“Unravel the essentials of filing an Income Tax Return (ITR) with crucial tips: document preparation, correct form selection, income declaration, deduction claims, and timely filing. E-verify your ITR for a hassle-free process.”
What is ITR
ITR stands for Income Tax Return, which is a document or form used by taxpayers to report their income, deductions, and tax liabilities to the government. An income tax return needs to be filed by individuals, businesses, and other entities with taxable income for a particular financial year.
The Income Tax Act, 1961, mandates that taxpayers must file their income tax return every year by a specific due date, which is usually July 31st for individuals and September 30th for businesses in India. The tax return form used for filing the income tax return depends on the type of taxpayer, their income, and the sources of their income.
Things to remember while filing an ITR
Filing Income Tax Return (ITR) is an essential responsibility of every taxpayer. Here are some things to remember while filing an ITR:
- Gather all necessary documents: Before filing ITR, ensure that you have all the necessary documents like PAN card, Aadhaar card, Form 16, bank statements, TDS certificates, and investment proof, etc.
- Choose the correct form: There are different types of ITR forms available depending on the source of income. Choose the correct ITR form that suits your income source.
- Verify Form 26AS: Verify Form 26AS before filing ITR. It is a consolidated tax statement that shows the taxes paid on your behalf.
- Declare all sources of income: Ensure to declare all the sources of income, including interest, rental income, capital gains, etc.
- Claim deductions: Don’t forget to claim deductions under various sections like Section 80C, Section 80D, etc. as it can reduce your tax liability.
- Recheck details: Before submitting the ITR, recheck all the details like name, PAN, address, bank details, and other information mentioned in the form.
- File within the deadline: The deadline for filing ITR is 31st July of every financial year. Ensure to file ITR before the deadline to avoid any penalty or late fee.
- E-Verify ITR: Once you file the ITR, ensure to verify it within 120 days of filing. You can e-verify ITR using Aadhaar OTP, Netbanking, or Electronic Verification Code (EVC).
- Keep a copy: Always keep a copy of the ITR form submitted and the acknowledgment receipt received for future reference.
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The author is an Income Tax and GST Practisioner and can be contacted at 9024915488.
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