Introduction:
ITR filing can be a daunting task, especially when it comes to selecting the correct ITR form and ensuring accurate reporting of income and deductions. This article provides a comprehensive guide to help individuals in India navigate the ITR filing process smoothly and avoid common mistakes.
Identifying the Correct ITR Form for ITR filing:
The first step is determining the appropriate ITR form based on your tax situation. For AY 2023-24, ITR-1 or Sahaj is suitable for resident individuals with income from salary, one house property, and other sources (excluding specific cases). ITR-2 is applicable to individuals or HUFs with income from multiple properties, capital gains, foreign income/assets, and other sources.
Reviewing Form 16 Thoroughly:
Carefully review Form 16, which is issued by your employer and contains details of salary income and tax deductions. Compare it with Form 26AS and ensure that all deductions, including self-occupied house property interest and NPS deductions, are accurately reflected.
Incorporating All Other Incomes:
Account for all additional sources of income such as bank interest, fixed deposit interest, capital gains, rental income, and income from shares. Verify that these incomes are correctly included in your ITR.
Downloading and Checking Form 26AS, AIS, and TIS:
Download and review Form 26AS, which displays tax credits for the income deducted by your employer. Cross-verify entries in Annual Information Statement (AIS) and Tax Information Statement (TIS) to ensure they match your financial transactions. Disregard any entries that don’t belong to you and report any unlisted income in your ITR.
Validating All Deductions:
Thoroughly validate all deductions against supporting documents. In some cases, deductions may not appear in Form 16, but you can claim them while filing your ITR. Avoid reporting false deductions that were not made during the financial year.
Choosing Between the New and Old Tax Regime:
Consider the option of the new tax regime introduced in Budget 2020, which offers lower tax rates but eliminates certain exemptions and deductions. Compare the tax liability under both regimes and choose the one that suits your financial situation.
Avoiding Hastened ITR Filing:
Take your time to prepare your ITR and avoid rushing through the process. Hasty filing can lead to errors and potential notices from the Income Tax Department. Consult a tax professional if you have any doubts or questions.
Conclusion:
By following these precautions and guidelines, you can file your income tax returns accurately and seamlessly. Remember, filing taxes is not just a legal obligation but also a contribution to the nation’s development.
Kartik M Jain and Associates,Chartered Accountants is a practicing CA in Pune is a professionally managed firm serving domestic and international clients providing services relating to direct and international taxation, indirect taxation, auditing and assurance and Consultancy. With a team of expert and experienced Professionals, The firm aims to provide quality and effective services. The firm provides complete end to end solutions to your complete business needs under one roof.
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