10 Tips for First Time Income Tax Returns Filer
If you’re a first-time income tax filer, here are some guidelines to help you through the process:
1. Understand your filing obligations: Determine if you need to file an income tax return based on your income, age, and other criteria as per the tax laws. Familiarize yourself with the income tax rules and regulations that apply to your situation.
2. Gather necessary documents: Collect all the relevant documents required for filing your return. These may include Form 16/16A, bank statements, investment proofs, rent receipts, and other supporting documents for income, deductions, and exemptions.
3. Choose the correct ITR form: Select the appropriate Income Tax Return (ITR) form based on your income sources, residential status, and other factors. Different ITR forms cater to different types of taxpayers, so make sure to choose the right form.
4. Accurately report your income: Provide precise details of your income from various sources, including salary, interest, rental income, capital gains, and any other income earned during the financial year. Double-check the figures and ensure they are reported correctly.
5. Claim eligible deductions and exemptions: Identify the deductions and exemptions applicable to you, such as those related to investments, insurance premiums, medical expenses, and education expenses. Claim all eligible deductions to reduce your taxable income.
6. Keep track of important deadlines: Be aware of the due dates for filing your income tax return. Filing your return within the prescribed time limits will help you avoid penalties and interest on any taxes due.
7. E-File your return: Consider filing your income tax return electronically through the Income Tax Department’s e-filing portal. E-filing is convenient, time-saving, and ensures accurate processing of your return.
8. Verify your return: After filing your return, it is crucial to verify it. You can choose to verify your return electronically using methods such as Electronic Verification Code (EVC) or Digital Signature Certificate (DSC). Alternatively, you can also choose to send the signed physical copy of the ITR-V to the Centralized Processing Center (CPC) within the specified timeframe.
9. Maintain records: Keep copies of all the documents, acknowledgments, and other relevant records related to your income tax return. These records will be helpful for future reference, verification, or in case of any queries from the income tax department.
10. Seek professional help if needed: If you find the process overwhelming or have complex income sources, consider seeking assistance from a tax professional or a chartered accountant. They can provide guidance, ensure compliance, and help you maximize tax benefits.
Remember, filing your income tax return accurately and on time is critical to fulfilling your tax obligations and avoiding any penalties or legal consequences.
Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].