Choosing the Correct ITR Form

You need to choose the right income tax return (ITR) form. If the wrong form is used, the whole process may get delayed, or a notice may be sent.

• ITR-1 is for salaried individuals with the total income up to Rs. 50 lakh.
• ITR-2 is for those individuals who have capital gains, more than one property or foreign income.
• ITR-3 is for those having business or professional income.
• ITR-4 is for those who use the presumptive taxation scheme under sections 44AD or 43DA.

Claiming Deductions Under Chapter VI-A

One of the easiest ways by which you can your lower tax and increase refunds is using all the deductions available:

• Section 80C (limit of Rs. 1.5 lakh): This includes life insurance premiums, Public Provident Fund (PPF), National Savings Certificate (NSC), ELSS mutual funds, the principal part of home loan repayment and also the children’s tuition fees.
• Section 80D: Under this, health insurance premiums can be claimed Rs. 25,000 for self and family while an extra Rs. 50,000 if there are senior citizens in the family.

• Section 80CCD(1B): Up to Rs. 50,000 extra can be claimed for contributions to the National Pension System (NPS) over and above the Rs. 1.5 lakh under 80C.
• Section 80G: In this, donations to specific charities can be claimed either 50% or 100%, it depends on the organization.
• Section 80E: Interest on education loans with no limit can be claimed for up to 8 years.
• Section 80TTA/80TTB: Savings interest up to Rs. 10,000 can be claimed by regular taxpayers and up to Rs. 50,000 by senior citizens.

Using the Salary Structure

Taxpayers can ask also their employers to plan their salary in a way which includes tax friendly components:

• Including allowances like HRA (House Rent Allowance), LTA (Leave Travel Allowance) and food/meal vouchers.
• Submitting rent receipts helps in claiming the HRA deduction.

Using Home Loan Tax Benefits

People paying home loans can claim:

• Up to Rs. 2 lakh per year as a deduction on interest under Section 24(b).
• Principal repayment under Section 80C.
• If it’s your first-time purchasing a home, an extra Rs. 1.5 lakh interest deduction can be claimed under Section 80EEA (if eligible).

Reporting Exempt Income Properly

Even if some income is tax-free, it still needs to be reported:

• Income like agricultural earnings, gifts received, or EPF maturity must be declared.
• There is a section in the ITR form called Schedule EI that needs to be filled carefully to avoid any mismatch with government records.

Checking Form 26AS, AIS and TIS Carefully

Before filing your return you should properly match the income and tax details with the official records:

• Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary) show all the income and TDS details.
• If there is any mismatch between what is declared and what is in these reports could cause delay in refund or even lead to scrutiny.

Filing Early and Verifying on Time

Filing the return early has its own benefits:

• Refunds are usually processed faster when returns are filed earlier.
• After filing, the return must be verified within 30 days this can be done using Aadhaar OTP, net banking or a digital signature.

Including All Bank Interest Income

Sometimes, people forget to add interest earned from banks:

Such as Interest from fixed deposits (FDs), recurring deposits (RDs) and savings accounts must be declared, even if the tax has already been deducted (TDS) by the bank.

Checking Everything before Submitting

Before submitting it is helpful to double-check:

• Compare salary slips with Form 16 and match with bank statements.
• This makes sure that there is nothing left and the chances of refund issues are reduced.

By following these simple steps, a taxpayer can make sure that they are not only filing correctly but also getting the maximum refund they are eligible for.