Gather All Necessary Documents:
Collect all relevant documents such as Form 16 (provided by your employer), bank statements, investment proofs, rent receipts, and any other documents related to your income, deductions, and expenses.
Verify Your Form 26AS:
Form 26AS is a consolidated tax statement that shows the taxes deducted on your behalf by employers, banks, or any other deductors. Verify that the details in Form 26AS match the information you have. This will help avoid any discrepancies in your ITR.
Understand The Applicable ITR form:
There are different ITR forms available for different types of taxpayers and sources of income. Make sure you choose the correct ITR form that suits your income sources and category of taxpayer (individual, HUF, company, etc.).
For more information: click here
Compute Your Taxable Income Accurately:
Calculate your total income by considering all sources, including salary, interest, rental income, capital gains, and any other applicable income. Deduct eligible deductions such as investments, medical expenses, and allowances to arrive at your taxable income.
Claim All Eligible Deductions And Exemptions:
Take advantage of various deductions and exemptions available under the Income Tax Act. Some common deductions include those for investments in tax-saving instruments like Provident Fund (PF), Public Provident Fund (PPF), National Pension Scheme (NPS), and deductions for medical insurance premiums, education loan interest, etc.
Reconcile TDS And Advance Tax Payments:
Ensure that the tax deducted at source (TDS) from your salary, interest income, or any other income matches the details in your Form 16/Form 16A. Also, verify if you have paid any advance tax during the financial year. The TDS and advance tax payments should be appropriately reflected in your ITR.
Report All Bank Accounts And Foreign Assets:
Disclose all your bank accounts, including those that are dormant or not operational. If you have foreign assets or foreign income, make sure to comply with the reporting requirements as per the tax laws of your country.
Before submitting your ITR, it’s crucial to double-check the accuracy of the information provided. Carefully review the form for any errors or omissions that could lead to discrepancies or unnecessary scrutiny from the tax authorities. Pay close attention to details such as PAN, bank account details, and amounts entered. Thoroughly reviewing your ITR will minimize the chances of errors and potential penalties.
Consider E-Verification Options:
E-verification of the filed ITR offers convenience and saves time compared to the traditional method of physical verification. The Income Tax Department provides multiple options for e-verification, including net banking, Aadhaar OTP, and EVC (Electronic Verification Code). Opting for e-verification ensures faster processing and eliminates the need to send physical documents by post.
Double-Check The Details:
Carefully review all the details filled in your ITR forms, such as your name, PAN, address, income details, and bank account details. Any errors or discrepancies can lead to processing delays or tax notices. Before submitting your ITR, it’s crucial to double-check the accuracy of the information provided. Carefully review the form for any errors or omissions that could lead to discrepancies or unnecessary scrutiny from the tax authorities. Late filing may attract penalties and interest. Keep track of the deadlines announced by the tax authorities for each financial year.