Eight Essential Tips for First-Time Taxpayers Filing Their ITR for FY 2024

ITR

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:

1) Understand Your Total Taxable Income

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.

2) Choose Between the New and Old Tax Regimes

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.

3) Utilize Form 16

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.

4) Review Form 26AS

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.

5) Check Your Annual Information Statement (AIS)

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.

6) Choose the Correct ITR Form

Selecting the appropriate ITR form is crucial:

  • ITR-1: For individuals with income from salary, one house property, and other sources.
  • ITR-2: For individuals and HUFs without business income.
  • ITR-3: For individuals and HUFs with income from business or profession.
  • ITR-4: For presumptive income from business or profession.

7) Gather Necessary Documents

Ensure you have all the required documents, including your PAN card, Aadhaar details, investment proofs, home loan interest certificate, and insurance premium payment receipts.

8) Verify Your ITR

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.

Income Tax Return Filing Deadline

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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