An income tax return is a form used by taxpayers to declare their income, investments, expenses and tax deductions. Filing returns is a mandatory requirement for individuals earning above a certain annual income, and your inability to file can lead to unnecessary penalties.

To avoid the same, we have compiled a checklist of requirements to make the process as quick and easy as possible. Remember that before you begin, you must always pay keen attention to every little detail.

  1. Collect All Documents Required to File the ITR
  2. To make the process easier, make sure you have access to the following documents in front of you.
    • Form 16 – TDS certificate issued by your employer
    • Interest certificate from banks or any other financial institutions
    • Form 26AS of the previous financial year
    • Proof of tax-saving investments/exemptions
    • Aadhar card
    • PAN
    Besides compiling these documents to be submitted, you also need to make sure you pre-validate and link your bank account with your PAN as the income tax department only processes e-refunds to the account that is linked to your PAN.

  3. Make Sure You Have the Correct ITR Form
  4. There are different ITR forms applicable according to your income. Make sure you have the correct form. These forms are available on the Income Tax India website, and you will be required to fill the applicable form online and then submit along with all the documents mentioned above. These are the forms to choose from.
    1. ITR-1
    2. ITR-2
    3. ITR-2A
    4. ITR-3
    5. ITR-4
    6. ITR-4S
    7. ITR-5
    8. ITR-6
    9. ITR-7
    While most of these forms are applicable to individuals, some of them are for businesses. Choose the form carefully as per your requirements.

  5. Calculate Your Total Income and The Associated Tax Liability
  6. Your total income is a total of all your earnings; this includes interest on your bank balance and investments. Once you have done so, make sure to check if you are eligible for any tax-saving exemptions. (HRA, LTA, and others under sections 80 C, D, etc.)

    Deduct the exemption amount, and you will arrive at your total taxable income which will have a certain tax liability with it. You can easily calculate this and then deduct the amount mentioned in form 26AS. You will now arrive at a certain figure which will make it clear if you are eligible for a refund or if you still need to pay more tax. If you need to pay more tax, then make sure you pay it before filling out the ITR form.

Keep Calm and File Your Income Tax Returns

When the final dates for filing returns loom over our heads, we may find it difficult to make sense of it all. But keep a calm temperament, and you will find that ITR filing is not as complicated as it sounds. Ultimately, the satisfaction from having understood the system is well worth the time and effort.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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