As the fiscal year draws to a close, taxpayers in India prepare for the annual task of filing their Income Tax Returns (ITR). With the onset of the reporting period for Assessment Year 2024-25, it’s crucial for individuals and entities to ensure compliance with tax regulations and meet their obligations to the government. This year introduces new updates and guidelines for taxpayers, necessitating a thorough understanding of the process.
Filing of ITR for A.Y. 2024-25 Begins: What you need to know
Introduction
As the financial year comes to end, taxpayers in India are gearing up for the annual ritual of filing their Income Tax Return (ITR). With the commencement of the reporting period for Assessment Year 2024-25 (F.Y. 2023-24), the time has come for individuals and entities to ensure tax compliance and fulfill their obligations to the government. This year, like every year, brings its own set of updates and guidance for taxpayers.
Understanding the assessment year and submission process
Before delving into the specifics of this year’s filing, it is essential to understand the concept of Assessment Year (A.Y.). is the year following the Financial Year (F.Y.) in which the income is earned and taxes are calculated on that income. For example, for income earned between 1 April 2023 and 31 March 2024 (FR 2023–24), the corresponding year of assessment will be 2024–25.
The Income Tax Department of India provides various forms catering to different types of taxpayers, from individuals to businesses. Each form is designed to capture specific details of income, deductions and taxes paid during the financial year. Taxpayers must choose the appropriate form based on their income and file the return accordingly.
Filing an Income Tax Return (ITR) in India involves several steps, from collecting the necessary documents to filing the return through the appropriate channels. Here is a comprehensive guide to the process:
Step 1: Gather the documents
Before starting the submission process, make sure you have the following documents and information ready:
PAN (Permanent Account Number)
Form 16: Provided by your employer, it summarizes your salary income, tax deductions and TDS (tax deducted at source) details.
Bank Statements: Reflecting interest earned on savings accounts, fixed deposits, etc.
Evidence of investments: such as income from insurance premiums, investments in mutual funds, contributions to pension funds, etc.
Details of other sources of income: If possible, collect information about income from property, capital gains, business or profession, etc.
Details of Deductions: Under various sections of Income Tax Act like 80C, 80D, 80G etc.
Aadhaar Card Number
Bank Account Details: Including Account Number, IFSC Code etc.
Step 2: Select the correct ITR form
Select the appropriate ITR form based on your sources of income, residential status and eligibility criteria. Commonly used forms include:
ITR-1 (Sahaj): For individuals having income from salary, property of one house, other sources (except income from lotteries and income from horse racing) and total income up to Rs. 50 lakhs.
ITR-2: For Individuals and HUFs who do not have income from profits and gains from business or profession.
ITR-3: For Individuals and HUFs with income from profits and gains from business or profession.
ITR-4 (Sugam): For Individuals, HUFs and Firms (other than LLPs) having presumptive income from business and profession.
Step 3: Fill out the form
Once you have selected the appropriate form, fill in the required information exactly. Enter information regarding your income, deductions, tax payments, and other relevant data.
Step 4: Calculate the tax liability
After completing the form, calculate your total taxable income and tax liability based on the applicable tax rates. Deduct any TDS already deposited by your employer or other deductions.
Step 5: Claim your deductions
Make sure you claim all the eligible deductions under various sections of the Income Tax Act to reduce your taxable income. Common deductions include deductions under Section 80C (like investment in PPF, NSC, ELSS, etc.), Section 80D (health insurance premium), Section 80G (gifts), etc.
Step 6: Verify the details
Before sending the return, double-check the correctness and completeness of all the data entered in the form. Make sure there are no errors or inconsistencies that could lead to rejection or review.
Step 7: Submit the return
Once you have verified all the details, proceed to file your return. You can submit your return in one of the following ways:
Online Filing: Visit the e-filing website of the tax department (https://www.incometaxindiaefiling.gov.in/) and login or register as a new user. Fill in the required details, upload your ITR form and submit the return electronically.
Offline Filing: Download the relevant ITR form from the Income Tax Department website, fill it offline, generate the XML file and then upload the XML file to the e-filing portal.
Step 8: E-Verify the return
After filing the return, it is necessary to verify it to complete the filing process. You can electronically verify your return using methods like Aadhaar OTP, Internet Banking, Electronic Verification Code (EVC) or sending a signed physical copy to the Centralized Processing Center (CPC) within the stipulated time frame.
By following these steps carefully and ensuring compliance with tax regulations, you can file income tax returns and meet your tax obligations in India without any hassle.
Conclusion
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