4 Tips to File Your Income Tax Returns on Your Own
Adherence to tax compliance in India is one’s highest form of financial wisdom. Income Tax collection plays a vital role in the development of the Indian Economy and Infrastructure. Due to the connection between taxpayers and the growth of the country our Government had come up with a system that is smoothly accessible for the taxpayers. The Total Income Tax Returned filed during A.Y. 2022-2023 is about 5.83 Crores,
The income tax portal or the e-filing website is managed by the Income tax department. And the portal undergoes various changes for updating the interface of the website. Many of us can also file an income tax return without the help of experts, but if the sources of income are more and you have business income it is better to hire the experts for guidance.
Key points for Income Tax Return (ITR) filing
We always want hassle-free tax filing and for that, we need to keep the following points into consideration:
1. Selection of Correct form of ITR:
The most important part of filing an ITR is choosing the appropriate form according to the income source of the individual/ firm/ company. The person filing ITR should have adequate knowledge about the following forms and when the ITR is filed.
- ITR 1
For residents having income from salary, other sources of income, and one house property. The income does not exceed ₹ 50 lacs.
- ITR 2
For residents having an income of more than ₹ 50 lacs and do not fall in ITR 1. Having capital gain income and holding two or more house properties. This form is applicable for residents who hold unlisted equity shares or directorship in a company.
- ITR 3
Income as per ITR 2 and income on a presumptive basis exceeding ₹ 50 lacs. A partner’s income in a firm or income from a Business/ profession is also considered.
- ITR 4
Presumptive income exceeding ₹ 50 lacs and other income mentioned in ITR 1.
- ITR 5
Applicable to firms, LLP, AOPs and BOIs.
- ITR 6
For companies not claiming exemption under section 11 mentioned in Income Tax Act.
- ITR 7
For Person/Companies to whom section 139 (4A/4B/4C/4D) is applicable.
2. Assembling the adequate documents:
The next big step in filing ITR is gathering the documents which will be helpful to fill the information on the portal. The registration process would need the documents that confirm the personal details of the assessee. Further information that approves the income of the assessee would be needed in filing the ITR. Examples of such documents are Adhaar card, PAN card, Bank details, etc. Some of the documents which would be vital for ITR filing are given below:
- Form 16
- Bank Statement
- Interest certificate from bank
- Housing loan and other loan statements, if any
- Deduction details
- Profit and Loss statement of Demat Account, if any
- 26AS and Annual Information Statement (AIS)
- Details of tax challan paid if any
- Receipt of donation made if any
- Details of other income
Other than these, the expert filing ITR can also ask about various other details as per the income of the assessee.
3. Timely filing
The next thing to remember is the time limits of filing ITR based on the category of the individual or firm or company. Especially the ITR due dates vary based upon the applicability of Tax Audit on the assessee. One must know about his eligibility and due date to file ITR.
- 31st July for Individual / HUF/ AOP/ BOI whose books of accounts are not required to be audited.
- 31st October for Businesses who Requires to get their books of accounts to get Audited.
- 30th November for the Businesses requiring Transfer Pricing report.
These due dates are subject to due date extensions and changes made by the Government in the future.
The consequences of late filing of ITR can be penalties and extinguishment of certain benefits available at the time of filing ITR. If a person whose gross total income does not exceed the basic exemption limit, files a belated ITR, then he/she will not be liable to pay a penalty for late filing.
4. Uniformity of information
The AIS system auto-populates the income that is received by the income tax department, these incomes involve dividend income, salary received (TDS deducted), bank Interest on saving bank, etc.
While filing ITR the correspondence of SFT and AIS should be taken, so that there is no dissimilarity between them both and that errors do not occur while filing.
If you are looking for assistance in filing your income tax returns, do contact us to get hassle free assistance from our experts.
Author : Aditi
Date : 06-Sep-2022