Income Tax India: Simple Steps to File, Save, and Stay Clear

Paying tax can feel like a chore, but it doesn’t have to be a headache. In this guide you’ll get the basics you need to file your return, grab the deductions you’re entitled to, and keep the tax department happy.

Key Dates and Forms You Must Know

The financial year in India runs from April 1 to March 31. Your tax return, called the ITR, is due by July 31 for most individuals. If you miss the deadline, you’ll pay a penalty and interest, so mark the date on your calendar.

First, make sure you have a PAN (Permanent Account Number). It’s the ID the tax office uses to track you. If you don’t have one, apply online – it’s free and takes a few days.

Next, decide which ITR form you need. Most salaried people use ITR‑1 (Sahaj). If you have income from rent, capital gains, or a business, you’ll need ITR‑2 or ITR‑3. The forms are available on the Income Tax Department’s e‑filing portal.

The portal lets you file completely online. You’ll need your Aadhar linked to PAN, your bank details, and Form 16 (the salary statement your employer gives you). Upload the PDFs, verify with an OTP, and you’re done.

Common Deductions That Cut Your Tax Bill

Deductions are the easiest way to lower the tax you owe. The most popular is Section 80C – you can claim up to ₹1.5 lakh for things like life insurance premiums, EPF contributions, and ELSS mutual funds. If you’re paying a health insurance premium for yourself, spouse, or parents, you can claim an extra ₹25,000 under Section 80D.

Got a home loan? The interest paid on the loan is deductible up to ₹2 lakh under Section 24(b). If you’re buying property, the principal repayment also falls under 80C.

Donations to approved charities give you a 50 % or 100 % deduction under Section 80G, depending on the organization. Keep the receipts – the tax office asks for proof.

Don’t forget the standard deduction of ₹50,000 for salaried employees. It’s automatic; you don’t need to file any extra paperwork.

Once you’ve added up all the deductions, subtract them from your total income to get your taxable income. Then apply the slab rates: up to ₹2.5 lakh is tax‑free, ₹2.5–₹5 lakh is 5 %, ₹5–₹10 lakh is 20 %, and above ₹10 lakh is 30 % (plus cess).

If you’re unsure about any numbers, the Income Tax portal has a handy tax calculator. Plug in your salary, deductions, and the calculator shows you the exact tax payable.

Finally, after you file, you’ll receive an acknowledgment (ITR‑V). Keep it safe; you may need it if the tax department asks for clarification. You can also track the status of your return on the portal – just enter your PAN and assessment year.

That’s it – the core steps to file income tax in India without sweating. Follow the dates, use the right form, claim the deductions you qualify for, and you’ll keep more money in your pocket while staying on the right side of the law.