Timely income tax payments prevent any penal actions and help in easy loan processing. Make sure to report all sources of income.
For all earning individuals, July 31 is the last date to file income tax (IT) returns for the financial year 2021-22 and assessment year 2022-23. Those who haven't filed the IT return yet should start assembling all earnings and investment-related documents.
Early filing saves you from last minute hassles. Timely IT payments prevent any penal actions, and help in easy loan processing. It will also help in faster processing of tax refunds. Besides, tax assessment documents also serve as an address proof.
Here are some of the things to keep in mind before filing income tax returns
Be aware of the changes in tax slabs. Also, decide to go with one tax regime -- new or old -- before filing the return. The new regime calculates tax at a lower slab rate but the taxpayer is made to forgo various deductions and exemptions available under the old regime.
To make the filing of returns easy, the IT department provides pre-filled forms. It is advisable to sit with all your related documents while filling the pre-filled form so that you are able to cross-check every field. This is especially important if you have multiple bank accounts and several investments.
Common errors to avoid while filing Income Tax Return online
Make sure that you are reporting all sources of income. This would help you avoid any penal provisions.
Be aware of a few important terms before filing ITR. For instance, Form 16 and Form 26AS. While Form 16 is a certificate issued by your employer detailing the salary you have earned during the year and the TDS that was deducted, Form 26AS is a statement of taxes deducted on your behalf and taxes paid by you in a financial year.
Compare tax deducted in both Form 16 and 26AS while filing your income tax return. If the TDS amount in Form 16 and 26AS is not the same, reach out to the employer and get it rectified.
If you forgot to declare a tax saving investment or rental proof to the employer and the tax amount has been deducted, claim refunds under the old tax regime by submitting all the valid documents.
Make sure to e-verify the return after filing your income tax as the process is not complete until you verify the ITR. One can do it online or by mail the duly signed ITR-V by post.
(Edited by : Sudarsanan Mani)
First Published: IST