7 Must-Know Tips for Hassle-Free Income Tax Return Filing
As the July 31 deadline for filing your Income Tax Return (ITR) draws near, the pressure to meet the due date can feel overwhelming—especially if you’re yet to begin. To avoid penalties or mistakes from hasty filing, it’s crucial to plan and act in time. But even if you’re late to start, don’t panic. Here are seven practical tips to help you file your tax return smoothly and accurately.
1. Accurately Compute Your Taxable Income
Go beyond your salary or business earnings—include all other sources such as interest from savings or FDs, rental income, capital gains, dividends, and any foreign income. Don’t forget to report capital losses as they can offset gains and lower your taxable income. Unused losses can also be carried forward for up to eight years. Use capital gain statements from your broker or mutual fund provider to calculate gains or losses correctly.
2. Claim All Eligible Deductions and Exemptions
Take full advantage of deductions available under the Income Tax Act—like Sections 80C, 80D, and 80G. Don’t miss smaller benefits such as Rs. 10,000 deduction on savings interest or preventive health check-up expenses up to Rs. 5,000.
3. Cross-Check Form 26AS and AIS
Access your Form 26AS and Annual Information Statement (AIS) through the income tax e-filing portal. These forms give a summary of TDS, TCS, property transactions, mutual fund investments, dividends, and more. Ensure all entries match your Form 16, bank statements, and investment records to avoid any mismatch or rejection.
4. Choose the Right ITR Form
The Income Tax Department offers various forms (ITR 1 to ITR 7), each designed for different taxpayer categories and income types. For instance, ITR 1 is for individuals earning up to ₹50 lakh from salary, one house property, and other sources. ITR 2 suits individuals and HUFs not earning from business or profession, while ITR 3 is for those who are.
5. Keep All Required Documents Ready
Ensure all important documents are in place—PAN, Aadhaar, Form 16, 26AS, AIS, investment proofs, advance tax receipts, and TDS certificates. Having them ready in advance will save time and reduce errors during filing.
6. Double-Check Your Bank Account Information
Make sure your bank account details—such as account number, IFSC code, and account holder name—are accurate and pre-validated on the income tax portal. Incorrect details can lead to delays or failures in receiving any eligible tax refunds.
7. Don’t Miss Verifying Your ITR
Filing isn’t complete until your return is verified. Ensure you verify your ITR within 30 days of submission. You can do this quickly online using Aadhaar-based OTP or by sending the signed ITR-V acknowledgment to the Income Tax Department’s Central Processing Centre in Bengaluru via post.
By carefully following these seven steps, you can simplify the ITR filing process, avoid costly mistakes, and ensure your tax return is processed smoothly and on time.
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FAQs
1. What is the last date to file Income Tax Return for individuals?
The due date for filing ITR for individuals (non-audit cases) is usually July 31 of the assessment year. Filing after this date may attract late fees and interest.
2. What happens if I miss reporting certain income sources?
Omitting any income—like interest from bank accounts, capital gains, or rental income—can lead to notices from the Income Tax Department and may attract penalties or reassessment of your return.
3. Which documents should I keep ready before filing ITR?
Essential documents include:
- PAN & Aadhaar card
- Form 16 (for salaried individuals)
- Form 26AS & AIS
- TDS certificates
- Proof of investments (for deductions)
- Advance tax or self-assessment tax payment receipts
4. How can I check if I’m using the correct ITR form?
Your income source determines the appropriate ITR form. For example, salaried individuals with income under ₹50 lakh generally file ITR-1, while those with capital gains or multiple properties may need ITR-2 or ITR-3. Refer to the instructions on the Income Tax India portal for guidance.
5. What is the penalty for filing ITR after the due date?
A late filing fee of up to ₹5,000 may apply under Section 234F. Additionally, interest under Sections 234A, 234B, and 234C could be levied on unpaid taxes. We provide the best income tax return filing services!
6. Is it mandatory to verify the ITR after submission?
Yes, your ITR must be verified within 30 days of filing to complete the process. Failing to verify will render the return invalid.
7. Can I file my ITR without Form 16?
Yes, you can file your return even without Form 16. Use your salary slips, bank statements, and Form 26AS to calculate income and tax deductions. We provide the best income tax return filing services!
8. How do I know if my bank account is pre-validated for a refund?
Log in to the Income Tax portal and check under the ‘Profile Settings’ → ‘My Bank Account’ section to view or validate your bank account details. We provide the best income tax return filing services!
9. What if I make a mistake while filing my ITR?
If you realize an error after filing, you can revise your return using the ‘Revised Return’ option under Section 139(5) before the end of the assessment year. We provide the best income tax return filing services!
