Income tax return is a document that individuals, businesses, and other entities must file with the Income Tax Department to declare their income earned during a financial year and the taxes paid on that income. The financial year in India starts on April 1 and ends on March 31 of the following year. Therefore, taxpayers are required to file their income tax returns every year by July 31, which is usually the deadline for individual taxpayers, while the deadline for businesses and other entities may vary depending on their category.
By filing an income tax return, taxpayers disclose their income from various sources, such as salary, business or profession, house property, capital gains, and other income. Based on this income, the tax liability of the taxpayer is calculated, and if any tax is due, it must be paid before filing the return.
Filing an income tax return is mandatory for individuals and entities whose income exceeds the exemption limit specified by the IT Department. Filing an income tax return also serves as proof of income and is required when applying for loans, visas, or other financial transactions.
What Precautions Should You Take While Filing Income Tax Return?
- Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct in the pre-filled data.
- Download AIS and Form 26AS and check the actual TDS / TCS / tax paid. If you see any discrepancy, you should reconcile it with the Employer / Tax Deductor / Bank.
- Compile and carefully study the documents to be referred to when filing your ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
- Identify the correct return for you (from ITR-1 to ITR-7).
- Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid / collected (if any), etc.
- No documents are to be attached along with ITR-1.
- e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
- After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income.
- After e-Filing the return, e-Verify it.
- If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by speed post) within appropriate timelines of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).
Documents You Need To File ITR
You would need documents like Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable) and other documents depending on the ITR form applicable. However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc..
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