How can I transfer my iphone music to my itunes library?

Apple allows you to transfer only purchases made within the store unless you leverage an external software. Many exist, the best I found was CopyTrans which moved my entire iPhone library to iTunes for $20ish.

Again, you can transfer for free providing that you're okay to delete content you did not directly buy from iTunes (any CDs you burned into the library, etc.).

Do I open iTunes on my phone or on my laptop/Pc and is it iTunes Store or my music??

so is there any actual solution to this problem now?

See my post just above yours.

tt2

Thanks i saw your post but i don't want to pay for any software

Start with the last entry in the table. Free tools to get access to the file system and the media, and above that two free scripts that can extract ratings and playlists.

tt2