due?

If the computed tax liability shows a balance due, you can pay it online. Go to the Income Tax e-Filing portal and choose 'e-Pay Tax' from the 'Quick Links' section. Follow the instructions to make the payment. Once the payment is successful, you can enter the details in your ITR form.

?? Q9: What should I do if the TDS deducted as per Form 16 doesn't match the details on the e-Filing portal?

If there's a mismatch between your TDS details as per Form 16 and those on the e-Filing portal, you should bring it to the notice of your employer or the deductor. They can then rectify the mistake in the TDS return filed by them.

?? Q10: I forgot my password for the Income Tax e-Filing portal. What should I do?

If you forget your password, click on the 'Forgot Password' link on the login page of the e-Filing portal. You can then reset your password using one of the several methods provided, like answering your secret question, using your OTP, etc.

?? Q11: What is the difference between AY and FY in income tax?

In the context of income tax, FY stands for Financial Year, which is the year in which you earn the income. AY stands for Assessment Year, which is the year following the FY, in which your income is assessed and taxed. For instance, if you earned income in FY 2022-23, it will be assessed and taxed in AY 2023-24.

?? Q12: What is Form 16?

Form 16 is a certificate issued by an employer, providing details of the salary paid to the employee and the Tax Deducted at Source (TDS). It is an essential document for salaried individuals to file their Income Tax Returns.

?? Q13: Is it necessary to attach documents when e-filing ITR?

No, when you're e-filing your ITR, you don't need to attach any documents. However, it's essential that you keep all the relevant documents handy in case the Income Tax Department requires them for verification in the future.

?? Q14: What happens if I miss the deadline for ITR filing?

If you miss the deadline for filing your ITR, you can still file a belated return. However, you might have to pay a late filing fee. Also, if you have any tax dues, interest will be charged on that amount.

?? Q15: What is a tax refund? How can I check its status?

A tax refund arises when the taxes paid by you are more than your actual tax liability. This could be in the form of TDS, advance tax, or self-assessment tax. You can check the status of your refund by logging into the Income Tax Department's e-Filing portal and clicking on 'Status of Tax Refund'.

?? Q16: What is the penalty for late filing of income tax return?

The penalty for late filing of the ITR is a minimum of Rs 1,000 and can go up to Rs 10,000, depending on the degree of delay and your total income.

?? Q17: Can I file ITR for previous years?

Yes, you can file a belated return for any of the previous two financial years. However, it will be subject to certain conditions and may attract a penalty.

?? Q18: How do I rectify a mistake made in my ITR after it has been filed?

You can file a rectification request if you have made a mistake in your ITR. Log in to the Income Tax e-Filing portal and go to 'e-File' -> 'Rectification'. You can then choose the appropriate assessment year and mention the mistake that you want to rectify.

This article is intended for informational purposes only and should not be considered legal or financial advice. Please consult with a professional tax advisor or accountant for specific tax-related queries or concerns.

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