As per the Income Tax Department’s guidelines, individuals with taxable income must make their timely tax payments and file income tax return (ITR) annually. First-time filers and students must also be well aware of the process to ensure a hassle-free completion once they undertake return filing.
Paying income tax within the stipulated time is mandatory for individuals whose annual income qualifies for taxability. In this regard, one can utilise the following tips for filing the income tax return to avoid any mistakes.
- Collect your TDS certificates, if any, from the concerned authority, along with any other essential certificate serving as a declaration of income such as capital gains statement.
- Confirm tax submissions via a Form 26AS download. It should help you cross check whether the taxes already deducted for the concerned financial year are deposited against your PAN or not.
- Apply for any rectifications to the Form 26AS if any error is identified to obtain the correct details of such deductions and deposits.
- Proceed to compute your total annual income for the concerned financial year. It should also help you identify the income tax slab you qualify for.
- Compute your tax liability as per the income and applicable slab rate.
- Also, adjust any of the paid taxes with the tax liability to arrive at the actual amount of tax payable by you.
- Proceed for e-filing of income tax at the designated portal.
Nevertheless, before starting with the procedure, make sure to obtain and keep handy the following details and documents.
- PAN details
- Salary slip
- Bank account details
- TDS certificate
- Interest certificate
- Proof of investments with a tax savings option
Filing of income tax returns is crucial to avoid any legal dispute. Additionally, it also acts as an income proof when one applies for advances such as a home loan. Thus, filing and paying taxes within the time can help with overall financial planning of individuals.
