ITR filing lessons for first-time taxpayers: It’s income tax filing season. Salaried individuals should have received their Form-16 from employers by now and can begin filing their income tax returns (ITRs). E-filing ITR has become quick and easy, allowing individuals to complete it conveniently from home. However, the process can be daunting, especially for first-time filers.
Here are eight lessons for first-time taxpayers filing their ITR
1)Total taxable income: This includes your gross earnings from salary and other sources, minus any tax-saving deductions.
2)New vs. old tax regime: Decide whether to opt for the new or old regime with deductions and tax benefits. Use online tax calculators to determine which option minimizes your tax liability.
3)Form 16: This TDS certificate provided by your employer details your salary, deductions claimed, and exemptions availed, which are essential for filing your ITR.
4)Review Form 26AS: This document summarises income on which TDS has been deducted, which is crucial for accurate tax filing.
5)Annual Information Statement (AIS): Includes details like interest income, dividends, securities transactions, and foreign remittances, pre-filled in your ITR form for ease.
6) ITR forms to choose
ITR-1: For individuals with income from salary, one house property, and other sources.
ITR-2: For individuals and HUFs without business income.
ITR-3: For individuals and HUFs with income from business or profession.
ITR-4: For presumptive income from business or profession.
7) Documents needed: PAN card, Aadhaar details, investment proofs, home loan interest certificate, and insurance premium payment receipts.
8) Verify your ITR: After filing, verify your return online via Aadhaar OTP or offline by sending a signed ITR-V form to CPC, Bengaluru, within 30 days.
Income Tax Return filing deadline
File your income tax returns by July 31st of each financial year to avoid penalties.
These essential tips/ lessons will help ensure a smooth and accurate filing process for first-time taxpayers.
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Published: 26 Jun 2024, 10:31 AM IST
