ITR Filing: What precautions should you take for filing income tax returns?

ITR Filing: As the deadline to file income tax returns nears, taxpayers must remain cautious to avoid inaccuracies, which may cause delays or even penalties.

From selecting the applicable tax regime to verifying the necessary documents, here are some precautions listed by the Income Tax Department on its ITR-1 (Sahaj) platform for taxpayers to avoid errors —

Select the tax regime

Although the Income Tax portal by default follows the new tax regime, taxpayers have the option to opt for old tax regime as well. Taxpayers can choose either of the regimes according to their preference.

Cross-check key documents

Download AIS and Form 26AS to verify the actual TDS, TCS, or tax paid. If you find any discrepancies, reconcile them with your employer, tax deductor, or bank.

Verify all the documents

Compile and thoroughly review the documents you’ll need when filing your ITR, such as bank statements/passbooks, interest certificates, receipts for exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, and similar documents.

Select the correct ITR form

Choose the appropriate income tax return form from ITR-1 to ITR-7. Include all relevant details in the return, such as total income, deductions (if any), interest (if any), taxes paid or collected (if any), etc. Notably, no documents have to be attached with ITR-1.

Verify personal details

Make sure that details such as PAN, permanent address, contact information, and bank account details are accurate in the pre-filled sections data.

Do not miss the deadline

E-file the income return on or before the due date. The consequences of delaying the filing include late filing fees, loss of carry-forward benefits, and the unavailability of deductions and exemptions.

E-verify returns

After e-Filing your return, remember to e-Verify it. If you prefer manual verification, send the signed physical copy of your ITR-V Acknowledgement via speed post within the specified timeline to the Centralised Processing Centre of the Income Tax Department.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.