Important Things to Consider Before Filing Your ITR for AY 2024-25
Filing your Income Tax Return (ITR) can be a seamless process if you are well-prepared. Here are some critical aspects to consider before filing your ITR for the Assessment Year (AY) 2024-25:
1. Choose the Correct ITR Form
• Ensure you select the correct ITR form based on your income sources (salary, business income, capital gains, etc.).
• Using the wrong form can lead to your return being considered defective.
2. Verify Form 26AS
• Form 26AS contains details of tax deducted at source (TDS), advance tax, and self-assessment tax paid.
• Cross-check Form 26AS with your income statements to ensure accuracy.
3. Collect and Organize Necessary Documents
• Salary Income: Form 16 from your employer.
• Interest Income: Bank statements, interest certificates from banks and post office.
• Investment Proofs: For claiming deductions under sections like 80C, 80D, etc.
• Home Loan Statements: For interest and principal repayment details.
• Capital Gains: Details of sale and purchase of assets, property, shares, etc.
4. Link PAN with Aadhaar
• As per the current regulations, linking PAN with Aadhaar is mandatory for filing ITR. Ensure this is done to avoid any issues.
5. Pre-Validate Bank Account
• Pre-validate your bank account on the income tax e-filing portal for hassle-free processing of refunds.
6. Review Tax Deductions and Exemptions
• Ensure you have claimed all applicable deductions and exemptions under sections 80C, 80D, 80E, etc.
• Consider deductions for investments, health insurance, education loans, and house rent.
7. Report All Sources of Income
• Include income from all sources such as salary, rental income, interest income, capital gains, and any other miscellaneous income.
• Non-disclosure of any income can lead to penalties and legal consequences.
8. Check for Carry Forward Losses
• If you have incurred losses in previous years, ensure they are carried forward to offset against current year’s income as per the Income Tax Act.
9. Double-Check Personal Details
• Ensure your personal details like PAN, Aadhaar number, address, email, and mobile number are correctly mentioned.
10. Choose Between Old and New Tax Regime
• Compare tax liability under both regimes (old and new) and choose the one that is more beneficial for you.
11. Pay Advance Tax or Self-Assessment Tax
• If your tax liability exceeds ₹10,000 after TDS and advance tax, ensure you pay self-assessment tax before filing the return to avoid interest penalties.
12. File Before the Deadline
• Avoid last-minute filing to prevent errors and penalties. The due date for individuals not subject to audit is 31st July 2024.
13. E-Verification of ITR
• After filing your ITR, complete the e-verification process within 30 days. This can be done through Aadhaar OTP, net banking, or by sending a signed ITR-V to the CPC.
14. Maintain a Copy for Records
• Keep a copy of the filed ITR and acknowledgment for future reference and compliance.
By considering these important aspects, you can ensure a smooth and accurate filing process for AY 2024-25. Proper preparation and timely action can help you avoid penalties, ensure compliance, and potentially maximize your tax benefits.