As income tax filing season approaches, salaried individuals should have received their Form-16 from employers, marking the beginning of the income tax return (ITR) filing process. E-filing has made the process quick and easy, allowing taxpayers to file their returns conveniently from home. However, for first-time filers, the task can seem daunting. Here are eight essential tips to guide you through your first ITR filing experience:
Your total taxable income includes your gross earnings from salary and other sources, minus any tax-saving deductions. Ensure you have a clear understanding of all components of your income to accurately calculate your taxable amount.
Decide whether to opt for the new or old tax regime. Each has different deductions and tax benefits. Utilize online tax calculators to determine which option minimizes your tax liability effectively.
Form 16, provided by your employer, is a TDS certificate that details your salary, deductions claimed, and exemptions availed. This document is crucial for accurately filing your ITR.
Form 26AS is a summary of income on which TDS has been deducted. Reviewing this document ensures that all TDS details are accurately reflected in your tax filing.
The AIS includes details such as interest income, dividends, securities transactions, and foreign remittances, which are pre-filled in your ITR form for ease. Verify these details for accuracy before filing.
Selecting the appropriate ITR form is crucial:
Ensure you have all the required documents, including your PAN card, Aadhaar details, investment proofs, home loan interest certificate, and insurance premium payment receipts.
After filing your ITR, verify it online using Aadhaar OTP or offline by sending a signed ITR-V form to CPC, Bengaluru, within 30 days to complete the process.
Remember to file your income tax returns by July 31st of each financial year to avoid penalties.
By following these essential tips, first-time taxpayers can ensure a smooth and accurate ITR filing process. Happy filing!
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