Filing your Income Tax Returns (ITR) in India can be done without the help of a Chartered Accountant (CA). Thanks to user friendly websites and technology, it is now easier to do it yourself. This helps ensure financial transparency and legal compliance which makes ITR filing a necessary task for taxpayers. In This article we will explore that How to file ITR without CA and related issues.
Table of Contents
What is Income Tax Return (ITR)?
ITR is a document submitted to the Income Tax Department in India. It details your income and taxes owed for the fiscal year from April 1st to March 31st. Individuals and companies earning above a certain threshold must file it. ITR serves as proof of income and tax payments. It is also useful for obtaining loans, visas (particularly for countries like the USA and Canada), and credit card approvals. Additionally, filing ITR allows you to claim refunds in case of overpayment of taxes. Understanding how to file ITR without CA can be beneficial regardless of whether you are an employee or a business owner.
When You Can file ITR Without CA?
In the following cases, you can file your ITR without CA.
- Basic Tax Knowledge: With a foundation in tax principles like slab rates, deductions, and exemptions, you can confidently file your ITR on your own after some research.
- Simple Income Structure: If your income primarily comes from a salary and modest additional sources like interest on savings and rental income with TDS, you can navigate the online filing process independently.
- Straightforward Investments and Deductions: If your investments and deductions align with common categories like sections 80C and 80D, you can manage these using online tools and pre-filled information on the Income Tax portal.
Benefits of filing ITR Without CA
It is very easy to file your ITR yourself which has several benefits as follows:
- Cost Savings: You can save money by doing your ITR yourself instead of hiring a professional CA.
- Government Support: The government provides online resources like the Income Tax e-Filing portal to make self-filing convenient.
- Online Learning Tools: There are numerous tools, videos, FAQs, and guides available to guide you through the process.
- Accessible Assistance: Digital platforms offer 24*7 support and expert advice which provides assistance whenever you need it.
How to file ITR Without CA: Step-by-Step Guide
Here is a step-by-step detailed guide on how to file ITR without CA:
Step 1 - Register on the Income Tax Portal
To start filing your Income Tax Return independently, you must first register on the Income Tax e-Filing portal. Here are the steps:
- Visit the official Income Tax e-Filing website.
- Click on the “Register” or “Sign Up” option.
- Create a login ID and password. Choose a password which is secure and easy to recall.
- Enter your Permanent Account Number (PAN) and other personal details required by the registration form like mobile number, email, address.
- Complete the registration process by following the instructions given on portal.
Step 2 - Choose the Correct ITR Form
Before filing your ITR, it is important to select the correct form for your financial situation and income sources:
- ITR-1 (Sahaj):- It is used for salaried individuals with income below ₹50 lakhs including salary, one property income, and interest income.
- ITR-2: It is used for individuals or Hindu Undivided Families (HUFs) with income from non-business sources like income from more than one property, capital gains, foreign assets, etc.
- ITR-3: It is used by individuals and Hindu Undivided Families (HUFs) with income from business or profession
- ITR-4: It is for those taxpayers who choose the presumptive income scheme under sections 44AD, 44ADA, or 44AE of the Income Tax Act.
- Other Forms: ITR-5 to ITR-7 is not applicable for individuals. Also we will not recommend to file these ITR without CA as it may require CA attestation or expertise.
Step 3 - Fill in Personal and Income Details
In this step, you need to provide accurate personal and income information:
- Personal Information: Enter your full name, current address, PAN number, and Aadhaar number (optional). Ensure the information is correct and updated. You should also provide your bank account details.
- Income Details: you need to carefully list all sources of income including capital gains, interest earned, dividends received, wages or salary, and any other income and fill all earnings thoroughly for complete reporting.
Step 4 - Declare Deductions
After filling in your personal and income details, it is important to declare any deductions for which you are eligible for:
- Deductions: you must indicate your eligibility for deductions in sections 80C, 80D, and 80G of the Income Tax Act. These deductions can lower your taxable income if you invest in specific schemes, pay health insurance premiums, or donate to the approved charities.
