Filing Your Income Tax Return: Should You Do It Yourself or Hire a CA? Experts Explain
Filing an Income Tax Return (ITR) has become significantly easier in recent years, thanks to the Income Tax Department’s increasing use of technology. However, many taxpayers are still unsure whether they should file their returns on their own or hire a Chartered Accountant (CA) to handle the process.
While some people prefer the convenience of self-filing, others worry about making mistakes that could lead to receiving a notice from the department. To address this confusion, tax experts have shared clear guidelines on when you can file independently and when professional help is advisable.
If You Have Limited Income Sources, You Can File Your ITR Yourself
According to experts, if a taxpayer’s income sources are limited, filing an ITR on their own is entirely feasible. This is especially true for salaried individuals, as their tax is typically deducted at source (TDS) by the employer before the salary is credited to their account.
At the end of the financial year, employers issue Form 16 to employees, which contains essential details such as total income, TDS, taxable income, and deductions claimed. With this document in hand, filing becomes a straightforward process.
Salaried Taxpayers Can Use the ITR-1 Form
If you are a salaried employee earning up to ₹50 lakh annually, you can use the ITR-1 form, also known as “Sahaj.” This form is designed for individuals whose income comes from salary, interest, and dividends. It can also be used if you have long-term capital gains of up to ₹1.25 lakh from listed shares or equity mutual funds.
ITR-1 is considered the simplest ITR form, making it ideal for individuals with uncomplicated financial situations.
Step-by-Step Guide to Filing ITR Online
To self-file, visit the official e-filing portal at https://www.incometax.gov.in. Log in using your PAN as your user ID and your password. Once logged in:
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Go to the “e-File” section and select “Income Tax Return.”
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Choose the relevant assessment year.
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Select the “Online” filing mode and click “Continue.”
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Choose “Individual” as your category and select the ITR-1 form.
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Specify the reason for filing your return.
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Fill in your personal, income, and tax details.
Many details are now pre-filled based on your employer’s submissions and bank records, so you only need to verify and confirm them.
Don’t Forget to Verify Your Return Within 30 Days
Submitting your ITR is not the final step—you must verify it within 30 days of filing. You can do this through net banking, Aadhaar OTP, or other electronic verification methods. Failing to verify within the deadline will render your filing invalid. Experts recommend verifying immediately after submission to avoid missing the deadline.
When You Should Hire a Chartered Accountant
While self-filing works well for individuals with straightforward income, it’s advisable to consult a CA in more complex cases. For example:
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If you have multiple income sources, such as salary, rental income, and business income.
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If you earn from business or professional activities.
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If you have sold property and need to calculate capital gains tax.
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If you have foreign income or overseas investments.
Calculating capital gains, deductions, and taxes in such situations can be tricky, and a professional can ensure accuracy and compliance with tax laws.
Bottom Line
If you are a salaried taxpayer with no complicated investments or multiple income streams, filing your ITR online using the ITR-1 form is both easy and cost-effective. However, for more complex cases involving capital gains, business income, or foreign earnings, professional assistance from a CA can help you avoid errors and ensure your return is filed correctly.
By understanding your financial situation and the complexity of your income sources, you can decide whether self-filing or hiring an expert is the best choice for you.
