Taxpayers ought to select the suitable ITR type primarily based on their residential standing and revenue sources.
Income tax division has enabled on-line submitting of ITR-1, ITR-2 and ITR-4
Online Filing of Income Tax Return For FY 2023-24: Even as e-submitting of ITR-1, ITR-2 and ITR-4 has been enabled by the revenue tax division, taxpayers can now file their ITR for the monetary 12 months 2023-24 (or AY 2024-25). However, an revenue tax knowledgeable recommended key stuff you want to bear in mind whereas submitting the ITR.
Divya Baweja, accomplice at Deloitte India, mentioned, “As the financial year 2023-24 has ended, taxpayers are gearing up for filing their tax returns by the due date. To facilitate a smooth process, several key aspects must be kept in mind by each taxpayer.”
Choose Appropriate Form
Baweja mentioned taxpayers ought to select the suitable return type primarily based on their residential standing and revenue sources.
Currently, the revenue tax division has enabled on-line ITR submitting for ITR-1, ITR-2 and ITR-4.
ITR-1 is filed by people, together with salaried class and senior residents.
Though the ITR-1 on-line is now accessible for submitting, salaried people will be capable to file the revenue tax return after Form-16 is offered to them from their firm.
ITR-2 is filed by companies and professionals who’ve opted for presumptive taxation and people people whose annual revenue doesn’t exceed Rs 50 lakh.
ITR-4 is for resident people, HUFs and corporations (aside from LLP) having whole revenue as much as Rs 50 lakh and having revenue from enterprise and occupation which is computed below Sections 44AD, 44ADA or 44AE and agricultural revenue as much as Rs 5,000.
Declare Income Accurately
All incomes, together with wage, hire, capital positive factors, curiosity, dividends, and so forth, have to be declared precisely, with applicable cross-checking towards related paperwork, she mentioned.
Choose Between Old Regime Vs New Regime Carefully
The Deloitte accomplice mentioned it’s essential to resolve between the outdated and new tax regime, primarily based on whichever regime is extra useful.
In the outdated revenue tax regime, revenue as much as Rs 2.5 lakh is exempt and additional deductions can be found on sure funding and financial savings, which might cut back tax liabilities. However, below the brand new tax regime, revenue as much as Rs 5 lakh is exempt, with none additional deductions.
Report Assets, Liabilities
Baweja mentioned reporting of specified property and liabilities is obligatory for all people with whole revenue exceeding Rs 50 lakhs, Resident and Ordinarily Residents require to moreover report abroad property.
Reconciling tax deductions and advance tax funds is crucial to find out self-evaluation tax, wherever payable, since settlement of tax legal responsibility is a should previous to submitting of the tax return.
Complete E-Verification Process
After submitting of the revenue tax return, finishing the e-verification course of is critical for validation. If e-verification isn’t potential, signed ITR-V varieties have to be despatched to the Bangalore Income Tax Department inside 30 days of importing the tax return. Taxpayers can take cognisance of those key imperatives to make sure clean submitting of their tax returns, she mentioned.
