Income Tax Return Filing: It’s the time of the year when taxpayers rush to file their income tax return or ITR. While filing return is an important responsibility, it is absolute necessary to do it accurately and within the stipulated deadline. But the entire process of filing ITR can be intimidating, especially for first-time filers. In this article we talk about all the ITR forms, deadlines and how to avoid the penalties and notices —
Income Tax Return Filing: Collect necessary documents
Before starting the process of filing your ITR, you should collect all the necessary documents. These would include Form 16, bank statements, investment documents, and other supporting documents that are relevant to your income and expenses.
Income Tax Return Filing: Choose the correct ITR form
There are different ITR forms for different categories of taxpayers. And you must select the correct form based on your income sources and type of business.
For instance, if you are a salaried individual, you can file your income tax return using ITR Form 1.
But, if you have both salaried income and capital gains from investments, then you should opt for ITR Form 2.
And, if you are self-employed with business profits as your income source, then you should file your returns using ITR Form 3.
Remember that filing the wrong form can lead to rejection of your ITR.
Read More: Income Tax Return: 5 changes you should keep in mind while filing ITR in 2023
Income Tax Return Filing: Verify your personal information
Before filing your ITR, you must ensure that your name, PAN number, bank account details and personal information are correct and up-to-date. Any discrepancy in personal information can also result in rejection of your Income Tax return.
Income Tax Return Filing: Declare all your sources of income
While filing your ITR, you must declare all your sources of income. This would include salary, rental income, capital gains, and income from other sources. Failing to declare these can attract penalties and legal consequences.
Income Tax Return Filing: Claim deductions and exemptions
The income tax laws allow several deductions and exemptions that can help reduce your tax liability. And, you must collect all supporting documents to claim all the deductions and exemptions that you are eligible for.
Read More: Income Tax AIS App: Step-By-Step Guide To Know TDS, TCS And Other Details On Mobile
Income Tax Return Filing: File your ITR on time
For individuals, the last date for filing ITR in India is usually 31st July. Failing to file your ITR on time can attract penalties and interest on the tax amount due. And, in case you have any tax liability after claiming deductions and deducting TDS, then ensure that you pay the tax amount due before the deadline. Delay in paying the taxes can result in penalties and interest charges.
Income Tax Return Filing: Check your ITR before submission
Read your ITR thoroughly before submitting. Double-check all the information and calculations to ensure accuracy. It is very common to miss a decimal here and a zero there. But any error and discrepancies in the ITR can lead to rejection or scrutiny by the income tax department.
Income Tax Return Filing: Keep copies of your ITR
And once you’ve filed your ITR, you only have one essential thing left to do. You must keep copies of the filed return, acknowledgement receipt, and other supporting documents for future reference. These documents may be required in case of scrutiny or to respond to any notice from the income tax department.
Follow these steps to ensure that the Income Tax Return is accurate, compliant with the tax laws, and filed on time. And take professional help from a tax consultant or chartered accountant in case there are any douts regarding ITR filing and tax laws.
