ITR Checklist: What You Must Know Before Filing Income Tax Return This Year?

Income tax return (ITR) is a form that individuals and businesses file annually with the Income Tax Department to report their income and tax liability for the previous financial year. The due date for filing the ITR varies depending on the type of taxpayer and the mode of filing.

It is essential to file your income tax return within the due date to avoid penalties and other legal consequences. Additionally, it is recommended to seek the assistance of a tax professional or use tax filing software to ensure accurate and timely filing of your income tax return.

It helps the government keep track of an individual’s income and ensures that they are paying their fair share of taxes. This revenue generated through taxes is crucial for the development and functioning of the country’s infrastructure, healthcare, and education systems.

Here are some important things you should know before filing income tax return;

• Gather all the necessary documents: Keep all the documents related to your income, investments, and expenses handy, such as Form 16, salary slips, bank statements, TDS certificates, investment proofs, and bills.
• Determine your income source: You must know the sources of your income, such as salary, business income, capital gains, or income from other sources.
• Choose the correct ITR form: There are different ITR forms for different categories of taxpayers based on their income and income sources. Choose the correct ITR form that applies to you.
• Verify the TDS details: Check your TDS (Tax Deducted at Source) details to ensure that the correct amount has been deducted from your income and deposited with the government.
• Claim all available deductions: Ensure that you claim all the deductions available under various sections of the Income Tax Act, such as Section 80C, 80D, 80G, etc..
• Calculate tax liability: Calculate your tax liability after deducting all the available deductions from your gross total income.
• Verify your ITR: After filing your ITR, verify it using the Aadhaar OTP, net banking, or sending a signed ITR-V form to the Income tax department. Verification is mandatory for the processing of your ITR.
• Keep a copy of the filed ITR: It is important to keep a copy of the filed ITR as proof of having filed your return.

By following these steps and ensuring that all the necessary information is accurately reported, you can file your ITR smoothly and avoid any penalties or fines.

.ITR filing date 2023: Usually, Income Tax Returns should be filed by July 31

Taxpayers are advised to check the official website of the income tax department (https://www.incometax.gov.in/iec/foportal/) for more details and it is recommended to seek the assistance of a professional or consult for any clarifications or queries.

Read all the Latest Business News, Tax News and Stock Market Updates here