Filing an ITR is way Easier these Days!; Let’s Know How?

Filing income tax in India these days is way simpler compared to earlier years due to the reformations implemented by the government to simplify the tax filing processes, and now many people can even file their taxes online.

Here we are telling step-by-step procedures, one should know before filing their taxes.

Step 1: Make a list of all sources of income; for example – salary, interests, capital gains, rental income, or any other countable income.

Step 2: Choose the relevant ITR Form – this means the ITR form that suits a particular individual better based on where their earnings are coming from or in which profession they are like a salaried, business person etc. The government’s IT Portal provides various types of ITR forms and now has an automatic filing strategy, which will enable them to file their tax returns online. Here, the form of tax return is structured in such a way that information recorded at tax agencies is already there. Furthermore, users just have to ensure that all the pre-filled data is correct and complete the remaining sections.

Step 3: Checking off the allowable deductions and exemptions electronically will come in handy for expenses such as insurance premiums, home loan interest, medical bills, retirement savings, and many others that may apply up to the limit allowed.

Step 4: The prospective tax calculation will be automatically computed based on graduated earnings tax bracket rates. Nearly every salaried worker and pensioner belongs to the “no tax due” category because of the deductions and exemptions of their remunerations.

Step 5: The taxpayers must verify their taxable income and the final tax liability or refund amount and provide the required documents, such as electronic signatures and Aadhar-based e-verification, to make the process paperless.

Taxpayers can also talk to authorized e-filing intermediaries and chartered accountants if they face any difficulty with the e-filing process. Tax authorities can use data analytics and computer systems to process returns in a quick way but also to issue refunds directly to bank accounts and find errors or mismatches to follow up on. At large, efficient digital systems have created ease of filing as part of the taxation system for most citizens.