- Tax Rebates: You must check if you have included claims for any tax benefits like TDS (direct taxes already deducted from your income). These rebates can reduce your tax bill and even lead to a refund if you have more TDS deducted than actual income tax required.
Step 5 - Verify and Submit ITR
You must double check all the information you have provided in above steps to make sure everything is correct before moving forward. This is important to avoid errors.
- Verification: Once you are sure everything is accurate, you need to verify your ITR. There are multiple ways to verify your ITR like through online banking, Aadhar OTP (one-time password) or an electronic confirmation code (EVC). You need to choose the method that works best for you and follow the instructions to complete the verification process.
- Submission: After verifying your ITR, you can submit it instantly through the e-filing portal. This step complete the process of how to file ITR without CA.
Documents Required for Filing ITR Online
To file your income tax returns online, you will need the following documents:
- Aadhaar Card: Your Aadhaar card for identification purposes linked to your PAN.
- PAN Card: Your PAN for registering on portal and submitting the ITR.
- Bank Statements: To know the interest income and other financial transactions.
- Form 16: For salaried individuals, providing income and tax deduction details.
- Forms 16A/16B/16C: For additional income sources other than salary.
- Investment Proof: Like Invoices, certificates, and receipts supporting deductions under relevant sections.
- Property: Relevant documents for claiming deductions or reporting income from property.
- Capital Gains: For any profits (gains) from selling assets like stocks or property.
- Additional Income: Document and disclose any income sources beyond your salary.
When We need to File Through CA?
There are certain situations when you need to file with assistance from a Chartered Accountant (CA) can be highly beneficial:
- Complex Finances: If you have multiple income sources including business profits, freelancing, investments, or foreign income, a CA can clear these complexities, ensure accurate tax reporting, and maximize deductions.
- Audit Requirement: Businesses or professionals earning above certain income levels (₹1 crore and ₹50 lakh, respectively) are required the mandatory audits. A CA’s guidance is important for a smoother audit process.
- Tax Planning: CAs can develop strategies to reduce your taxes while maximizing deductions and exemptions. They can guide your investments and help you choose tax saving options to make wise financial decisions.
- Tax Complexities: When you are unsure about tax rules or reporting requirements, CAs offer expert guidance. They can clarify confusing matters that ensure you follow tax laws correctly and help you avoid penalties or legal issues.
Benefits of Hiring a CA for ITR Filing
Here are the benefits of filing your ITR through a Chartered Accountant (CA):
- Expert Tax Knowledge: CAs have deep understanding of tax laws, so you can trust your return to be accurate and proper.
- Time Saver: CAs streamline the filing process, saving you time and hassle.
- Accuracy Guarantee: CAs reduce the risk of errors, ensuring your return meets legal requirements.
- Convenient Support: CAs provide guidance and support throughout the filing process, making it easy and stress free
- Assistance and Guidance: CAs handle every step of the tax filing process, offering support and direction along the way.
- Personalized Strategies: CAs provide professional advice and strategies to help taxpayers minimize their tax liability based on their unique circumstances.
- Expertise for Complex Taxes: While there are fees involved, their expertise can be valuable especially for complex tax situations. For individuals with complex tax situations like multiple income sources, investments, and deductions, hiring a CA ensures a clear understanding and saves time by resolving complexities efficiently.
Read also: All About Form 16 and 16A & Difference Between Them
Conclusion
You do not need to hire a chartered accountant to file your income tax returns in every case. It is possible to do it yourself which can save you money. Additionally it is a great way to learn about your finances and tax laws. If you follow the right steps and use the tools available, you can file your ITR accurately. Doing your own taxes makes you more financially independent and helps you understand taxes better. This will help you make better financial decisions in the future. Hope you have understood the full process of how to file ITR without CA.
Frequently Asked Questions (FAQ)
The government unveiled a revised tax system in the 2023 Budget, featuring lower tax rates and fewer tax-saving options. To facilitate the transition to this new system, various incentives were implemented.
Comparing the old and new tax regimes for the financial year 2023-24 (assessment year 2024-25) shows key differences. The new regime, introduced in Budget 2023, has simpler tax rates but lacks numerous tax deductions. In contrast, the old regime maintains the existing tax brackets and provides more tax concessions.