Keep these things in mind to avoid mistakes while filing ITR this year
Whether you are new to the process or a seasoned professional, filing income taxes can prove challenging. When you are overwhelmed with a number of tasks to do, it is easy to slip up at some point and make a small mistake in your ITR filings. However, even the smallest and most harmless of mistakes can invalidate your entire income tax returns. Read More
So, in order to avoid falling prey to the confusion of income taxes, make sure to closely follow the steps listed out in this ITR filing checklist. With these simple, basic steps you can cover the ground of the entire income tax filing process and come out on top:
- Maintain and arrange documents:
The first part of any ITR filing checklist, and the part where most people get confused, is compiling all relevant documents for the process. It is easy to get lost in all the statements, forms and invoices you might have to deal with. But if you follow some simple category rules, you are sure to get all your paperwork sorted.
- Identification: These documents comprise of your Aadhaar card and PAN card, both of which are crucial to the entire process.
- Forms: As a salaried employee, you must have a Form 16 issued by your employer. It contains all the relevant information you need regarding your employment, overall salary structure, break-up and taxes deducted by the employer on your behalf.
You must also keep Form 26AS handy as it is a consolidated statement of all the taxes deducted during the financial year, both on your behalf as well as directly by yourself. If you have earned income from sources such as sale of property or investments, it is also important to procure Form 16A and Form 16B.
- Statements/certificates: If you earn interest by means of investments such as fixed deposits, you must procure an interest certificate. If you have earned an income through capital gains, include a relevant capital gains statement as well. Also, include proofs of any tax-saving investments you have made in the past financial year. For instance, you could be availing tax deductions under Section 80C for your term insurance premiums, so make sure to include proofs detailing this fact. Browse the website to know more about Term Insurance and the various Term Plans offered by PNB MetLife.
- Prepare for the process:
Now, before you prepare for the actual income tax filing process, there is an ITR checklist of tasks you must fulfill first:
- Ensure you have a working email ID and phone number to easily facilitate the linking of your other IDs and the IT department.
- In the age of technology, most people opt for the convenience of filing income taxes online. Go to the IT department’s tax filing website and create an account.
- Make sure to select the form applicable to you. While there are 9 types of ITR forms available, the most common form applicable to people is ITR-1.
- During the process:
Every good ITR filing checklist should also include details of the various parts of the filing process.
So, once you procure the form that is applicable to your case, make sure to fill out every detail carefully. If you fill out your form online on the IT department’s website, you can even save the information so that you have an easier time filling it out next financial year.
To make the filing process easier, make sure to include Form 26AS as an important part of your ITR checklist. As a comprehensive tax statement, Form 26AS helps you keep track and compare details of all your income and tax deductions. With this form, you can easily ensure that all your ITR entries are accurate.
In case your only income is the one provided by an employer, your income tax return will comprise only of the Form 16 and your overall ITR checklist should be fairly short. If you have received income from other sources, however, make detailed, specific mentions of each source as well as the relevant taxes applicable to each.
- After the process: Many people tend to forget an important part of the ITR filing checklist. The entire process is not completed at the filing of the relevant documents, but rather at the verification of your returns. This can be done physically, but most individuals today tend to e-verify their ITR returns through Aadhaar-based OTP, netbanking or demat account.
As long as you follow all these individual sections and tasks mentioned within this comprehensive ITR filing checklist, you should have a smooth time filing your taxes. Always remember, when it comes to something as essential as filing income taxes, one must be prepared. So, don’t miss a step and make the most of your resources during this upcoming tax season.
*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.
The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.
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