The filing of income tax returns for the financial year 2023-24 has begun, and the Income Tax Department has opened its site for people to submit their forms. For first-time filers, the ITR filing process might be complex.
Reetu | Jun 30, 2023 |
ITR Filing: 10 Things to keep in mind before filing your Tax Return
The filing of Income Tax Returns (ITR) for the financial year 2023-24 has begun, and the Income Tax Department has opened its site for people to submit their forms. For first-time filers, the ITR filing process might be complex. Although the process of e-filing ITR has become quick and simple, and can be accomplished from the comfort of one’s own home.
The following is a list of ten things that first-time taxpayers should keep in mind while filing their ITR:-
Individuals’ taxable income is the amount of income that is liable to tax after deducting permitted expenses and tax-saving deductions from their gross income.
Form 16 is a TDS certificate issued by an employer to salaried employees. This form contains all of the salary information that must be recorded when submitting income tax returns. It includes information on the deductions you’ve claimed, your pay, and the exemptions you’ve received.
It is a vital document that includes information on all income earned on which a TDS has been deducted. The information on Form 16 should be cross-checked with the information on Form 26AS. The form is available for download through the portal, and the information is updated when the taxpayer submits their TDS return statement.
Perhaps the most crucial choice for new taxpayers will be whether they want to choose the new or old tax regime. While the new tax system provides lower tax rates, the old regime provides various deductions and tax perks that allow a taxpayer to save tax.
A choice has to be made and one method to do so is to use one of the online tax calculators to determine which regime will result in a lower tax liability. Salaried taxpayers have the option of switching to a more advantageous tax system when filing their tax returns.
This, however, is not possible for people who earn income via a business. If the taxpayer opts for the new tax regime (the default regime if you forget to notify your employer), he must still examine investments such as EPF, PPF, and life insurance.
The Annual Information Statement (AIS) is a detailed breakdown of a taxpayer’s financial transactions for the financial year. It contains data on interest, dividends, securities transactions, mutual fund transactions, and international remittances. while a taxpayer utilises the prefill option while completing their income tax return, the AIS information is automatically filled in on the return form.
Taxpayers should be aware that the deadline for submitting income tax returns is July 31st of each financial year.
Taxpayers must select one of four categories:-
ITR-1
This form is for resident individuals with income from salary, one house property, and other sources (such as interest and dividends) totaling up to Rs 50 lakh.
ITR-2
This form is for individuals and Hindu Undivided Families (HUFs) who do not earn a living through a company or profession.
ITR-3
Individuals and HUFs with income from a proprietary company or profession should use this form.
ITR-4
Individuals and HUFs with presumed income from business or profession should use this form.
The following documents are required when filing the ITR form:-
The final step after completing your ITR is to verify your returns. You can either verify your return online or offline. You may obtain the information online by using the Aadhaar OTP. The IT department will send you an e-verification email to validate the verification using online electronic means. You must transmit the signed printout of the ITR to CPC, Bengaluru, for offline mode. Beginning August 1, 2022, the income tax department has lowered the time limit for e-verification or hard copy submission of the ITR-V, post-filing of returns by taxpayers to 30 days.
Even if the taxes have been paid, failing to file income tax returns can result in a Rs 5,000 penalty for an individual. Furthermore, displaying tax returns as proof is required when applying for a loan, acquiring real estate, traveling overseas, or obtaining a large insurance policy.
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