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Comprehensive Guide to Filing Income Tax Returns (ITR) for Various Income Sources in India Using the
Category: Income tax, Posted on: 07/07/2024 , Posted By: Team Modern Tax Consultants
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Comprehensive Guide to Filing Income Tax Returns (ITR) in India

Comprehensive Guide to Filing Income Tax Returns (ITR) in India Using the E-Filing Portal

Filing Income Tax Returns (ITR) directly on the Income Tax Department's e-filing website is straightforward if you follow the steps carefully. This guide will cover filing ITR for income from futures and options, intra-day trading, capital gains, professional receipts under Section 44ADA, and other income sources.

Step-by-Step Guide

1. Gathering Required Documents

Before starting, ensure you have the following documents:

  • PAN Card
  • Aadhar Card
  • Bank Statements
  • Trading Account Statements (for futures and options, intra-day trading)
  • Form 26AS
  • Capital Gains Statements
  • Professional Income Receipts (for Section 44ADA)
  • Other relevant income documents

2. Login to the E-Filing Portal

Visit the Income Tax Department’s e-filing website: Income Tax E-Filing Portal
Login: Use your PAN as the user ID, along with your password and Captcha code.

3. Navigate to the E-Filing Section

Dashboard: Once logged in, go to the 'e-File' menu.
Income Tax Return: Select ‘Income Tax Return’ from the dropdown menu.

4. Select the Assessment Year and ITR Form

Assessment Year: Choose the relevant assessment year.
ITR Form: Select the appropriate ITR form based on your income sources:

  • ITR-3: For income from futures and options (F&O), intra-day trading (speculative business), and other business/professional income.
  • ITR-2: For capital gains and other income (excluding business income).
  • ITR-4: For professional receipts under Section 44ADA (presumptive taxation).

5. Filling Out the ITR Form

a. Income from Futures and Options (F&O)

Profit and Loss Statement: Input the details from your trading account.
Business Income Section: Enter F&O income under 'Business Income'.
Books of Accounts: Maintain records and fill in details as required.

b. Income from Intra-day Trading

Speculative Business Income: Report this under 'Business Income'.
Details of Speculative Transactions: Input daily trading details.

c. Capital Gains

Short-term and Long-term: Classify and report capital gains accordingly.
Capital Gains Schedule: Fill in the 'Schedule CG' with details of each transaction.
Indexation: Apply indexation for long-term capital gains.

d. Professional Receipts under Section 44ADA

Presumptive Income: Under Section 44ADA, 50% of gross receipts are deemed as income.
Gross Receipts: Enter total gross receipts under 'Presumptive Income' section.
Form ITR-4: Complete the simplified form.

e. Other Income

Interest Income: Report interest from savings accounts, fixed deposits, etc.
Rental Income: Include any rental income received.
Other Sources: Use the appropriate section for other incomes.

6. Deductions and Exemptions

Sections 80C, 80D, etc.: Enter details of deductions and exemptions.
Verify against Form 26AS: Ensure TDS details match with Form 26AS.

7. Validate the Return

Validation: Use the 'Validate' button to check for any errors in the form.
Correction: Rectify any errors highlighted during validation.

8. Submit and E-Verify

Submit: Once validated, click on 'Submit'.
E-Verification: Choose an e-verification method (Aadhar OTP, Net Banking, etc.) to complete the process.
Acknowledgment: Download and save the acknowledgment receipt.

Conclusion

Filing your ITR directly on the Income Tax Department’s e-filing website is a detailed process that ensures compliance and accuracy. By following these steps, you can efficiently report income from various sources and take advantage of applicable deductions and exemptions.


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