5 Key Considerations for Filing Income Tax Returns of FY 22-23

As the ITR filing season for the financial year 2022-2023 begins, it is crucial to be aware of key considerations that can ensure a smooth and accurate filing process. In this article, we will discuss important points to keep in mind while filing your ITR.

 

1. Gather all relevant documents:

2. Choose the correct ITR form:

3. Understand applicable deductions and exemptions:

4. Include all income sources:

5. Reconcile TDS and tax payments:

 

1. Gather all relevant documents:

Before initiating the ITR filing process, ensure that you have collected and organized all necessary documents. These may include salary slips, bank statements, Form 16 or Form 16A (TDS certificates), investment proofs, property-related documents, and any other relevant financial records. Having these documents readily available will help streamline the filing process and minimize errors.

 

2. Choose the correct ITR form:

Selecting the correct ITR form is vital for accurate reporting of income and availing applicable deductions. The Income Tax Department provides different ITR forms based on various categories of taxpayers, such as individuals, HUFs, partnership firms, companies, etc. Carefully assess your income sources and eligibility criteria to determine the appropriate form for filing your ITR.

 

3. Understand applicable deductions and exemptions:

Familiarize yourself with the deductions and exemptions available under the Income Tax Act. These provisions can significantly reduce your taxable income. Some commonly utilized deductions include those under Section 80C (investment in specified instruments), Section 80D (health insurance premiums), Section 24 (interest on home loans), and Section 10 (exemptions on certain allowances).

 

4. Include all income sources:

Ensure that you accurately report all your income sources, including salary, business income, rental income, capital gains, and any other earnings. Non-disclosure or under-reporting of income can lead to penalties and legal consequences. Cross-verify your income statements, Form 16, Form 16A, and other relevant documents to ensure comprehensive reporting.

 

5. Reconcile TDS and tax payments:

Verify that the Tax Deducted at Source (TDS) as mentioned in your Form 26AS matches the TDS certificates received from various deductors. Discrepancies can lead to issues during the tax assessment process. Additionally, reconcile any advance tax or self-assessment tax payments made during the financial year to avoid any payment-related discrepancies.

 

Disclaimer:

The information provided in this blog is for general informational purposes only and should not be considered as professional advice. Choosing the right income tax advisor is crucial, especially given the frequent changes in tax rates and provisions. Additionally, the decision of whether to opt for the old or new tax regime can be confusing. Always consult with a certified tax professional or financial advisor for personalized advice tailored to your specific circumstances.