How to file Income Tax Return?

The Income Tax Act specifies that every taxpayer has to file a return regarding the payment of his/her taxes with the IT department.

• An individual has to file a return by the 31st of July for a financial year ended 31st March.
• In case the individual is engaged in a business or profession and his books of accounts are subjected to audit, the last date of filing return is 31st October.
• Documents supporting any claims for deductions and relief have to be submitted along with the return.
• The individual has to ensure that he/she has paid the applicable tax before filing of the return.
• In case the return is not filed within the prescribed time limit, a simple interest of 1.25% is levied on the tax due.
• In case of salaried individuals, the return to be filed is ITR 1 and it constitutes the following important details:
  • Personal information: This section contains all the personal information of the taxpayer such as name, address, gender, date of birth, PAN, etc.
  • Filing status: This section contains relevant information about the return such as whether it is an original or revised return, the individual is a resident or a non-resident, etc.
  • Income & deductions: This section contains details of income from sources such as salary, family pension, interest on investments, etc. It also specifies the deductions claimed under various sections like 80C, 80E, 80G, etc. and the total taxable income.
  • Tax computation: This section contains information on the tax payable, including the surcharge and cess and any rebates allowed.
  • Taxes paid: This contains details about the taxes paid in the form of advance tax, TDS, self-assessment tax and also the balance tax payable. Advance tax is payable in stages by every individual whose tax liability exceeds Rs. 5,000. TDS is the tax deducted at source from salary and interest income. Self-assessment tax is the balance tax paid by the individual to meet his/her tax liability before filing of the return.

The Income Tax Department also allows online filing of tax return. The following is the process to be followed in case of online filing:

• Register on the portal of the Income Tax Department
• Download the relevant form
• Create an e-return file
• Upload the file to the Income Tax server
• Print the acknowledgement and physically submit the return to the nearest designated post office in case you haven’t signed it digitally.