Here are a few important things that first-time taxpayers should know before filing their ITR
The last date for filing an Income Tax Return (ITR) for the financial year 2022-23 (Assessment Year 2023-24) is July 31.
It is advisable to file the ITR before the due date to avoid any last-minute rush. These days, the process of e-file ITR has become easy, and quick, and can be done from the comfort of your home. But sometimes the process of filing an ITR can be a difficult procedure, particularly for first-time filers.
Here are a few important things that first-time taxpayers should know before filing their ITR:
1. Collect Form 16: Form 16 is a Tax Deducted at Source (TDS) certificate given to salaried individuals by an employer. This form contains all the salary information that must be recorded when submitting income tax returns. It includes details on the exemptions you have taken advantage of, your pay and the deduction you have claimed.
2. Get to know your total taxable income: Your taxable income is your gross income (received from your salary and other sources) minus the tax-saving deductions.
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3. Check which tax regime to opt for: Choosing between the new tax regime or the old tax regime can likely be the most crucial decision for new taxpayers. Even if the new tax regime has lower tax rates, there are still several tax deductions and perks under the old regime that allow a taxpayer to save money.
4. Essential documents required while filing ITR: There are a certain set of documents that are required to be submitted which is – a PAN card, Aadhaar card details, bank account details, Form 16 for salaried individuals, investment proofs, home loan interest certificate and Insurance premium payment receipts.
5. Check which ITR form to file: The Income Tax Department offers different types of ITR forms, we have listed a few below:
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ITR-1: It is for those who earn money through salary, one residential property, and other sources (like interest) with a maximum annual income of Rs 50 lakh.
ITR-2: This is for individuals and Hindu Undivided Families (HUF) who do not operate their businesses or profession as a sole proprietorship.
ITR-3: It is for people and HUF who make money via private industry or occupation.ITR-4: For presumptive income from profession or business.
Taxpayers are requested to check the official site of the income tax department at https://www.incometax.gov.in/iec/foportal/ for more details. It is also recommended to seek the assistance of a professional for any queries or clarifications.
