With the deadline of July 31 to file income tax return (ITR) approaching fast, taxpayers are expected to be scurrying around to arrange the information required to file the return.
Although it is advisable to file your tax return as soon as possible, it is not recommended to do it sans proper home work. For instance, one should know the correct income tax form to fill, the right tax regime to opt for, and link your aadhaar to PAN if you have yet not done it.
Some of the key points taxpayers should be aware of:
1. Online forms: The income tax department has already released the online and offline utility of all the income tax forms for financial year 2023-24. These include ITR-1, ITR-2, ITR-3, ITR-4 and ITR-6. Choosing the right form is crucial, so you must first see which form is the right form for you.
For instance, ITR-1 is meant for individuals who are resident (other than not ordinarily resident) having total income up to ₹50 lakh, who have income from salaries, one house property, other sources (interest etc), and agricultural income up to ₹5,000.
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2. Active account: You need to have a registered ID on income tax e-filing portal and an active PAN card to be able to file your tax return.
3. Offline utility: Although it is advisable to file the income tax form online, one can also file the form offline using the offline utility. The utility can be downloaded from the ‘downloads’ section from the portal.
4. Link Pan to aadhaar: Recently, income tax department (ITD) shared a social media post stating that taxpayers should link their PAN with aadhaar before May 31.
If they have not done it, they should do it to avoid tax deduction at a higher rate. For this, they can refer to the CBDT circular number 6/2024 dated April 23, 2024.
5. Choosing a tax regime: It is important to note that you have to opt for the old tax regime in case you want to avail tax exemptions that are missing in the new tax regime. Since the new tax regime is the default regime, taxpayers must opt for the old regime if they want to pay their income tax, as per the old provisions.
ALSO READ | Income Tax: Want to opt out of the new tax regime? Here is a step-by-step guide
6. Tax calculator: Taxpayers can fill in their income details to determine which regime is more beneficial by using tax calculator which can be accessed here. It gives a comparative analysis between the two tax regimes.
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Published: 29 May 2024, 09:00 PM IST
