Before navigating the File your ITR Process for Individuals, you should know about the relevant ITR forms. There are five heads of income: income from “salary, house property, business and profession, capital gains, and other sources under the Income Tax Act, 1961. The forms are as different as the heads of income. Therefore, first of all, you must know that as an “individual” under income tax, which form you can use to report a particular source of income. Individual taxpayers have to have in-depth knowledge of income tax rules and how to file the returns that are compliant with the laws as well. If you do not have much time to do the rigorous paperwork and cooperate with the authorities, then reaching out to a tax professional is going to be a prudent decision.
Key Aspects of IT Returns for Individuals
ITR 1 (SAHAJ) return applies to resident individuals (other than not ordinarily resident) for having income up to Rs 50 lakhs from salary/pension, one house property, other sources (interest, family pension, dividend, etc.), and agricultural income up to Rs 5000.
The ITR 2 applies to individuals (who are not eligible for filing ITR 1) for not having income under the head profits and gains of business and profession. While ITR 3 is applicable to individuals (who are not eligible for filing ITR 1, ITR 2, and ITR 3) and have income under the head profits and gains of business and profession.
ITR 4 applies to an individual who is a Resident other than Not Ordinarily Resident, and income is computed on a presumptive basis u/s 44AD, 44ADA, and 44AE. Also, income from the following sources: salary/pension, one house property, other sources (interest, family pension, dividend, etc.), agricultural income up to Rs 5000, long-term capital u/s 112A up to Rs 1,25,000, comes under ITR 4 for individuals.
Income Tax Return Filing Process for Individuals
- Calculate your income from all the sources and compute the TDS and advance tax paid with cross-verifying form 26AS. Visit the e-filing portal of income tax and begin the filing there
- Select the assessment year you want to file the returns and provide the credentials, and then comes the time to select the proper ITR form. Choose your ITR form rightly based on your status and sources of income
- Then file all the details as per the form, like PAN, Aadhaar, TDS certificates, bank statements, investment proofs, etc.
- Submit the details and wait for the acknowledgment number that is to be sent to your registered mobile number and email ID
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Selecting the right form and filing the returns without possible errors is a task in itself. Taxpayers can find it difficult to proceed with the complex filing process and a whole list of documents. To get rid of these tax formalities and ascertain your compliance, start with TaxDunia and let our professionals handle your tax worries so that you can just be focused on your business.
