Pre-Filing Checklist: Essential Points for Your Income Tax Return
Filing your income tax return (ITR) accurately and on time is crucial to comply with tax regulations and avoid penalties. Before submitting your return, it’s essential to ensure that you’ve taken care of certain key points to streamline the process and minimize errors. Here are some important considerations to keep in mind before filing your ITR:
Before filing your income tax return (ITR), there are several important points to consider:
- Gather all necessary documents: Collect all relevant documents such as Form 16 (for salaried individuals), Form 16A (for income from other sources), bank statements, investment proofs, and any other documents related to your income, expenses, and investments.
- Choose the correct ITR form: Select the appropriate ITR form based on your sources of income and other relevant factors. There are different forms for salaried individuals, business owners, freelancers, and others. Using the correct form ensures accurate reporting.
- Report all income: Ensure that you report all sources of income, including salary, income from house property, capital gains, interest income, and any other income earned during the financial year. Failure to report all income could lead to penalties.
- Claim deductions: Take advantage of available deductions under various sections of the Income Tax Act such as Section 80C (for investments in LIC, PPF, etc.), Section 80D (for health insurance premiums), and others. Make sure to keep proper records and receipts for all deductions claimed.
- Verify Form 26AS: Verify Form 26AS to ensure that the TDS (Tax Deducted at Source) details mentioned in your Form 16/Form 16A match with the details available in Form 26AS. Any discrepancies should be rectified before filing the return.
- Check AIS / TIS: AIS provides taxpayers with a summary of income-related information collected by tax authorities, while TIS is the digital platform or system used by taxpayers to file their income tax returns and interact with tax authorities.
- Check for carry-forward losses: If you have incurred any losses in previous years, ensure that you have properly carried them forward and claimed them in the current year, if applicable.
- Review tax-saving investments: Review your tax-saving investments and contributions to ensure that you have maximized your tax savings for the year.
- File on time: Ensure that you file your ITR before the due date to avoid penalties and interest. The due date for filing ITR varies depending on the type of taxpayer and the sources of income.
- Keep records: Maintain proper records of all financial transactions, investments, and expenses to support the information provided in your ITR in case of any future scrutiny by the tax authorities.
- Review before submission: Before submitting your ITR, review all the details carefully to ensure accuracy and completeness. Once submitted, it may be difficult to make changes later.
- E-verify your return: After filing your return online, don’t forget to verify it using Aadhaar OTP, net banking, or other available methods to complete the filing process.