The Income Tax Department has launched its site for people to submit their forms, and the process of submitting income tax returns (ITR) for the taxation year 2023–2024 has started. This ITR filing procedure might be difficult at times. Here Apki Return Experts come in handy and pick the right ITR form for your benefit based on your income sources, among other factors.
Importance Of Filing ITR (Income Tax Returns)
To comply with laws, support public services, and obtain tax advantages and credits, income tax returns must be filed. Accurate and timely tax filing also reduces the risk of fines, boosts tax collections and economic stability, and builds public confidence in the tax system—all of which are advantageous to individuals and the general public.
Taxpayers Should Keep In Mind Before Filing The Income Tax Return
Choose the Correct ITR Form
The suitable income tax form in India for you depends on several criteria, including your residency status, expenses, and sources of income. The most crucial decision for each taxpayer is selecting the correct IT Return form.
When an incorrect IT Return form is submitted, the Income Tax department issues a faulty return notice, and in some situations, the return is considered to have never been filed.
Here are some of the common income tax forms :
Form ITR-1 (Sahaj) : You must file this form if your total income surpasses Rs. 50 lakh and comes from a salary, one residential property, and other sources (such as interest income).
Form ITR-2 : if your total income surpasses Rs. 50 lakh and you get income from capital gains, multiple housing properties, salaries, overseas assets, or both.
Form ITR-4 (Sugam) : This form is for use if you have earnings from an alleged company or profession (such as small merchants, freelancers, or professionals).
Old Tax Regime/ New Tax Regime
Deciding to use the old or new tax system is the most important choice a person must make when filing an ITR. Lower tax rates are provided under the new tax system, but under the old system, taxpayers can still save money by taking advantage of tax perks and claiming allowances.
Form 16
Form 16 is a certificate that Indian employers provide to their staff members. It includes information on the employee’s pay and the amount of tax deducted at the source (TDS) for that pay.
Purpose -: The main purpose of Form 16 is to file income tax returns. It is proof that your company has deducted taxes from your pay and deposited the money to the government.
Contents -: Form 16 contains information on you and your employer, as well as your Permanent Account Number (PAN), amount of TDS deducted, data about the deductions allowed by the Income Tax Act, and a summary of your pay for the fiscal year.
Components Of Form 16
Part A -: This section includes information on the employer and employee, including names, residences, PANs, and the employer’s TAN (Tax Deduction and Collection Account Number).
Part B -: This section breaks out the salary, allowances, and deductions made under multiple sections of the income tax law. It also includes the TDS that the company deducts.
Form 26AS
Information on any income received on which a TDS has been applied is included in this crucial document. Information on Form 16 must be cross-checked against information on Form 26AS. The taxpayer can download the form from the portal, and the information is updated when uploading their tax deductions statement (TDS).
Basic Documents Required
Certain things to remember before filing an ITR are listed below.
- Bank account information,
- Form 16
- PAN card
- Aadhaar Card
- Receipts for payments of insurance premiums, and
- Home lone details
- Pay slips
- CTC Breakup (to determine your eligibility for other tax-free income components, such as LTA, HRA, etc.)
- Tax Savings Investment Proofs (TDS) Certificates from Bank (to get deduction under various sections)
- Bank statements (need for interest income, gifts received during the applicable Fiscal Year, and any dividend income)
- Receipts for HRA, LTA costs, and reimbursement slips
Choose the filing method
You have two options for filing: either use the public website of the Income Tax Department or have our Tax Experts file it for you.
- Check out our customized, cost-effective services Apki Return
- Obtain our CA Support (Our knowledgeable CAs help you by submitting the return in the easiest, most convenient way possible.)
Annual Information Statement
The Annual Information Statement (AIS) provides an in-depth review of all the financial activities that a taxpayer has within a given financial year. It contains data on overseas money transfers, interest, dividends, securities, and mutual fund activities. The data from the AIS is automatically included in the return form when a taxpayer chooses to use the prefill option while completing their income tax return.
Penalties for failing to file returns
A person can be entitled to a fine of up to Rs 5,000 for failing to file income tax returns, even in cases when taxes have been paid. Tax returns must also be shown as proof when applying for a loan, buying an expensive insurance policy, preparing to buy property, or taking a trip overseas.
Verification
After the person submits the ITR form, the returns must be verified. Either offline or online ways are available for doing this.
- Online Approach -: A person can finish the procedure by providing their Aadhaar one-time password (OTP). If the taxpayer chooses to complete the verification electronically, the IT team will send them an e-verification email for confirmation.
- Offline Verification -: The taxpayer has to speed post a printout of their ITR to the Centralised Processing Centre (CPC), IT Department, Bangalore.
Keep Records
For individuals and businesses, keeping correct tax records is essential as it guarantees compliance with tax regulations, makes filing taxes easier, and offers a transparent financial history. Taxpayers may effectively check their tax liabilities, claim valid credits and deductions, and answer any questions or inspections from tax authorities by maintaining well-organized and complete records of their income, spending, deductions, and tax payments.
Conclusion
In conclusion, all taxpayers must understand the important factors before submitting income tax forms. Every stage of the process—from obtaining required paperwork to analyzing credits and expenses, from staying up-to-date on tax regulations to keeping accurate records—is essential to guarantee an effortless and constitutional tax filing procedure. Taxpayers can improve their tax savings, prevent fines, and help maintain the stability of the tax system by sticking to these rules.
If you are considering filing an ITR, we are here to help you at Apki Return, Contact us at: +91 766 515 6000
