Vinod Kumar
Filing your income tax return (ITR) is something everyone needs to do to report their yearly earnings and pay taxes. Let’s go through how you can do this in 2024, step by step.
What’s Income Tax Return Filing?
It’s a rule where you tell the government how much money you made in a year and pay taxes accordingly. You need to do this right and on time to avoid fines.
Filing income tax return (ITR) is a legal requirement imposed by the government on individuals and entities to report their annual income and pay taxes accordingly. It is essential for every taxpayer to file their ITR accurately and within the specified deadlines to avoid penalties and legal consequences.
How to Do It?
Get Ready with Documents
You’ll need your PAN card, Aadhaar card, Form 16 (if you’re salaried), bank statements, and proofs of investments.
Online or Offline?
Doing it online is faster and easier. You log in to the government’s tax portal, fill in your details, claim deductions if you have any, and submit. Check out our service on online tax filing for detailed steps.
Understanding Income Tax Deductions and Exemptions
Section 80C Deductions
Section 80C offers deductions on investments such as LIC (Life Insurance Corporation) premiums, PPF contributions, NSC investments, tuition fees, etc., up to a specified limit.
Other Deductions and Exemptions
Taxpayers can claim deductions under various sections such as 80D (health insurance premiums), 80E (education loan interest), 80G (donations), etc., reducing their taxable income.
Calculating Taxable Income and Tax Liability
Income Sources
Taxable income includes earnings from salary, business or profession, capital gains, house property, and other sources as per tax laws.
Deductions and Exemptions
After deducting eligible deductions and exemptions from total income, taxpayers arrive at their taxable income, which is then taxed according to applicable tax slabs.
Know Your Tax Slab
The government has different tax rates based on how much you earn. For example:
- Up to ₹2,50,000: No tax
- ₹2,50,001 to ₹5,00,000: 5% tax
- ₹5,00,001 to ₹10,00,000: 20% tax
- Above ₹10,00,000: 30% tax
Filing Income Tax Return Online Step by Step
Logging into the Income Tax Department Portal
Taxpayers need to log in to the official Income Tax Department‘s e-filing portal using their credentials or register if they are new users.
Selecting the Appropriate ITR Form
Choosing the correct ITR form based on income sources, residential status, and other criteria is crucial for accurate filing.
Filling in Personal Details
Taxpayers must enter personal information such as name, PAN, Aadhaar, contact details, and bank account information correctly.
Entering Income Details
Detailed income details, including salary, business income, rental income, capital gains, and other earnings, should be accurately reported.
Claiming Deductions and Exemptions
Utilizing all eligible deductions and exemptions under relevant sections of the Income Tax Act helps reduce taxable income.
Verifying and Submitting the Return
Before submission, taxpayers must verify the information provided and cross-check documents to ensure accuracy. E-verification can be done using Aadhaar OTP, net banking, or EVC (Electronic Verification Code).
Common Mistakes to Avoid While Filing ITR
Incorrect Information
Providing incorrect or incomplete information in ITR forms can lead to processing delays, rejections, or penalties.
Missing Deadlines
Failing to file ITR within the specified deadlines attracts penalties and may result in legal consequences.
Benefits of Filing Income Tax Return on Time
Avoiding Penalties and Notices
Filing ITR on time helps taxpayers avoid penalties, interest, and legal notices from the Income Tax Department.
Ensuring Compliance with Tax Laws
Timely filing of ITR ensures compliance with tax laws and demonstrates financial transparency and responsibility.
Conclusion
Filing your income tax return isn’t complicated if you have everything ready and follow the steps. It’s about being responsible with your taxes.
FAQs
- When is the deadline for filing taxes in 2024?
- Usually by July 31st, 2024, unless the government extends it.
- Can I file taxes without Form 16?
- Yes, you can use other income documents if you don’t have Form 16.
- Do I have to e-verify my taxes online?
- Yes, it’s necessary after filing online to complete the process.
