ITR: First Time Tax Filers? Don't PANIC, Follow These Steps For Successful Income Tax Return Filing!

Filing income tax for the first time can be confusing, scary and nerve-wrecking, especially when you're not aware from where to begin. However, time after time, the process for filing income tax has been made easier. Irrespective of filing for personal tax or corporate tax, they all can be done through e-filing. You are obligated to pay taxes from your income and income from other sources including investments, insurances, or profits from other medium.

ITR is an Annual Statement that individuals need to file before Income Tax Department. ITR notifies the tax authorities about the income you've earned in a financial year such as salary, earnings made from capital gains, income from a business, house rent, or any other sources. The deadline for filing ITR every year is scheduled on July 31, until further notices for extension.

So the first step that one needs to remember as first time flier is to register yourself on the income tax portal.

A Step-By-Step Guide Of How To Register At Income Tax Portal:

Step 1: Go to the e-Filing portal https://www.incometax.gov.in/iec/foportal. On the top corner, you will find the option of Register, Click On It.

Step 2: Click Others and select the Category as Tax Deductor and Collector.

Step 3: Enter the TAN of the Organization and click Validate.

Step 4:

A: If TAN is available in the database, registered with TRACES and the registration request is not raised already and pending for approval: Click Continue to view the Basic Details page. The basic details are pre-filled. Click Continue.

B: If TAN is available in the database, but not registered with TRACES and registration request is not raised already and pending for approval: Click Continue to view the TRACES page. Click Register with e-Filing on TRACES to view the Basic Details page. Enter the basic details as required and click Continue. You first have to first register on TRACES. From there, you will be taken to the e-Filing Registration page on clicking Register with e-Filing.

C: If TAN is available in the database, registration request is raised already and pending for approval: An error message is displayed and you can choose to withdraw the registration process.

Step 5: Enter the details of the person making payments or collecting tax and click Continue.

Step 6: Provide the contact details including Primary Mobile Number, email ID and Postal Address. Click Continue.

Step 7: Two separate OTPs are sent to your primary mobile number and email ID as entered in Step 6. Enter the separate 6-digit OTPs and click Continue.

It needs to be noted that OTP will be valid for 15 minutes only, and you will have 3 attempts to enter the correct OTP. The OTP expiry countdown timer on screen tells you when the OTP will expire. On clicking Resend OTP, a new OTP will be generated and sent.

Step 8: On the Verify Details page, review the details provided, edit the details if necessary, then click Confirm.

Step 9: On the Set Password page, enter your desired password in both the Set Password and Confirm Password textboxes, set your personalized message, and click Register. Do not click Refresh or Back, until you are successfully given the green signal of registration.

ITR Forms:

There are six ITR forms which you can choose from to file your income tax. Here's what they are:

ITR-1 (SAHAJ) can be filed by resident Individuals having total income upto Rs. 50 lakh and having income from Salaries, one house property and income from other sources. Individuals and HUFs not having income from business or profession [and not eligible for filing ITR Form-1 (Sahaj)] can file ITR-2, while those having income from business or profession can file ITR Form- 3.

Further, ITR-4 (SUGAM) is for resident individuals, HUFs and Firms (other than LLP) having total income upto Rs. 50 lakh and having income from business and profession computed under section 44AD, 44ADA or 44AE. Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form- 5. The companies other than those claiming exemption under section 11 can file ITR Form-6.