Income Tax: Make note of these 5 key points if you are a salaried taxpayer
Taxpayers are supposed to ensure that the key details such as PAN, permanent address, contact details and bank account details are correct in the pre-filled data.
As the deadline of July 31 to file income tax (I-T) returns is approaching fast, taxpayers must be scouting for documents, forms and necessary information to be able to file their tax return as soon as they can.
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 have been validated.
Here, we give a lowdown on some of the important details that salaried taxpayers need to file their income tax return (ITR).
If you are a salaried taxpayer, make note of the following points:
The correct form
Make sure to choose the correct ITR form before you file the return. Else, the return would amount to defective return, and you will have to file a revised ITR again using the correct form.
You have to file ITR-1 to file income tax return if you are a salaried taxpayer.
What is ITR-1?
ITR-1 can be filed by a resident individual whose total income does not exceed ₹50 lakh during the financial year and the income is from salary, one house property, family pension income, agricultural income (up to ₹5,000) and other sources which include interest from savings accounts, interest from deposits and interest received on enhanced compensation or family pension.
Who can’t use ITR-1?
It is important to remember that ITR-1 cannot be filed by an individual who is a resident not ordinarily resident and non-resident Indian, has total income exceeding ₹50 lakh, has income from lottery, racehorses, legal gambling, has taxable capital gains (short term or long term) and also if you invested in unlisted equity shares, and has income from more than one house property.
What are the documents I need before filing the ITR?
You need to download AIS (Annual Information Statement) and keep copies of Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable).
It is, however, vital to note that taxpayers are not supposed to attach any document (such as proof of investment, TDS certificates) along with your return. But you need to keep these documents in case they need to be produced before the tax authorities for an assessment or inquiry.
What are the key things to remember at the time of filing ITR?
A Spot discrepancy: First and foremost, download AIS and form 26AS and check the actual TDS / TCS. If there is any discrepancy, make sure to reconcile it.
B Examine documents carefully: Make sure to compile and carefully examine the documents to be referred to when filing your ITR, such as bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
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C. Prefilled data: Taxpayers are meant to ensure that the details such as PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
D. Make sure to e-verify it: After e-filing the return, e-verify it. If you want to manually verify your return, you can send the signed physical copy of ITR-V Acknowledgement (by speed post) to the Centralised Processing Center, Income Tax Department, Bengaluru 560500.