You will need to fill up ITR-2 if you, as a salaried individual, have made any capital gains. This form is filled in the same way as ITR-1. In addition, you will have to fill in income, if any, from house property and other sources.
How to file
The actual filing of the return can be done either by using the traditional paper form or electronically, over the Internet. The second, known as e-filing, is fast catching up. The digital method is compulsory for companies, but still optional for salaried individuals. However, it may well become compulsory for individuals with a certain level of income in times to come. So, it may not be a bad idea to familiarize yourself with this process.
Before you start filing the return, check if you would be getting a refund from the I-T department or have to pay tax. In case of the latter, even before starting the filing process, you should first get hold of Form 280, fill it and deposit it in any bank along with the tax payable in cash or cheque. You can also pay tax through Internet banking. In both cases, you will get a receipt number which has to be quoted in the ITR form.
Doing it offline
There are two options—you may either submit the ITR form at the nearest income-tax office (ITO) after filling it up yourself, or you may get a chartered accountant (CA) or a tax return preparer to do it for you. Try to visit the ITO well before the last date for filing returns—the crowd increase as 31 July draws near. You may also take help from the public relations officer of the ITO to fill the form. No documents or investment proofs need to be attached with the form, but remember to bring photocopies or originals with you to the ITO. These will come in handy if you are asked to authenticate the math.
The fee of a CA would depend on your income slab and the number of income sources. Typically, it would range from Rs300 to Rs2,000, depending on the complexities involved. One good thing about filing through a CA is that it would bring down the margin of error to nil. Also, depending on the acumen of the CA, which often gets reflected in the quality of his practice, he would suggest some tax-saving ways to you.
Doing it online
E-filing is done through websites authorized by the I-T department to file taxes on your behalf. To e-file, you will have to input the details of Form 16 in the software of the website, which would automatically generate an electronic return in XML format. This format helps in sharing structured data across different information systems. A PDF file of the relevant ITR form is also created along with the XML format. You can download this ITR form, submit it at the ITO and get an acknowledgement.