How to File Income Tax Return and Claim Your Tax Refund?

File Income Tax Return (ITR) in India

Filing your Income Tax Return (ITR) can seem overwhelming, especially when it involves a long list of forms and financial documents. You may have just received your Form 16 from your employer. You need to file your income tax return, but you have no clue where to start. 

Worry not! We're here to simplify the ITR filing process for you. Whether you're a seasoned professional or someone filing a tax return for the first time, our step-by-step guide will walk you through everything you need to know to file your ITR confidently and accurately.

What is Income Tax Return Filing?

An ITR is a form used to declare income, deductions claimed, exemptions, and net income tax liability. As per the Income Tax Act, 1961, an individual under the age of 60 can file an ITR according to the defined tax slabs if part of their income is taxable. 

You can choose from old and new tax regimes per your maximum suitability. You can file taxes for earning from sources such as salary, profit in business, property or house sale, dividend of capital gains, and interest earned. For extra tax paid in a year, you get a return from the Income Tax Department. 

Types of ITR Forms in India

Different ITR forms are used to file ITR based on applicability and relevance. Here’s a brief about each type:

Is It Mandatory to File Income Tax Return?

If your income is more than the basic exemption limit under the tax slab, you are liable to file an income tax return. The income tax rates are predecided for the taxpayers as per the income tax slabs updated every year. If you delay filing your returns, you will have to pay penalties, and it may also affect your chances of getting a loan or a visa. 

Who Can File Income Tax Return?

As per the Income Tax Act, individuals or businesses falling under a certain income bracket should file for income tax returns. Below is the list of who can file ITR after factoring the deductions on the income as allowed under Section 80C to 80U and others under Section 10:

• Individuals under 60 years of age with a total income of Rs. 2.5 Lakhs or more.
• Senior citizens (aged 60-79) with an income limit of Rs. 5 Lakhs.
• Super senior citizens (aged 80 and above) with an income limit of Rs. 5 Lakhs. 
• All registered companies generate income, whether they make a profit or not, throughout the year.
• Those who want to claim an excess income tax deduction from their annual income. 
• Foreign companies benefit from transactions made in India.
• A person claiming relief or deduction under Section 90 or 90A.
• Individuals having assets or financial entities located outside India.
• NRI earning more than Rs. 2.5 Lakhs in India in a single financial year. 

Documents Required to File Income Tax Return

The following documents are required when filing your ITR: 

• Form 16
• Form 16A and other TDS certificates
• Form 26AS
• Bank/ post office interest certificate
• Capital gains
• Details of foreign assets
• PAN card
• Aadhaar number
• Bank account details
• Donation receipts
• Salary slips
• Annual tax-saving investment proofs
• Home loan statement (if applicable)

How to File an Income Tax Return?

You can file ITR online and offline channels based on suitability. Here are the step-by-step guide for filing your ITR:

Online Process

• Visit the official website of the Income Tax Department India, for income tax e-filing.

• Log in with your PAN number and password (new users can make a fresh account using their PAN card and other personal details).

• Go to the ‘e-file’ tab on the dashboard and select the ‘Income Tax Returns’ option from the drop-down menu. Select the ‘File Income Tax Return’ option from the menu. 

 

• Select the Assessment Year as 2024-25 if you are filing for Financial Year 2023-24 and mode of filing as ‘Online’. 

• Select the applicant status: Individual, HUF, or others and click ‘Continue’.

• Select a suitable ITR type (here, you must opt for the applicable ITR form).

• Specify the reason for filing the ITR that is applicable to you. 

• Validate the pre-filled information, such as PAN, Aadhaar, DOB, contact details, etc. Also, provide your bank account details and other relevant information correctly. Confirm the summary and submit it after verifying all the details. 

• In case there’s a tax liability based on the computation, you can choose to pay now or later as per suitability.

• In case there’s no outstanding tax liability and you are eligible for a refund, click preview and submit your return. 

• Click ‘Proceed to Validation’ and then verify the ITR. 

• E-verify your returns within 30 days of ITR filing. If you don’t do it, your return will stand ‘not filled’ at all. You can e-verify your ITR using Aadhar OTP, electronic verification code, or by sending a physical copy of ITR-V to CPC, Bengaluru.  

Offline Process

• Visit the e-filing page of the Income Tax Department India.
• Select the ‘Download’ option available on the navigation bar. 
• Download the utility software (Zip file) and extract it in a different folder.
• Select the relevant form and fill out the details. 
• Generate the form preview as an XML file and save it. 
• Recheck the details before calculating the final tax liability amount. 
• Go to the Income Tax Department website and log in using your PAN number and password. 
• Go to the ‘Income Tax Return’ option and choose the assessment year and ITR filing mode as ‘offline’.
• Specify the tax filing type: original or revised return.
• For submission mode, select the ‘Upload XML’ option and submit the ITR after selecting the correct verification code. 

How to Check ITR Status Online?

Once you have finished filing your ITR and verifying it, the ITR status will be reflected as ‘processing’. Here’s how you can check the status of your income tax return filing online: 

Without Login Credentials: 

• Go to the official website of Income Tax Return India. 
• Click on the ‘ITR Status’ tab. 
• You will be redirected to a page where you can enter your PAN number, ITR acknowledgement number, and captcha code. 
• Once verified, the ITR status is reflected on your screen.

