1. Collect Income Details:
- Gather information about all your income sources, which may include:
- Salary income from one or more employers (Form 16)
- Income from house property (rental income)
- Income from business or profession (if you are self-employed or a freelancer)
- Income from capital gains (profits from the sale of assets like stocks, real estate, etc.)
- Income from interest on savings accounts, fixed deposits, bonds, etc.
- Any other sources of income like gifts, lottery winnings, etc.
2. Compute Total Income:
- Add up all the income earned from different sources to calculate your total income.
3. Claim Deductions:
- Identify and claim deductions available under various sections of the Income Tax Act, such as Section 80C (for investments in LIC, PPF, etc.), Section 80D (for health insurance premiums), Section 24 (for home loan interest), and others. Deductions help in reducing your taxable income.
- Select the correct Income Tax Return (ITR) form that suits your income sources and other criteria. The most commonly used forms for individuals with income from multiple sources are ITR 2, ITR 3, and ITR 4 (Sugam).
- Enter all the income details, deductions claimed, and other required information in the chosen ITR form.
- Review and validate the filled ITR form to ensure accuracy and completeness.
7. Calculate Tax Liability:
- Calculate the tax liability on your total income as per the applicable income tax slabs and rates.
8. Pay Tax (if applicable):
- If you have any tax liability after considering deductions, pay the tax due either through online modes or physical challans at authorized banks.
9. File the ITR:
- File the ITR online on the official income tax e-filing portal by logging in with your PAN and password.
10. E-Verify the ITR (if required):
- After filing the return, e-verify it using any of the available methods like Aadhaar OTP, Net Banking, Demat Account, Bank Account, or EVC (Electronic Verification Code).
11. Preserve the ITR Acknowledgment:
- Keep a copy of the ITR-V (acknowledgment) as proof of filing the income tax return.
Filing income tax returns accurately when you have income from multiple sources is essential to comply with tax laws and avoid any penalties or legal issues. If you find the process complex, consider seeking help from a qualified chartered accountant or tax consultant.