Before filing the ITR, it’s essential to have a comprehensive understanding of all your income sources, such as salary, income from house property, business income, capital gains, and others.
Before filing the ITR, it’s essential to have a comprehensive understanding of all your income sources, such as salary, income from house property, business income, capital gains, and others.
Filing your Income Tax Return (ITR) on your own might seem complicated, especially if it’s your first time. However, recent changes on the e-filing website have made it simpler for anyone to file their ITR without the need for a tax professional. To file your ITR, you need to visit the official website of the Income Tax Department (ITD) – https://www.incometax.gov.in/iec/foportal and complete the registration process prior to submitting your IT Return online. The process of filing ITR is particularly straightforward for salaried employees who only have salary as their source of income. As the ITR filing for salaried employees for Assessment Year (AY) 2023-24 is about to commence, here are five steps you can take to prepare for filing your ITR on your own this year.
5 steps to keep in mind before filing your ITR:
Understand your income sources
Before filing the ITR, it’s essential to have a comprehensive understanding of all your income sources, such as salary, income from house property, business income, capital gains, and others. This knowledge will assist you in accurately filling out the appropriate forms and claiming all eligible deductions.
Collect all the required documents
You will require several documents like Form 16, 26AS, AIS/TIS, bank statements, investment records, rent receipts, etc. as and when you file your ITR. Hence, prior to the start date of ITR filing, it’s crucial to gather and organise all these documents together.
Experts suggest that self-filers should obtain necessary TDS certificates from their tax deductor and carefully verify the details. For example, salaried taxpayers should cross-check the details on Form 16 with their monthly payslips. If any discrepancy is found, the taxpayer can request the deductor to issue a revised TDS certificate by submitting a revised TDS return.
Select the appropriate ITR form
It is crucial to select the appropriate ITR form that corresponds to your specific income sources and taxpayer category, as per the officials. It is because there are different forms available for different types of income and taxpayers.
Make sure to avail deductions and exemptions
Taxpayers should also verify that they are availing all the deductions and exemptions they are entitled to, such as those offered under Section 80C, Section 80D, and so on.
By doing so, you can effectively decrease your taxable income and thereby reduce your tax liability, as told by the officials to media outlets. Additionally, it’s important to take into account any credit for TDS (Tax Deducted at Source), TCS (Tax Collected at Source), advance tax, or self-assessment tax that you have paid.
Starting from AY 2023-24, the default tax regime would be the new tax regime as per Section 115BAC of the Income Tax Act.
Calculate Your Taxable Income
You can utilise an Income Tax Calculator to determine your taxable income before filing your ITR. Based on your income and deduction details, calculate your taxable income in accordance with the provisions of the income tax law for the applicable year. This will allow you to ascertain the amount of tax payable or the potential refund you may be entitled to.
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