The Income Tax Department released new ITR forms earlier this month,in which some important changes have been made. Changes were made in the rules of Capital Gains Tax in the Union Budget 2024,according to which it became necessary to amend the ITR form as well. Apart from this,some other changes have also been made.
However,the Income Tax Department has not yet released ITR filing utilities nor has Form 16 been issued by employers (companies). Nevertheless,taxpayers are advised to start collecting documents to file returns from now on. Do not wait for the last date 31 July at all,as last-minute haste and technical difficulties can cause trouble.
The last date to file an income tax return is 31 July
Tax experts say that the last date for filing income tax returns is usually 31 July. But,taxpayers should not wait for the last date to file returns. They should start preparing for it now. By doing this,you will be able to file your return correctly without any hurry and avoid any mistakes.
The first step to preparation
First of all,you have to decide which Income Tax Regime is more beneficial for you – new or old. Both regimes have different tax benefits and slabs,so choose wisely according to your income and deductions.
The second step in preparation
After this,you also need to know which ITR form you will have to use. Different ITR forms are used according to the source of income (like ITR-1 for salaried people,ITR-2 for those with estate income,etc.). If you are unable to understand it,you can take the help of a tax expert.
Start collecting these documents now
After choosing the income tax regime and the right ITR form,you should start collecting the required documents. These documents are extremely important for filing your returns in a correct and verified manner:
Bank Account Statements
Bank TDS Certificate
Aadhaar and PAN Card
Form 26AS
Annual Information Statement (AIS)
Form 16 (issued by employer)
Returns Filed in Previous Years
Salary Slips
Rent Agreement
Foreign Bank Account Statement
Transfer Statement of Investments Made Abroad
Proof for Taxation
Tax experts say that in this year’s Union Budget,the government has announced tax exemption for income up to ₹12 lakh per annum. But,it is important to note that this rule has come into effect from this financial year. Therefore,its benefit will be available while filing returns in the next financial year.
The returns that taxpayers will file before July 31 will be for the financial year 2024-25 (i.e. income from April 1,2024 to March 31,2025). Therefore,if you are using the old income tax regime,you will also have to submit proof of tax-saving investments,such as investments made under section 80C (PPF,LIC,ELSS,home loan principal) and health insurance premiums under section 80D.
Mandatory of Form 26AS and AIS
Before filing income tax returns,it is extremely important to download Form 26AS and AIS (Annual Information Statement). You can easily download both these documents from the Income Tax Department website.
Form 26AS: It contains information related to your income,TDS,and TCS,which helps you match your income and the tax deducted from it.
AIS: It provides a detailed account of all your financial transactions,including information such as bank account transactions,mutual fund transactions,stock transactions,and dividend income.
