Contact your employer to receive Form 16, usually issued on or before the 31st of July following the financial year in which you earned the income.
2. Verify Form 16 Details
Check the details mentioned in Form 16, such as your name, PAN (Permanent Account Number), employer's TAN (Tax Deduction and Collection Account Number), salary details, deductions under various sections (like Section 80C, 80D, etc.), and tax deducted at source (TDS).
3. Gather Other Income and Investment Details
Collect information about any other sources of income you may have, such as interest income, rental income, capital gains, etc.
Gather details of investments made during the financial year that are eligible for deductions under various sections of the Income Tax Act, such as life insurance premium, provident fund contributions, etc.
4. Choose the Appropriate Income Tax Form
Based on your income sources and other criteria, select the relevant income tax form for filing your returns. Commonly used forms for salaried individuals with Form 16 are ITR 1 (Sahaj) or ITR 2.
5. Calculate Total Income and Tax Liability
Add all your sources of income and calculate your total taxable income. Consider eligible deductions to arrive at your total income on which tax is payable.
Use the income tax slabs applicable for the financial year to calculate the income tax liability.
6. Claim Deductions and Rebates
Utilize all eligible deductions under various sections of the Income Tax Act to reduce your taxable income.
Check for any applicable rebates to further reduce your tax liability, such as the rebate under Section 87A.
Fill out the relevant income tax form online or offline (if applicable) with the required details, including income, deductions, and tax payments.
Verify the information provided and submit the return. You will receive an acknowledgment (ITR-V) upon successful submission.
8. E-Verify the Income Tax Return
After filing your return, e-verify it using any of the available methods like Aadhaar OTP, Net Banking, Demat Account, Bank Account, or EVC (Electronic Verification Code).
E-verification must be done within 120 days of filing the return; otherwise, the return will not be considered valid.
9. Keep Documentation
Maintain copies of Form 16, investment proofs, and other relevant documents as supporting evidence for the income tax return filed.
10. Seek Professional Assistance (if needed)
If you find the income tax filing process complex or have multiple sources of income, consider seeking help from a qualified chartered accountant or tax consultant.
Remember to file your income tax return on time and accurately to comply with the tax laws and avoid penalties or legal issues.
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