TYPE OF ITR (INCOME TAX RETURNS) FOR INDIVIDUALS

Filing an Income Tax Return (ITR) is a mandatory obligation for individuals whose income exceeds the specified threshold limits in India. Here’s a comprehensive guide on how individuals can file their income tax returns, including types of forms, eligibility, documents required, and the step-by-step process:

Types of ITR Forms for Individuals

1. ITR-1 (Sahaj):
   • Eligibility: For individuals being a resident (other than not ordinarily resident) having total income up to ₹50 lakh, having income from salaries, one house property, other sources (interest, etc.), and agricultural income up to ₹5,000.
   • Not Eligible: If you are a director in a company, have held any unlisted equity shares at any time during the previous year, or have income from more than one house property, etc.
2. ITR-2:
   • Eligibility: For individuals and HUFs not having income from profits and gains of business or profession.
   • Includes: Income from salary/pension, house property, capital gains, and other sources.
3. ITR-3:
   • Eligibility: For individuals and HUFs having income from profits and gains of business or profession.
4. ITR-4 (Sugam):
   • Eligibility: For individuals, HUFs, and firms (other than LLP) being a resident having total income up to ₹50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA, or 44AE.

Documents Required for Filing ITR

1. PAN Card
2. Aadhaar Card
3. Bank Account Details: Including IFSC code.
4. Form 16: Provided by your employer if you are salaried.
5. Form 16A/16B/16C: For TDS on income other than salary.
6. Form 26AS: Consolidated annual tax statement.
7. Salary Slips
8. Investment Proofs: For claiming deductions under section 80C, 80D, etc.
9. Home Loan Statements: If applicable.
10. Capital Gains Statements: If you have earned capital gains.
11. Rental Income Details: If applicable.
12. Interest Certificates: For interest on savings accounts, FDs, etc.
13. Other Documents: As applicable, such as proof for claiming deductions under other sections.

Steps to File Income Tax Return

Step 1: Collect Documents and Information

Gather all necessary documents, including Form 16, Form 26AS, bank statements, investment proofs, and other relevant financial documents.

Step 2: Choose the Appropriate ITR Form

Select the correct ITR form based on your income sources and eligibility.

Step 3: Register/Login to the Income Tax e-Filing Portal

• URL: Income Tax e-Filing Portal
• If you are a new user, register using your PAN, which will serve as your user ID.
• If you are an existing user, log in using your PAN, password, and captcha code.

Step 4: Download the ITR Utility

• Download the Excel or Java utility for the chosen ITR form from the e-filing portal.
• Alternatively, you can use the online method available on the e-filing portal.

Step 5: Fill in the Details

• Personal Information: Fill in your personal details like name, PAN, Aadhaar, address, etc.
• Income Details: Enter your income details from salary, house property, capital gains, other sources, etc.
• Deductions: Enter details of deductions under section 80C, 80D, and other applicable sections.
• Tax Paid and TDS: Enter details of TDS as per Form 16, 16A, and 26AS.

Step 6: Validate and Calculate Tax

• Validate all the filled details.
• Calculate the tax payable or refund due.

Step 7: Generate XML File

• After validating, generate the XML file of the filled ITR form.

Step 8: Upload the XML File

• Log in to the e-filing portal and click on ‘e-File’ > ‘Income Tax Return’.
• Upload the generated XML file, select the appropriate assessment year, and submit.

Step 9: Verify ITR

After submitting the ITR, you need to verify it. There are various methods for verification:

1. Aadhaar OTP: Verify using OTP sent to your registered mobile number linked with Aadhaar.
2. EVC: Electronic Verification Code sent to your registered mobile number and email.
3. Net Banking: Verify through net banking login.
4. Sending Signed ITR-V: Download ITR-V (acknowledgment), sign it, and send it to CPC, Bengaluru within 120 days of filing.

Tips for Filing ITR

1. Accuracy: Ensure all details are accurate to avoid discrepancies.
2. Proofs: Keep all investment and deduction proofs handy.
3. Deadlines: File your return before the due date to avoid penalties.
4. Help: Seek professional help if you have complex income sources or are unsure about the process.

By following these steps and ensuring all information is accurate, individuals can successfully file their income tax returns and stay compliant with the tax regulations.