Filing your income tax return can feel overwhelming, especially if you earn money from different places like salary, property, investments, or even lottery wins. With recent updates in the ITR forms, it’s important to know the right steps so you can file your return smoothly and avoid mistakes. Here’s a straightforward guide to help you through the process.
1. Collect All Your Documents
Before you start, gather these documents:
- Salary slips and Form 16 from all employers (if you changed jobs or have more than one employer)
- Rental agreements and receipts for rental income
- Investment proofs (mutual funds, stocks, fixed deposits, etc.)
- Bank statements and interest certificates
- Form 26AS, which shows all taxes deducted and deposited on your behalf
Having these ready will make the process much easier and reduce the chance of errors.
2. Pick the Right ITR Form
Choosing the correct ITR form is crucial. For most people with multiple income sources, ITR 3 or ITR 4 is suitable. ITR 3 is for those with income from business or profession, while ITR 4 is for those choosing the presumptive taxation scheme. If you only have salary income, ITR 1 or ITR 2 may be enough. Using the wrong form can lead to delays or penalties.
3. Calculate Your Total Income
Add up all your income from various sources:
- Salary (from all employers)
- Rental income
- Profits from selling shares or property
- Interest from savings, fixed deposits, or bonds
- Any winnings from lotteries or other sources
Remember to include all income, even if tax was already deducted at source.
4. Check Your Annual Information Statement (AIS)
Your AIS gives a summary of all your financial transactions. Review it carefully to make sure everything matches your records. If you find any mistakes, you can request corrections through the AIS portal.
5. Claim Deductions and Choose the Right Tax Regime
You can reduce your taxable income by claiming deductions for investments, insurance, home loan repayments, donations, and more. The new tax regime offers lower rates but fewer deductions, while the old regime allows more exemptions. Compare both and choose what’s best for you.
6. Fill and Submit Your ITR
Once you’ve calculated your income and claimed deductions, fill out the chosen ITR form carefully. Double-check all details before submitting. You can file your return online through the income tax portal.
7. Verify Your Return
After submitting, don’t forget to verify your return. This is the final step—without verification, your filing isn’t complete. You can verify online using Aadhaar OTP, net banking, or by sending a signed physical copy.
8. Respond to Notices Promptly
If you receive any notice from the Income Tax Department, read it carefully and respond within the deadline. Keep all supporting documents ready in case you need to explain or clarify any details.
