Filing the income tax return (ITR) is a crucial financial step for salaried taxpayers, especially when failure to do so attracts penalities and legal actions.
The deadline of July 31 to file income tax returns is approaching, and taxpayers must be searching for documents, forms, and necessary information to file their tax returns as soon as they can.
Hence, having a clear idea of the important things and documents needed to file the ITR makes the tax filing process hassle-free.
Before filing your tax return, make sure that you have linked your Aadhaar with your PAN. The bank account where you want to receive your refund should be validated.
Choose the correct form
Make sure to choose the correct ITR form before you file the return. If you choose the wrong form, the return will be considered defective, and you will have to file a revised ITR again using the correct form.
If you are a salaried taxpayer, you have to file ITR-1.
What is ITR-1?
ITR-1 can be filed by a resident individual whose total income does not exceed Rs 50 lakh during the financial year.
The income should be from salary, one house property, family pension income, agricultural income (up to Rs 5,000), and other sources such as interest from savings accounts, deposits, and enhanced compensation or family pension.
Who cannot use ITR-1?
ITR-1 cannot be filed by an individual who is:
- A resident not ordinarily resident and non-resident Indian,
- Has total income exceeding Rs 50 lakh,
- Has income from lottery, racehorses, legal gambling,
- Has taxable capital gains (short-term or long-term),
- Has invested in unlisted equity shares,
- Has income from more than one house property.
Important documents for filing the ITR
Download the Annual Information Statement (AIS) and keep copies of Form 16, house rent receipt (if applicable), and investment payment premium receipts (if applicable).
However, taxpayers should note that they are not supposed to attach any documents (such as proof of investment, TDS certificates) with their return. But keep these documents handy in case they need to be shown to tax authorities for an assessment or inquiry.
Key things to remember when filing ITR
Spot discrepancy – First and foremost, download the AIS and Form 26AS and check the actual TDS/TCS. If there is any discrepancy, make sure to reconcile it.
Examine documents carefully – Compile and carefully examine all the documents needed when filing your ITR, such as bank statements/passbooks, interest certificates, receipts for claiming exemptions or deductions, Form 16, Form 26AS, and investment proofs.
Prefilled data – Ensure that the details such as PAN, permanent address, contact details, and bank account details are correct in the pre-filled data.
Make sure to e-verify – After e-filing the return, e-verify it. If you want to manually verify your return, you can send the signed physical copy of the ITR-V Acknowledgement (by speed post) to the Centralised Processing Center, Income Tax Department, Bengaluru 560500.
With these steps, filing your income tax return can be straightforward. Always double-check your forms and documents to avoid mistakes and ensure a smooth tax filing process.
Source Agencies
