Last updated on August 9th, 2020 at 03:35 pm
In the financial year of 2019, more than 50 lakh individuals had filed their income tax returns. The strong figures indicate that the process to file income tax is not as cumbersome as individuals think it to be.
Steps to File Income Tax
However, to ensure the process is completed correctly, first-time taxpayers must make it a point to learn the steps involved to file income tax return online.
For instance, these steps have to be followed for e-filling income tax –
Steps 1 – Visit Income tax’s official website online.
Step 2 – Log in to the account.
Step 3 – Click on the suitable IT form and assessment year.
Step 4 – Fill the form, once directed to the application page.
Step 5 – Provide accurate personal details, including PAN, name, salary, deductions, etc.
Step 6 – Recheck the details offered and proceed to click on ‘Preview and Submit’.
Step 7 – Verify the income tax returns either with the help of an electronic verification code or Aadhaar number.
Individuals would be notified about the status of filing of income tax returns either via email or through SMS. Regardless, it must be noted that the income tax statement serves as a vital document in completing several official and official transactions.
Therefore, taxpayers should make it a point to learn everything one should know about ITR filling. To elaborate, they should figure out the required documents and the overall steps involved.
Required Documents to File Income Tax
Here’s a list of documents that would come in handy while filing income tax returns –
- PAN card.
- Aadhaar card.
- Form 16.
- Bank account details.
- Details relating to sources of income and investment.
It must be noted that taxpayers should use an accurate form to file their tax returns. In the event they complete the process with an inaccurate form their earnings would be termed as ‘defective income’.
Filing the returns would help taxpayers maintain an accurate income record and complete several financial processes successfully. Further, the statement generated would help them avail credit facilities like home loan from leading institutions like Bajaj Housing Finance Limited easily.
Since such HFCs deem Form 16 as a vital document to process the loan, individuals who would submit its accurate version would be more eligible.
The company also provides pre-approved offers on several financial products to make the application process hassle-free and uncomplicated. You can check your pre-approved offer by providing your details like your name and contact number.
What to do Before Filing Income Tax Returns?
To streamline the process of filling one’s income tax return individuals should be aware of the overall process that goes into completing it.
To begin with, they should –
- Gather all the required documents, including certification of TDS and capital gain.
- Check to Form 26A S.
- Look for errors in Form 26A S and eliminate them accordingly.
- Calculate the total income generated in a financial year.
- Assess the tax liability for the financial year.
- Calculate the total tax they are required to pay.
- File for returns once taxes are paid as per income tax slabs.
- Go through ITR verification.
- Generate an e-verification acknowledgement.
- Wait for the IT department to process the returns.
Having a fair idea of this entire process would help file returns correctly. Additionally, it will help minimize the scope of making an error while filing the same. While streamlining the process, individuals would further be able to analyse which tax benefits apply to them.
For instance, possessing a fair idea of the applicable benefits and how to claim them would help them save money successfully. The same is also applicable for joint home loan borrowers. Further, it would help them focus their attention on how to avail home loan tax benefits on under-construction property or finished property.
Therefore, to claim tax benefits and maintain a fair record of income, it is mandatory to file one’s income tax returns. To further ensure the process is smooth and completed accurately, individuals must make it a point to learn about the steps involved and the documents required.