Many individuals procrastinate when it comes to filing their income tax returns, especially those who are filing their tax returns for the first time. All individual taxpayers having a total income of more than Rs. 2.5 lakh (Rs. 3 lakh for senior citizens and Rs. 5 lakh for super senior citizens) are required to file the income tax returns on or before the due date. Even if it is not mandatory for you, filing a "Nil Return" can help you set things on the record. The following are some of the tips to ensure that you are filing your tax return efficiently and in a hassle-free manner.
Have your PAN and Aadhaar card ready
First, ensure that you have your PAN and Aadhaar card handy to enter the details while filing the ITR. You will also need to quote your date of birth and father's name the same as that mentioned in the PAN card. Moreover, if you have not applied for an Aadhaar card yet, make sure you do that before filing your income tax return.
Collect Form 16
Form 16 makes it easier for you to file the income tax return as it contains most of the important information. Generally, an employer provides it to each employee by May 31st of every year. If you have worked for more than one employer during a financial year, you need to get Form 16 from every employer.
Get your bank statement
It is compulsory to mention your bank account details when filing your income tax return. Additionally, having your bank statements handy helps you to mention the total interest amount accumulated in a financial year (April 1 to March 31) from your savings account. Under section 80TTA, savings bank interest up to Rs. 10,000 can be claimed as a tax deduction.
Use Form 26AS
Form 26AS shows details of tax credit on your PAN like tax deducted at source (TDS), Tax collected at sources (TCS) on your income like from fixed deposit, commission, salary, etc. and taxes deposited by the assessee. As the tax is already deducted from your income, you can adjust the TDS from the total tax that you are liable to pay. Most importantly, make sure that to include the details of the corresponding income on which tax is deducted in your income tax return. Because, if you claim TDS and do not include the related income, you could get a tax notice.
Gather proof of investments
For some reason, if you were not able to declare investments to your employer or provide the required proofs, such deductions will also not appear in your Form 16. You can claim tax deductions for any eligible investments made before the end of the financial year, reducing your total taxable income to that extent. Hence, make sure to include all such investments at the time of filing your income tax return.
Get details of your assets
If your taxable income exceeds Rs. 50 lakh after claiming all the deductions, you will need to mention some additional information in your income tax return. Some of the additional declarations that you need to make include the value of movable and immovable assets, cash in hand, jewellery, and liabilities (if any). You will need to mention these details in Schedule AL in your income tax return.
Filing your income tax return does not only make you financially responsible, but it also helps you determine whether you are moving towards achieving your financial goals. By filing your ITR on time, you can also take advantage of tax-saving investments and avoid a penalty for late filing of income tax returns. Moreover, it gives a clear picture of your total income that you earned in a financial year.
Get your Income Tax Returns filed the right way.
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