The most frequent question asked by any citizen is that why shall he pay any tax?
To answer this question, paying taxes is our societal responsibility. The taxes are utilised
by the government to pay for the country's defence services, welfare and social services,
its health and education. It is the most effective tool used to redistribute income so as to
reduce income disparity among the citizens.
Filing an income tax return (ITR) can seem overwhelming, but with proper guidance, you
can navigate through the process smoothly. Here's a comprehensive guide to filing your
income tax return for the financial year 2022-23 (assessment year 2023-24) in India:
Step 1- Determine your filing category: The first step is to identify your filing category
based on your income sources and other criteria. Common categories includes Individuals,Hindu Undivided Families (HUFs), partnership firms and companies etc.
Step 2- Gather required Documents: Collect all relevant documents such as Form 16A/Form 16B/Form 16C (for TDS on non-salary income), bank statements, investment proofs, rent receipts, and any other supporting documents related to your income and deductions.
Step 3- Compute your Total Income: Calculate your Total Income by adding income from various sources such as salary, house property, business or profession, capital gains, and other sources. Ensure you consider all eligible deductions to reduce your taxable income.
Step 4- Compute Tax Liability: Apply the applicable income tax slab rates and compute your tax liability. Take into account deductions under various sections of the Income Tax Act, such as Section 80C (for investments like PPF, ELSS, life insurance premium),Section 80D (for health insurance premium), and other relevant sections.
Step 5- File ITR Online: Visit the official website of the Income Tax Department of India
www.incometaxindiaefiling.gov.in and register yourself as a taxpayer. If you're already registered, log in using your credentials.
Step 6- Choose the correct ITR form: Select the appropriate Income Tax Return (ITR)
form based on your filing category and download it. (e.g. ITR-1, ITR-2, ITR-3 and ITR-4) Why shall I pay tax???
Step 7- Fill out the ITR form: Fill out the ITR form with accurate details, including personal information, income details, deductions, and tax payments made during the financial year. Double-check the information for accuracy and completeness.
Step 8- Verify your return: After filling out the ITR form, verify it using one of the available methods: Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed physical copy to the Centralized Processing Centre (CPC) within 120 days of e-filing.
Step 9- E-file your ITR: Upload the verified ITR form on the income tax e-filing portal and submit it. On successful submission, you'll receive an acknowledgement (ITR-V) via email. Download and keep a copy of the ITR-V for your records.
Step 10-ITR-V submission (if applicable): If you haven't verified your ITR electronically,
you must physically sign the ITR-V form and send it to the CPC within 120 days of e-filing. The address will be mentioned in the ITR-V.
Step 11- Process ITR-V and complete the process: The CPC will process the ITR-V and send an acknowledgment to your registered email ID. Once processed, your return filing is considered complete. You can also track the status of your return on the income tax e-filing portal.
Step 12- Rectification and responding to notices (if required): In case of any discrepancies or if you receive a notice from the Income Tax Department, respond promptly and take necessary action to rectify the issues.
Note: It's advisable to consult a tax professional or chartered accountant for complex tax
matters or if you have doubts about any aspect of your tax return.Further, a very common misconception about the filing of Returns is that people tend to believe that they are obligated to file their return of income only if their Net income i.e., income after claiming all the deductions u/s section 10 or section 10A or section 10B or section 10BA or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB or Chapter VI-A , exceeds the maximum amount not chargeable to Income Tax. However, as per sixth proviso to section 139(1) of the Income Tax Act, every person whose Gross Total Income before such aforesaid deductions exceeds the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in such form and manner as may be prescribed. In other words, if your income before claiming the deductions is more than or equal to Rs. 2.5 Lakh, then you shall be liable to file the Income Tax Return. It is advisable to file your income tax return within the due dates specified by the Income Tax Department to avoid the imposition penalties or interest charges such as Interest u/s 234A/B/C and Late Fees u/s 234F. The due date may vary depending on your filing category and certain conditions, so stay updated with the latest notifications from the department.

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