Starter Pack To File Your Income Tax Returns

There are two types of taxes that we pay to the government: One on the goods and services we buy (called as indirect taxes like the GST) and the other on the income we earn (called as direct taxes like income tax).

Filing income tax returns is an exercise in which you:
1. Reveal your entire income to the Government
2. Calculate the tax you have to pay on it
3. Pay those taxes, and then,
4. Get refunds from the Government on stuff that was “exempt” from tax
It sounds simpler than it looks – and your Chartered Accountant will do most of the heavy-lifting for you – but here’s a sneak peek into the whole exercise.

Step #1
Familiarize yourself with these basic IT terms

Step #2
Go through this checklist of everything you’ll need to file your income tax returns.

Step #3

Identify the ‘heads’ under which your sources of income fall, and calculate how much of it is taxable.

Step #4

Once you’ve identified your taxes, choose a way to file your returns.

Step #5

Verify your returns! This process isn’t complete until you do.

Step #6

Check this financial calendar for any upcoming tax deadlines (and extension dates)!