Income Tax Returns (ITRs), are forms used to declare net tax liability, claim tax deductions, and report gross taxable income. Individuals and entities whose income exceeds the exemption limit set by the Income Tax Department must file an ITR. It is also used as proof of income when applying for loans, visas, or other financial transactions.
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Firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals are required to file an ITR with the Income Tax Department of India. Individual taxpayers have a deadline of July 31 each year, while businesses and other entities have a deadline that varies depending on their category.
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Here are the things to be kept in mind while filing income tax return forms:
– Identify the suitable ITR form (from ITR-1 to ITR-7).
– Check the details, such as PAN, address, e-mail address, bank account information, and so on, are correct in the pre-filled data.
– Download AIS and Form 26AS to determine the actual TDS/TCS/tax paid. If you notice a discrepancy, you should discuss it with your employer/tax deductor/bank.
– Gather and thoroughly examine the documents that will be referred to when filing your ITR, such as bank statements/passbooks, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, and so on.
– Include all relevant information in the return, such as total income, deductions (if any), interest (if any), taxes paid/collected (if any), and so on.
– File your ITR on or before the due date.
– Once all of the details in the return of income have been filled out and confirmed, the return of income can be filed.
– After e-filing, e-verify the return.
How to Check the Status of Income Tax Return?
The status of the Income Tax Return can be checked on the Income Tax Department of India’s official website. Your Permanent Account Number and password are required to check the status. If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by speed post).
Penalty for ITR-filing
If the returns are not filed by the due date, the taxpayer faces penalties. Apart from penalties, the individual may face other inconveniences and consequences. Penalties range from Rs.1,000 to Rs.10,000 if their returns are filed after the due date.
Documents required to file ITR
– Pan card
– Form 26AS
– Form 16A, 16B, 16C
– Salary Pay slips
– Bank statements
– Interest certificates
– TDS certificate
– Proof of tax saving investments