Important Things To Keep In Mind While Filing ITR

Filing income tax return (ITR) might seem scary initially due to lack of knowledge about the filing process and required documents, in fact over the years now it’s an easy and smooth process if you know what you’re doing. It’s easy to find yourself confused and exhausted, especially if you’re a newbie. Here are some important things to keep in mind while filing ITR:

  1. Using the correct income tax return form

Choosing the right form is the most important thing while filing your income tax return.

 If you furnish your income tax return in the wrong forum, then you may not report the correct and complete information your return. And in that case, the income tax department could serve you a tax notice for understanding your income.

  1. Disclosing income from other sources

Generally, taxpayers believe that their minor incomes aren’t required to be reported in their income tax returns. It’s important to keep in mind that the information is fed regularly from banks and financial institutions to the income tax department about your financial transactions. Any discrepancy could invite a notice from the Income-tax department. 

  1. Reconciling Form 26AS with your income tax return

It’s important to ensure that your income tax return is in sync with the Form 26AS. In case there’s a discrepancy, the income tax department might issue a notice seeking an explanation for the discrepancies between your ITR and Form 26AS.

  1. Disclosing bank accounts

While filing your income tax return, the assessee needs to provide the details of all savings as well as current accounts held by the assessee during the financial year. Failure in furnishing the bank details may end up in issuance of a notice from the income tax department.

  1. Keep proofs of all tax deduction

Ensure that you maintain a proper file for keeping all receipts of payment and proofs of any tax saving investment made, rent paid, deductions claimed or any other tax benefit which you’re claiming in your income tax return. In case there’s any discrepancy in your income tax return, the income tax department you might ask you to provide such proofs.

  1. Furnishing correct personal details

Ensure that your personal details like name, phone number, Aadhaar number, address, date of birth, email id, etc. which you have provided in your income tax return form are correct.

Additionally, if you’re claiming any refund, ensure that the bank account details which you have provided in your income tax return are accurate so that your refund is credited to your account without any issues.

  1. Have all the required documents

Some of the important documents which you would require for the purpose filing the income tax return are Form 16, housing loan certificate, rental agreement, bank statements, tax paid proofs, TDS certificates, proofs for taxes deducted by employer, proof of investment in LIC, NSC, PPF, NPS, Health Insurance, salary slips, Aadhar card and PAN card etc. 

  1. Claim eligible tax deductions

While filing your income tax return, you shouldn’t forget to claim the income tax deduction which could help you in reducing the income tax liability. In case you had invested in made tax-saving instruments under section 80C, 80CCD or paid health insurance premiums under section 80D, you must claim its deduction as it would reduce the tax outgo to the extent as allowable under the act. There are other eligible tax deductions that you should check such deduction under sections 80TTA, 80E, etc.

  1. Know your income tax slab

In India, the income tax slab has been divided into specific categories based on age and income. The income tax is charged on taxpayers based on a slab system where different rates have been set for different. The first set of taxpayers are the ones below 60 years of age with annual gross income over INR 2,50,000. The next category is for the senior citizen below 80 years with income exceeding INR 3,00,000. And the last is for the super senior citizens above 80 years with income exceeding INR 5,00,000.

Income Tax Slab for individuals below 60 and HUF

Income Tax Slab Tax Rate
Up to INR 2,50,000 Nil
INR 2,50,000 to INR 5,00,000 5% of income in excess of INR 2,500,000
INR 5,00,000 – INR 10,00,000 INR 12,500 + 20% of income in excess of INR 5,00,000
Above INR 10,00,000 INR 1,12,500 + 30% of income in excess of INR 10,00,000
It is to be noted that an additional 4% will be charged as health and education on the taxable amount.

Income Tax Slab for Senior Citizens

Income Tax Slab Tax Rate
Up to INR 3,00,000 Nil
INR 3,00,000 to INR 5,00,000 5% of income in excess of INR 3,00,000
INR 5,00,000 – INR 10,00,000 INR 10,000 + 20% of income in excess of INR 5,00,000
Above INR 10,00,000 INR 1,10,000 + 30% of income in excess of INR 10,00,000
It is to be noted that additional 4% will be charged as health and education on the taxable amount.

Income Tax Slab for Super Senior Citizens

Income Tax Slab Tax Rate
Up to INR 5,00,000 Nil
INR 5,00,000 – INR 10,00,000 20% of income in excess of INR 5,00,000
Above INR 10,00,000 INR 1,00,000 + 30% of income in excess of INR 10,00,000
It is to be noted that an additional 4% will be charged as health and education on the taxable amount.

Finally

Please exercise caution at the time of filing the income tax returns online, particularly if you’re filing the income tax returns yourself. Ensure you file your income tax returns well in advance for avoiding any last-minute hassle. It is advisable to reach out to a qualified tax consultant if you find yourself in difficulty. 

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