Deadline to file ITR ends today: Your complete guide to filing return correctly
ITR filing: You can reduce your tax burden by opting for relevant deductions like home rent allowance, standard deduction, home loan interest, PF investments and more. To ensure your ITR filing is complete, you need to verify the tax return within 30 days.
The deadline to file Income Tax Return (ITR) without incurring any penalties is today, July 31. There is a last-minute rush to submit the tax returns on Monday. But, you need to be careful and keep some important factors in mind while filing your ITR to avoid errors. Due to the rush to file ITR at the last moment many taxpayers often end up committing a few errors, which may lead to fines and penalties.
In order to avoid any last-minute hassles, here is a guide to filing your ITR correctly. Here is everything you must keep in mind to file your income tax return correctly.
Select the right ITR form
The Income Tax Department has put out different forms for taxpayers according to their income and profession. ITR-1 is for salaried individuals with an annual income of up to Rs 50 lakh. ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have income under “profit and gains of business or profession in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm,” as per the Income Tax Department. ITR-3 is for freelance professionals whose annual income is less than Rs 50 lakh. ITR-4 is applicable to individuals, HUFs and businesses (not a limited liability partnership) with a total income of upto Rs 50 lakh.
Ensure you have the complete documentation ready
To file your ITR correctly, you need to have relevant documents like their salary slips, rent receipts, bank statements, Form 16, Annual Income Statement (AIS) PAN, Aadhaar, Form 26AS and more.
Verify your AIS details
The AIS details carry all your income, including money received from dividends, mutual fund transactions, interest payments, and other sources. If there is a discrepancy in your AIS, you need to get it corrected immediately. For this, you can submit an online feedback form to the Income Tax Department.
Ensure you opt for all relevant deductions
You can reduce your tax burden by opting for relevant deductions like house rent allowance, standard deduction, home loan interest, PPF investments, EPF contribution and more. Ensure you have chosen the correct tax regime (new or old) that provides you with the best possible option when it comes to reducing your tax liability with tax saving investments or deductions.
E-verification of ITR
The process of filing your ITR is incomplete unless you verify the ITR. Failure to do so can result in the ITR becoming invalid. To ensure your ITR filing is complete, you need to verify the tax return within 30 days. You can complete the verification process either online or offline. If you choose to verify your tax return online, you can do it via an Electronic Verification Code (EVC), net banking, an OTP or a Digital Signature Certificate.
ITR refund
You need to verify your tax return, use all applicable deductions and verify your bank account details in order to ensure you get your income tax refund.
What happens if you fail to file your ITR on time?
If you fail to file your ITR on time there could be penalties and even legal proceedings. You can file a belated tax return till December 31 for the relevant assessment year. Individuals with an income of less than Rs 5 lakh will have to pay a fine of Rs 1,000. If the income is above Rs 5 lakh, the fine levied will be Rs 5,000. Interest will also be levied on the belated tax return.
Apart from a penalty, not filing ITR on time can lead to legal persecution as well. Individuals can be jailed for a period from three months to two years for tax evasions. The imprisonment can extend up to seven years if the evaded tax amount is over Rs 25 lakh.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
Top 7 Mid Cap Mutual Funds With up to 41% SIP Returns in 5 Years: No 1 fund has converted Rs 15,000 monthly investment into Rs 23,84,990
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
12:57 PM IST