Easiest way to file ITR: Check these quick tips for filing Income Tax Return

With the Income Tax return deadline being extended from July 31st to August 31st, taxpayers are on their toes trying to collate all their investments and ensure saving the maximum possible of their income tax or clenching their fists thinking about the time spent procrastinating. Tax return filing is important for everyone; including those who fall in the exempted category. It enables one to have a clear understanding of income inflow and assets. India’s financially literacy rate is significantly low due to lack of interest and to a significant extent, exposure. 

Speaking on the matter Prashant Sharma, Chief Investment Officer, Aviva Life Insurance said, "Filing tax returns is an annual activity seen as a moral and social duty of every responsible citizen of the country. It is a means to be aware of different investment options and their respective benefits. More than the financial gain, it inculcates a sense of responsibility and opens one to financial education which is otherwise included in the regular academic curriculum in Indian institutions, unless one enrolls oneself specifically for it."

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Asked about the tips that an income taxpayer should keep in mind while filing his or her income tax return Sharma shares 5 last-minute income tax filing tips to maintain one's financial record with the government of India foolproof and lucid.

1] E-Filing

The magnanimity of ease has increased manifold with the introduction of online filing at the very outset. The salaried employees can visit the Income Tax Department website and file their returns. In scenarios of an absolute time crunch, one can also seek help from financial consultants or advisors. However, with the multitude of available e-filing portals, it is possible for every individual to own up the task.

Some of the key documents to keep in mind for ITR filing:

a) PAN card: individual’s professional identity;

b) Aadhaar card; 

c) Form 16 from the employer/ employers in case of shifts in employer;

d) Use Form 26AS; 

e) Proofs/ details of assets in the case of income exceeding Rs 50 lakh;

f) Bank statements; 

g) Investment Proofs; 

2] Tax Rules

Before starting with the filing process, it is advisable to go through the tax regulations for the assessment year. There can be changes and new amendments which are pre-requisites for correct computation of right tax liability. The returns will depend upon the slabs under which the returns have been filed.

3] Identify the right ITR form

There are seven ITR filing forms introduced by the I-T department. Therefore, it is key for one to know which form is to be used for the filing process. While it can be easily demarcated on the portal, however, it is essential to know about the different forms and its respective categories to ensure the filing procedure is accurate. Also, it enhances an individual’s know-how about the financial processes of the nation.

4] Verifying Details

It is always recommended to be cautious while taking the filing procedure. One should be careful about all the details and update them accordingly. While filling the forms one should be careful about the name, as it should match to that on the PAN card. If there is a mismatch in the spelling or omission/addition of a middle name, the return will not be processed. One should be fully aware of the tax deducted over the financial year, the investments made and the value of the assets one owns.

5] Avoid misrepresentation of Facts

It is important to be honest, and careful, especially to know that the data will be shared with the Government of India. In case of misrepresentation of facts which is more prevalent amongst those who have changed jobs in between, wrong facts will undoubtedly lead to a faulty computation of tax liability. Therefore, it is advisable first to collect all the information and then sit at ease to start the process. Avoid tax-saving tips/investment options set by unscrupulous/unauthorized wealth managers.

Income Tax Filing is pivotal in making one financially responsible, and it only starts with such small steps which build up one to know more about investment options. There is a number of tax saving options available to lower tax liability. Various tax savings investment options among others include PPF, NPS, EPF, Life Insurance Premium, tax-saving Mutual Funds (ELSS). In the following months, individuals should maximize their benefits at the end of the financial year with the filing of returns, timely. And finally, make sure to file the return before the deadline as late filing involves a penalty.