Filing your Income Tax Return (ITR) might feel stressful, but with some preparation, you can simplify the process. Here’s a simple guide to help you avoid errors and ensure a smooth tax season for the Financial Year 2023-24 (AY 2024-25).
Ensuring timely submission of your income tax returns (ITR) is important. Failure to meet deadlines can result in late fees, penalties, and unnecessary complications. Deadlines are diverse for individuals, businesses, and companies.
Here are some simple do’s and don’ts to keep in mind before filing your ITR returns.
Choosing the Right ITR Form
- ITR 1: For salaried individuals with total income under Rs 50 lakh, owning a house property, earning interest, and having agricultural income below Rs 5 lakhs.
- ITR 2: For salaried individuals with income over Rs 50 lakh, including additional income from capital gains, rental income, unlisted shares, foreign incomes, and crypto transactions.
Filing the wrong ITR form can render your return defective, possibly resulting in a tax notice to file a revised return.
Check Form 16 and Form 26AS Information
Download Form 26AS and the Annual Information Statement from the I-T department’s e-filing portal. Compare details to avoid discrepancies.
Reporting All Sources of Income
Include interest from savings accounts, gains from stock or crypto sales, mutual fund unit sales, and any foreign assets or unlisted shares.
Declaration of Previous Employers’ Income
In case of a job switch, you’ll receive Form 16 from each employer. Disclose income from both to prevent discrepancies that may trigger notices.
Avoiding Ineligible Deductions
Do not claim deductions you’re not eligible for, such as house rent allowance exemptions without actually paying rent.
Preventing Tax Notices and Penalties
Ensure full disclosure of all incomes and avoid claiming ineligible deductions to prevent tax notices or higher penalties.
Also Read: Form 16 Deadline 2024: When to Expect TDS Certificate from Employer For ITR Filing
Seeking Professional Help
If the process seems complex, consider consulting a tax professional to simplify it.
Updating Bank Account Details
Provide current bank account details for timely disbursement of tax refunds.
Completing E-Verification
Remember to e-verify your ITR within 30 days of filing on the IT portal. This step is crucial as the filing process is not complete until e-verification is done, and the date of e-verification is considered the start date of filing your returns.
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