As the deadline for filing income tax returns (ITR) for the assessment year (AY) 2024-25 approaches, many taxpayers find themselves in a rush to complete their filings. Over 5 crore ITRs have already been filed. Income tax professionals advise tax filers not to wait for any deadline extension and must file ITR just now. They also suggest some last-minute tips to help taxpayers file ITR accurately and smoothly.
The income tax department in its post on X on July 26 has also urged taxpayers to file their income tax returns at the earliest. The last date to file ITR for AY 2024-25 is July 31.
“We urge all those who haven’t filed ITR for AY 2024-25, to file their ITR at the earliest to avoid last minute rush,” the income tax department said in the post, adding that over 5 crore ITRs for AY 2024-25 have already been filed till July 26 this year as compared to July 27 last year.
1. Gather All Necessary Documents
An income tax expert said, “As time is running out, taxpayers must keep ready their documents before start filing ITR. The documents required are Form 16 from your employer; interest certificates from banks and post offices; TDS certificates; investment proofs for deductions under Section 80C, 80D, etc; and Form 26AS for tax credit details.”
2. Verify Form 26AS
The tax expert also asked taxpayers to make sure the details in Form 26AS match with the entries in your ITR form to avoid discrepancies and potential scrutiny from the income tax department.
Form 26AS is a consolidated tax statement that provides details of tax deducted, tax collected, and any advance tax paid during the financial year.
3. Choose the Correct ITR Form
Selecting the correct ITR form is crucial, the expert said. For instance, ITR-1 (Sahaj) is for individuals with income up to Rs 50 lakh and having income from salaries, one house property, and other sources. ITR-2 is for individuals and HUFs not having income from business or profession. Using the wrong form can lead to the rejection of your ITR.
4. Disclose All Sources of Income
“Ensure you disclose all sources of income, including salary, interest, rental income, capital gains, and any other sources. Non-disclosure can attract penalties and scrutiny. Remember to include any income earned from previous employers during the financial year,” the expert said.
5. Claim Deductions and Exemptions
He also said that those going for old tax regime must maximise their tax savings by claiming all eligible deductions under various sections of the Income Tax Act. The available deductions are:
Section 80C: Investments in PPF, NSC, ELSS, etc.
Section 80D: Health insurance premiums.
Section 24(b): Interest on home loan.
“Make sure you have the necessary documents to support these claims,” he added.
6. Report Exempt Income
Exempt income, such as agricultural income, must be reported in the ITR, even though it is not taxable. This ensures transparency and avoids future complications.
7. Reconcile Your Bank Accounts
Ensure that your bank statements and passbooks reflect all transactions accurately. Cross-check them with your Form 26AS to confirm that all tax deductions and payments have been accounted for.
8. Avoid Common Mistakes
The tax experts also asked taxpayers to be mindful of common errors such as: entering incorrect personal information, errors in bank account details, misreporting or omitting income, incorrect computation of total income and tax liability.
9. Use the Pre-Filled ITR Form
The income tax department provides pre-filled ITR forms with details such as salary, interest income, and tax payments. Review and verify these details carefully, and make necessary corrections if required.
10. E-Verify Your ITR
“Filing your ITR is not complete until it is verified. Use the e-verification option through Aadhaar OTP, net banking, or other available methods to complete the process. If you choose to verify using a physical method, ensure that the signed ITR-V is sent to the CPC within 120 days of filing,” he said.
11. Seek Professional Help If Needed
He also added that if you find the ITR filing process overwhelming or complicated, do not hesitate to seek help from a tax professional. They can provide valuable guidance and ensure your ITR is filed accurately and on time.
12. Check for Updates and Notifications
Stay updated with any announcements or notifications from the Income Tax Department regarding deadlines or changes in the filing process. This can help you avoid last-minute surprises.
13. Don’t Wait for Deadline Extension
“Though there are expectations of a deadline extension till August 31 among tax professionals, it is not advisable to wait for that. The income tax department through multiple communications has reminded taxpayers to file the return as soon as possible,” the tax expert said.
“Do remember to file your ITR if you haven’t filed yet. The due date to file ITR for AY 2024-25 is 31st July, 2024,” the income tax department said in a post on X on July 26.
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