Filing income tax returns (ITR) can seem overwhelming, especially for first-timers. But, it’s not as complicated as you think, if you know the basics. By basics, we mean the online form you need to fill, the financial details you must disclose, and the deductions you must claim under Section 80C.
So, file your ITR without making rookie mistakes with the help of these 5 tips.
1. Choose the correct ITR form
The official returns website carries 7 forms, and you must pick the right one. Filling the wrong IT form might lead to rejection of your application, and you may even receive a notice from the department.
Carefully read the instructions given for each form before filling it.
2. Check pre-filled details
To make the online filingofincome tax returns easier, the official portal offers pre-filled details of your financial history in any given year. Relevant authorities collect these pre-filled details from diverse sources such as TDS returns filed by your employer, banks, Form 26AS, previous year’s ITRs, EPFO, mutual funds, etc.
Before filing your returns, verify these details again, as accuracy is crucial for tax returns. For example, if you borrowed a home loan in the last financial year and want to claim a tax rebate on it, there should be proof of it in your pre-filled ITR.
Incorrect filing can lead to revisions, or worse, tax penalties. So, minimise your chances for scrutiny by checking every pre-filled detail carefully.
Additional Read – How to file Income Tax Return for Small Business in India
3. Keep your investment paperwork close
In addition to providing a detailed breakup of interest earnings from fixed deposits, IT refunds, etc., you also have to share details of any capital gains made from selling shares, mutual funds or properties. If you’ve sold a property in a particular financial year, you need to provide complete details of the buyer at the time of tax filing.
Don’t worry; you’ll find spaces to fill this information in the online form. But, to quicken the data entry process, keep all your investment paperwork handy.
4. Timely verify your IT filing
It’s not enough to submit your ITR on the official portal. You also have to provide an additional verification that it is indeed you who has filed the return. Fortunately, verifying your IT return is not a cumbersome process. You can digitally verify through Aadhaar OTP or net banking within 120 days of filing your return.
5. Mind your timelines
What’s the point of diligently collecting all paperwork and learning the entire process if you forget to file your taxes on time? So, keep a check on advance tax dates, and ensure you don’t miss filing your return on time.
Remember, India’s financial year starts on the 1st of April and ends on the 31st of March.
Additional Read – Understanding the Form 16
Over to you
Are you planning to declare a property purchase on your ITR this year? But, do you have enough funds to buy it yet? If not, avail of housing finance with Tata Capital at affordable home loan interest rates, flexible repayment tenures, minimal paperwork and speedy processing.
Once you take a loan from us, don’t forget to claim a tax rebate on it. Remember that housing finance is tax-deductible up to Rs. 2 lakhs over and above your savings shown in Section 80C.
So, visit our website to check our home loan eligibility criteria, and start your application today!