Preparing for ITR filing 2024? Understand the new rules and important changes of this year! The Income Tax Department has released the ITR forms, which have made important amendments to the rules related to capital gains.
Although the utilities and Form 16 for online filing are not yet available, you should start collecting your documents from now itself. In this article, know which ITR form to choose, what mistakes to avoid, and what documents are necessary so that you can file your ITR on time and without any hassle.
Why not wait for the last minute
Often people think that when the last date for filing an income tax return is July 31, then what is the need to worry from now? But, this thinking is not right at all. The haste to file at the last minute increases the chances of mistakes, which can make all your hard work go to waste.
Changes have been made in some ITR forms by the Income Tax Department, especially according to the new rules for capital gains. However, the utilities for online filing are yet to be released, and salaried employees have not even received Form 16 from their employers yet. Despite all this, you should start collecting the necessary documents right now.
Choosing the right ITR form is very important
First of all, you should check which ITR form you have to use. This year, taxpayers who have made capital gains have also been given the facility to use ITR-1 (Sahaj). However, there are some conditions for this. For example, if your full-year capital gains from selling shares or mutual fund units are less than ₹1.25 lakh and you do not want to carry forward any losses, you can use ITR-1. It is important to note that if a taxpayer uses the wrong ITR form to file a return, his return may be considered ‘defective’.
Documents required for ITR filing
You will need several important documents to file ITR. Start gathering these now:
Bank account details
TDS certificates (Form 16A/16B/16C)
Aadhaar and PAN
Form 26AS
Annual Information Statement
Form 16
Salary Slip
Rent Agreement
Which tax regime to choose
It is important to note that individual taxpayers can change their income tax regime even after filing returns. In the budget presented on February 1 this year, the government has announced tax-free income up to ₹12 lakh per annum, which may increase taxpayers’ interest in the new income tax regime. It is important to choose the right regime according to your financial situation.
Investment proof is very important for the deduction
If you have decided to use the old tax regime, you will need several documents to claim a deduction on tax-saving investments:
If you have invested in mutual fund schemes, life insurance policies, NPS, etc. to avail deduction under Section 80C of Income Tax, then proof of the same will be required.
If you have bought a medical policy, you will get deduction on it under Section 80D. But, for this you will need a premium payment certificate.
If you have taken a home loan and want to claim deduction on interest, then for this you will have to get an interest payment certificate from the bank.