Filing income tax returns was quite tedious when we did it in the physical format. Online filing has made this process much more straightforward and time-saving. It is incredibly convenient to file your tax returns from the comfort of your home or office without having to make multiple trips to the income tax office. You can also take up an income tax return filing course to learn how to compile all the information needed to file your ITR.
Here are a few essential points that will help you in filing your income tax returns correctly.
Choosing the Right Form
It is essential to choose the right for filing your income tax returns. There are multiple forms available online for different assessees according to their nature of income. The first step for filing income tax returns is selecting the correct application form.
Quoting the Correct PAN and Tax Credit Statement
You need to log in to the government portal for filing the income tax returns and then enter your Permanent Account Number (PAN). It is essential to enter all the digits of the number correctly as even the slightest of mistakes can create errors. If you wish to confirm your PAN online, you can do so online from the income tax websites. Once you log in, you will see the TDS statement by the income tax department. It is called Form 26AS and is available online.
Bank Details and Other Sources of Income
Keep your bank details and details of other sources of income handy while filing your income tax returns online. As per the new income tax rules, refunds up to Rs. Twenty-five thousand can be credited to your bank account. Hence, it is essential to provide updated bank details such as bank account numbers and IFSC codes. When filing your returns, you should mention the details of any income from other sources, such as any earning from capital gains, mutual funds, saving deposits, investments, or any income from other businesses or sources.
Details of foreign assets
The Income Tax Act of 1961 states that any citizen who is a tax-payer of India must pay taxes for any other foreign assets held by them. You have to provide details regarding such assets or any income received from such assets abroad, along with your bank account details.
Claim Deductions for Tax Savings
You can claim benefits of certain deductions at the time of filing your income tax return. These payments are deducted at the time of filing claims so that you can receive the credit while processing the return itself. You should check which of these payments fall under the eligibility criteria under sections 80D, 80C, etc. You can easily understand all these through an income tax return filing course.
Filing your income tax returns on time
Filing the income tax retunes in time is very important; otherwise to avoid paying any interests and penalties. Filing returns timely allows quicker processing of refunds, if any. You can also enroll yourself in an income-tax-return filing course to learn how to file your taxes in a foolproof manner.