ITR filing applicability
If your income exceeds the basic exemption limit of Rs 2,50,000 then you must compulsorily file your IT return. Even if no TDS has been deducted on the income and you are benefitted by rebate provisions still ITR filing is compulsory.
ITR form selection
There are various ITR forms on the income tax portal, so based on your income type correct selection of ITR form needs to be done.
Analysis of tax regime
For selection of tax regime, tax payable under both the tax regimes needs to be worked out. The regime which reflects minimum tax payable amount needs to be opted.
Selection of tax regime
The final selection of tax regime is at the time of income tax return filing in spite of the what the taxpayer has selected during the tax declarations.
Total income to be considered
Income tax return needs to be filed considering your total income earned from all sources. So income taxable under the head salary, house property, capital gains, business/profession, other sources needs to be considered.
Investment proofs
If the taxpayer has opted old tax regime, then tax investments should be done before the end of said financial year i.e. before 31st March and documentary proof of such investments needs to be maintained.
Form 16
If you are a salaried person, then you should refer Form 16 for taxable salary amount.
Books of Accounts
If you run a business/profession then there should be proper accounting for the year. There must be correct disclosure of amounts of income, expense, asset and liabilities.
Turnover reconciliation
If GST is applicable to you, then turnover as reported in GST returns and turnover as reported in income tax return must be matched and reconciled.
Form 26AS, TIS and AIS
While calculating your income for the year, one must refer Form 26AS, TIS and AIS statement. Cross verification of income reported by you and income as reflecting on income tax portal must be done. TDS, TCS and Advance taxes paid should be checked and considered.
Capital gain statement
If you are engaged in sale purchase transactions of equity shares/mutual funds then capital gain statement for the year needs to be considered. The nature of gain/loss i.e. long term/short term and its taxability needs be evaluated.
Exempt Income
It is also important to report your exempt income e.g. PPF interest, Gift received etc.
Payment of taxes
After final calculations if there is tax payable then one must pay the tax amount and then proceed for submission.
Details of bank accounts
In the ITR form one must disclose details of all bank accounts i.e. Bank name, Bank account number and IFSC code. Also from the bank accounts list, the preference of bank account in which one want to receive tax refund needs to be selected.
Directorship disclosure
Information about being a Director in Indian or foreign companies also needs to be disclosed.
Unlisted equity shares disclosure
Information about investment in unlisted equity shares needs be given.
Foreign Assets disclosure
If you own any Foreign assets then details of such assets needs to be given.
Assets and Liabilities disclosure
If your income exceeds Rs 50 Lakhs then it is mandatory to fill the Schedule of Assets and Liabilities. Details of building, land, movable assets, bank deposits, cash etc., with address and amount needs be given.
Avoid Late fees and Interest
Income tax return must be filed within the due date. Failing to file the ITR within due dates attracts late fees and interest provisions. Also if we have business losses, loss on shares/mutual funds then in such cases the ITR must be filed within the due dates,. If you fail to file such loss return on time then you would have to forgo such losses.
Verification of ITR
After ITR submission if you are opting for e-verification of ITR, then options like Aadhar OTP, Net banking, Bank EVC, Demat account., needs to be up to date. Verification of ITR by online or offline mode must be completed within 30 days. If this is not completed within the deadline then the ITR turns invalid.
Summary:
All of the above points are like a checklist. For easy and accurate filing of income tax returns one must consider them. If any discrepancy is there in the income tax return then there are high chances that you may receive an income tax notice. Every year ITR filing is an important task and no one should skip it. There are many benefits of filing ITR. If you find the ITR filing process tricky then you can always take help of a tax expert.
Excellent compilation of all the information needed to file ITR. Crisp and to-the-point. Thanks for sharing.
Thank you for the appreciation. It means a lot.