Filing an income tax return is a crucial annual task for every taxpayer. It ensures you are compliant with the law and helps you claim any refunds you may be entitled to. Understanding how to file an income tax return can seem challenging, but with a step-by-step approach, it becomes much more manageable. This guide will walk you through the entire process, making it simple and clear. Additionally, if you have a home loan from Bajaj Finance, you can benefit from various deductions that may reduce your taxable income.
Understanding income tax basics for filing returns
Before you start the process of filing your income tax return, it is essential to understand some basic concepts. Income tax is a tax that the government charges on the income earned by individuals and businesses. The amount of tax you pay depends on your income and the tax slabs set by the government.
There are different sources of income, such as salary, business income, capital gains, and other sources like interest from savings accounts. Each source of income may be taxed differently.
When you file your income tax return, you need to declare all your sources of income for the financial year. Based on this declaration, the tax authorities will calculate your tax liability. If you have paid more tax than necessary through TDS (Tax Deducted at Source) or advance tax, you can claim a refund.
Step-by-step process on how to file income tax return online
- Gather your documents: Collect all necessary documents such as Form 16, interest certificates, and investment proofs.
- Register/login: Go to the income tax e-filing portal and register or log in if you already have an account.
- Download form 26AS: This form shows all the taxes deducted and deposited against your PAN.
- Choose the correct ITR form: Select the appropriate ITR form based on your income sources.
- Fill out the form: Enter your details, income, deductions, and taxes paid.
- Verify your data: Check all the information entered to ensure it is correct.
- Submit the form: After verifying, submit the form online.
- E-Verify your return: Complete the e-verification process using Aadhaar OTP, Net Banking, or other methods.
Essential documents required to file income tax return
- Form 16: Issued by your employer, showing your salary details and TDS.
- Form 26AS: This shows the total tax deducted and deposited against your PAN.
- Bank statements: Reflecting interest earned and transactions.
- Investment proofs: For deductions under sections like 80C, 80D, etc.
- Home loan interest certificate: If you have a home loan, this shows the interest paid.
- Rent receipts: If you are claiming HRA (House Rent Allowance).
- Capital gains statements: If you have sold any investments or property.
Different types of ITR forms explained
| ITR Form | Applicability |
| ITR-1 | For individuals having income from salary, one house property, other sources, and total income up to ₹50 lakh. |
| ITR-2 | For individuals and HUFs not having income from business or profession. |
| ITR-3 | For individuals and HUFs having income from a proprietary business or profession. |
| ITR-4 | For individuals, HUFs, and firms opting for presumptive taxation schemes. |
| ITR-5 | For firms, LLPs, AOPs, BOIs, and other entities. |
| ITR-6 | For companies other than those claiming exemption under section 11. |
| ITR-7 | For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D). |
How to register on the income tax e-filing portal
- Step 1: Visit the e-filing portal: Go to the official income tax e-filing website.
- Step 2: Click on ‘Register’: You will find this option on the homepage.
- Step 3: Select user type: Choose your user type (Individual, HUF, etc.).
- Step 4: Enter basic details: Fill in your basic details such as PAN, name, and date of birth.
- Step 5: Provide contact information: Enter your email address and mobile number.
- Step 6: Create password: Choose a secure password for your account.
- Step 7: Complete OTP verification: Verify your contact details using the OTP sent to your email and mobile.
- Step 8: Registration complete: After verification, your registration is complete.
How to choose the correct ITR form when filing income tax return
Choosing the correct ITR form is crucial as it ensures all your income is reported accurately. Here’s a brief guide:
- ITR-1 (Sahaj): Suitable for individuals with income from salary, one house property, and other sources (interest, etc.) with a total income up to ₹50 lakh.
- ITR-2: For individuals and HUFs not having income from business or profession.
- ITR-3: For individuals and HUFs having income from a proprietary business or profession.
- ITR-4 (Sugam): For individuals, HUFs, and firms opting for presumptive income schemes under sections 44AD, 44ADA, and 44AE.
- ITR-5, 6, and 7: For entities like firms, LLPs, companies, trusts, etc.
Choosing the right form helps in accurate reporting and prevents any legal issues.
Common mistakes to avoid when filing income tax return
- Incorrect personal information: Ensure your name, PAN, and contact details are correct.
- Wrong ITR form: Select the correct form based on your income sources.
- Not reporting all income: Report all income, including interest from savings accounts and fixed deposits.
- Missing deductions: Claim all eligible deductions to reduce your taxable income.
- Not verifying the return: Complete the e-verification process to avoid your return being considered invalid.
- Ignoring form 26AS: Cross-check TDS and advance tax payments with Form 26AS to avoid discrepancies.
How to verify your income tax return after filing
- Step1: Login to e-filing portal: Visit the income tax e-filing portal and log in.
- Step 2: Go to ‘My Account’: Click on ‘My Account’ and select ‘e-Verify Return’.
- Step 3: Choose verification method: Select a method for e-verification (Aadhaar OTP, Net Banking, etc.).
- Step 4: Complete verification: Follow the instructions for the chosen method to complete verification.
- Step 5: Acknowledgment: After successful verification, an acknowledgment receipt is generated.
How to track your refund status after filing income tax return
Once you have filed and verified your income tax return, you may want to track your refund status. Here’s how you can do it:
- Login to e-filing portal: Go to the income tax e-filing website and log in.
- Go to ‘My Account’: Click on ‘My Account’ and then on ‘Refund/Demand Status’.
- Check refund status: Here, you can see the status of your refund. It will show whether it has been processed, is pending, or if any further action is required.
Explore Bajaj Housing Finance Home Loan
Bajaj Housing Finance Home Loan offer several advantages that can enhance your financial planning, especially when considering income tax returns. With competitive interest rates, long repayment tenure, and easy application process, Bajaj Housing Finance Home Loan makes managing your home loan easier and more beneficial. Here are some key benefits:
- Flexible repayment options: Enjoy extended repayment durations of up to 32 years, allowing you to select a plan that best fits your financial situation and simplifies the repayment process.
- Competitive interest rates: Begin your homeownership journey with appealing interest rates starting at just 7.99%* p.a., and EMIs as affordable as Rs. 722/lakh*, making homeownership more accessible and economical.
- Customisable loan options: Tailor your home loan to meet your specific needs with variable loan amounts, and repayment terms, giving you greater control over the home-buying process.
- Top-up loan facility: Enhance your financial flexibility with a top-up loan facility, providing access to additional funds of Rs. 1 crore* or higher at competitive interest rates and minimal documentation, making it easier to manage a home loan balance transfer.
So, simplify your taxes while fulfilling your homeownership dreams with Bajaj Housing Finance Home Loan.