Using Login Credentials:

• Go to the official website of Income Tax Return India. 
• Log in using your login credentials.
• Click on the ‘View Returns/ Forms’ option. 
• From the drop-down menu, select the income tax return and assessment year. 
• Once done, the ITR status is reflected on the screen. 

Due Date for ITR Filing

Individuals filing for the tax return for the financial year 2023-24 can file ITR before the following dates to avoid any penalties: 

Penalty for Late ITR Submission

When you fail to pay ITR, the Income Tax Department may impose specific penalties against you. But if you continuously miss the deadlines, legal action may be against you. So we recommend you responsibly pay ITR, or else the following penalties may apply for late ITR submission: 

Avoid Common Mistakes While Filing ITR

Here are the common mistakes that you can avoid while filing your taxes:

Filling the Wrong Tax Form: Different ITR forms are available based on your source of income and ITR filing status. Visit the official website of the Income Tax Department to select the correct form. 

Wrong Personal Information: Providing wrong personal details, such as false PAN card details, etc. can lead to a delay or rejection of processing income tax returns. 

Incorrect Bank Account Details: Be careful while entering your bank details, such as account number, IFSC code, and other details, as incorrect information may delay the processing of the funds. 

Not Disclosing All Income: Not disclosing your true yearly income is considered tax evasion and can result in heavy fines. 

Not Declaring Deductions: Tax deductions can be claimed on different investments, savings, and expenses. When you declare all the eligible deductions, it may save you higher taxes. 

Failing to E-Verify Your Return: Verification of the return is important within the prescribed time limit; otherwise, the return will be treated as invalid. 

Not Filing the Return on Time: To avoid heavy penalties, submit your income tax return before the due date. 

Hiding Capital Gains from Mutual Funds: Make sure to disclose your capital gains as they are applicable for short and long-term tax gains. 

Final Words

With the proper guidance and a step-by-step approach, filing your ITR becomes easy and manageable. If you are filing ITR by yourself, ensure you gather the necessary documents, choose the correct ITR form, and follow the submission and verification steps. This will help you file your returns accurately and on time. By staying proactive about your tax responsibilities, you can avoid penalties and ensure a smooth financial year ahead. Remember, timely tax filing keeps you compliant with the law and helps you manage your finances better.

* Disclaimer: The details, facts, or figures given here are intended solely for the reader's informational purposes and should not be relied upon for personal, medical, legal, or financial decisions. Please visit the insurer's website for the latest updates. We do not endorse any particular insurance company or insurance product provided by any insurer.

Frequently Asked Questions on ITR Filing

Question: Can I file income tax returns after the due date?

Answer: Yes, you can file the ITR after the due date. However, doing so carries a penalty of Rs. 1,000 to Rs. 10,000.

Question: Why should I file an income tax return?

Answer: Income tax is the major source of income for the government of India. Timely ITR filing helps with paying salaries, finding government projects, etc.

Question: What is the last date to file a tax return?

Answer: The last date to file ITR for the financial year 2023-24 is 31 July 2024 for individuals/ HUF/ AOP/ BOI (not requiring audit).

Question: How to file taxes with no income?

Answer: Filing taxes with no income is still important to comply with tax regulations. Here’s a quick guide:

• Collect your PAN card and Aadhar card.
• Access the Income Tax e-Filing portal using your PAN.
• Select ITR-1 or ITR-4, indicating “No Income” in the income details section.
• Enter personal details, and mark “No Income” for the financial year.
• Complete the form and submit it online.
• E-verify the return via Aadhaar OTP, net banking, or send a signed ITR-V to CPC.

Question: How should a beginner file a tax refund?

Answer: Filing a tax refund is straightforward for beginners. Follow the given steps for a smooth and hassle-free tax refund process:

• Gather the necessary documents like PAN, Aadhaar, Form 16, and investment proofs. 
• Register on the Income Tax e-Filing portal and choose the appropriate ITR form (usually ITR-1 for salaried individuals). 
• Fill in your income details, tax payments, and deductions. 
• Claim your refund by ensuring correct TDS entries. 
• Submit the ITR form, receive the acknowledgement (ITR-V), and verify it electronically or by post. 
• Track your refund status on the e-filing portal or the TIN NSDL website. 

Question: Can you file ITR without CA?

Answer: Yes, you can file your ITR without CA through the official website of the Income Tax Department of India. 

Question: How to download an income tax return file?

Answer: Follow the given steps to download the income tax return verification form:

• Log in to the official website of Income Tax Return India.
• Click on the ‘View Returns/ Forms’ option.
• Select the ‘Income Tax Returns’ option and select the year. 
• Select the acknowledgement number to download the ITR-V and click ‘Download’. 
• Once the file is downloaded, you can open it by providing the password. The password is your PAN number in lowercase letters, followed by your date of birth. 

Example: 

PAN Card: ABCDE1234F

Date of Birth: 09/12/2001

Password: abcde1234f09122001

Question: How to verify the ITR?

Answer: You can e-verify the ITR by generating OTP through Net Banking, ATMs, etc. Alternatively, you can send the printed and signed document to CPC Bangalore within 120 days of e-filing.  

Question: What do I do if I have made a mistake while filing ITR?

Answer: In such cases, you can file for a revised return before 31 December of the assessment year. 

Question: When will I get my income tax refund after filing ITR?

Answer: Usually, it takes 30-90 days to get the ITR refund. 

Question: Can I file ITR without Form 16?

Answer: Yes, you can file an income tax return without Form 16.