How to File ITR? A Step-by-Step Guide to the ITR Filing Process

Wondering what is ITR filing? And how to file ITR? Don’t worry, whether you are a newbie or need a refresher, this blog will walk you through the ITR filing process step-by-step guide in simple terms. Filling ITR might sound tough, but with the right guidance, it becomes a much easier process.

What is ITR Filing?

ITR stands for Income Tax Return. It’s a process of reporting your income, deductions, and taxes paid to the government. Basically, it’s like telling the government how much money you earn in a year and how much tax you have to pay on that income. You need to file an ITR annually if your income exceeds the certain limits set by the government. The Income Tax e-filing portal has recently added the ‘Pay Later’ option which allows you to fill out your tax process before making any tax payments. Once you are done with the ITR filing process you can make payment.

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Integrating the ITR (Income Tax Return) filing process with our hihellohr HRMS software can simplify tax compliance for employees. By syncing employee income data, deductions, and other relevant information, the HRMS can generate accurate tax reports, making it easier for employees to file their returns. Additionally, the software can provide reminders and deadlines for filing taxes, reducing the chances of missing important dates. This integration enhances efficiency and ensures compliance with tax regulations, leading to benefiting both employees and the organization.

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How to file ITR?

According to the Income-tax Act, of 1961, it is mandatory for taxpayers to file ITR. You can file the Income Tax Return (ITR) online with the e-filling facility provided by the Income Tax Department. You can log in to the new income tax portal using your PAN credentials and take advantage of a range of features. Taxpayers have to keep certain documents and information readily available for e-filing their Income Tax Return (ITR). Here we have provided a detailed ITR filing online process step-by-step guide to help you do it:

Step 1: Navigate to the Income Tax e-filing website

Visit the official website of Income Tax e-filing.

https://www.incometax.gov.in/iec/foportal/ using this URL.

Step 2: Register or Log in to the ITR website

Step 3: Go to the ‘File Income Tax Return’

Step 4: Enter the Essential Details

Here you will have to enter the following details:

Assessment Year: Enter the financial year following the year in which you earned income. For example, if you earned income in the financial year 2021-2022, the assessment year would be 2022-2023.
ITR Form Number: Choose between ITR 1 and ITR 4, depending on your eligibility and the type of income you have.
Filing Type: You can select either ‘Original Return’ or ‘Revised Return’.
Submission Mode: In this step, you can select Prepare and Submit Online’ to file your return electronically.

Step 5: Select the Mode of Filing

Step 6: Select the Status

Select the status whether you are filing as an individual, Hindu Undivided Family (HUF), or Firm/ LPP.
Individual: An individual is a person who can be of any gender, regardless of whether they are major or minor, covered under the definition of ‘person’ in the Income Tax Act, of 1961.
Hindu Undivided Family (HUF): Under Hindu Law, a family includes all descendants from a common ancestor, along with their wives and unmarried daughters. HUF is taxed separately from its individual members and needs its own PAN.
Firm/LLP: A partnership under the Indian Partnership Act, of 1932, where individuals come together as partners to carry out business collectively. They are referred to as partners individually and as a firm collectively.

Step 7: Select the Appropriate ITR Form

Select the correct ITR form based on your income and personal conditions. For Individuals and HUFs there are two options- ITR 1 and ITR 4. For example:

Step 8: If You Select ITR 1

If you choose ITR 1, fill in the following details:

Step 9: If You Select ITR 4

If you choose ITR 4, you need to provide details about your business or profession, including turnover, profit, and expenses.

Step 10: Summary of Tax Computation

After entering all relevant details, the portal will display a summary of your tax computation, including total income, deductions, and tax liability or refund.

Step 11: Proceed to Validation

Review all the information you’ve entered and ensure its accuracy. Validate the details before submitting your return.

Step 12: Submit the ITR

Once you’re satisfied with the information provided, submit your ITR through the portal. You’ll receive an acknowledgment in your email address after successful submission.

By following these steps, you will be able to file your income tax return easily. Remember to file your return within the specific due date to avoid any penalties.