Submitting Revenue Tax Return? Key issues to know earlier than submitting ITR

The deadline for submission of Revenue Tax Return (ITR) for the monetary yr 2021-22 and evaluation yr 2022-23 is July 31. Therefore, many of the taxpayers are within the strategy of submitting their ITRs. Tax returns needs to be filed as early as attainable to keep away from any potential last-minute trouble.

Learn additionally: Tips on how to File Revenue Tax Return | Step-by-Step Information, Paperwork Required

Whereas the Revenue Tax Division offers pre-filled kinds to assist salaried people file their returns with none trouble, taxpayers also needs to preserve all of the required paperwork useful, and fill in every area within the pre-filled kind. Should cross-check.

In the meantime, people submitting ITR for the primary time ought to preserve the next key factors in thoughts:

(1.) Select the right ITR Kind: For correct submitting, choose the relevant kind based mostly in your residential standing and earnings earned from varied sources. The return is not going to be processed whether it is filed by way of the flawed kind, and the tax division might ship you a ‘faulty return discover’.

Additionally learn: Submitting Revenue Tax Return | Final date, new kind particulars and full guidelines

(2.) New Tax Regime Vs Outdated Tax Regime: For enterprise homeowners, the tax regime as soon as chosen can’t be modified. Nonetheless, people with earnings from wage, home and property can change their tax regime yearly.

The brand new alternate tax regime, together with revised tax slabs and charges, was launched by the Revenue Tax Division by way of the Finance Act 2020. Nonetheless, these choosing the brand new regime should keep away from exemptions and deductions.

(3.) Pre-filled ITR Types: The pre-filled info consists of private particulars, wage, dividend earnings, curiosity earnings, capital good points and so forth. Nonetheless, if the knowledge is inaccurate, it’s advisable to contact the financial institution/payee of the earnings to replicate the precise particulars.

(4.) Verification of Pay as you go Taxes: It is very important confirm pay as you go taxes together with tax deducted at supply (TDS), advance tax and self-assessment tax. Any discrepancy needs to be reported to the employer (for wage earnings), different payers (for different earnings) and banks (for advance tax/self-assessment tax cost).

(5.) Cost of Steadiness Taxes: After figuring out the whole taxable earnings, the relevant charges needs to be utilized for computing the whole tax legal responsibility. Any tax payable on tax return after claiming credit score of pay as you go taxes needs to be paid together with relevant curiosity, if any, earlier than submitting of tax return.

(6.) Disclosure Necessities: The property and monetary investments that should be disclosed are specified particulars of all Indian financial institution accounts, specified particulars of unlisted fairness shares, and directorship particulars in Indian or international corporations.

(7.) Steadiness Tax Cost: Consider tax legal responsibility upfront, and make vital tax funds inside due dates. This can assist you to keep away from relevant curiosity on delayed tax funds.

(8.) Reporting of Exempted Revenue: Agricultural earnings, minor’s exempt earnings, earnings not taxable as per the Double Taxation Avoidance Settlement, and so forth. should be reported.

(9.) Change in Employment: If a taxpayer submits requisite earnings and wage particulars from his earlier employer to his present firm, the latter can problem a consolidated Kind 16 and 12BA, based mostly on which ITR may be submitted.

Learn additionally: Steps to file your ITR for taxpayers with two Kind 16

(10.) Lacking the deadline for submitting ITR: In such a state of affairs, the taxpayer might face motion beneath the Revenue Tax Act. This consists of restoration of 1, or late submitting price, cost of curiosity on remaining tax legal responsibility, ineligibility to hold ahead sure losses, and so forth.

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