Online Filing of Income Tax Return For FY 2023-24: Even as e-filing of ITR-1, ITR-2 and ITR-4 has been enabled by the income tax department, taxpayers can now file their ITR for the financial year 2023-24 (or AY 2024-25). However, an income tax expert suggested key things you need to keep in mind while filing the ITR.
Divya Baweja, partner at Deloitte India, said, “As the financial year 2023-24 has ended, taxpayers are gearing up for filing their tax returns by the due date. To facilitate a smooth process, several key aspects must be kept in mind by each taxpayer.”
Choose Appropriate Form
Baweja said taxpayers should choose the appropriate return form based on their residential status and income sources.
Currently, the income tax department has enabled online ITR filing for ITR-1, ITR-2 and ITR-4.
ITR-1 is filed by individuals, including salaried class and senior citizens.
Though the ITR-1 online is now available for filing, salaried individuals will be able to file the income tax return after Form-16 is available to them from their company.
ITR-2 is filed by businesses and professionals who have opted for presumptive taxation and those individuals whose annual income doesn’t exceed Rs 50 lakh.
ITR-4 is for resident individuals, HUFs and firms (other than LLP) having total income up to Rs 50 lakh and having income from business and profession which is computed under Sections 44AD, 44ADA or 44AE and agricultural income up to Rs 5,000.
Declare Income Accurately
All incomes, including salary, rent, capital gains, interest, dividends, etc, must be declared accurately, with appropriate cross-checking against relevant documents, she said.
Choose Between Old Regime Vs New Regime Carefully
The Deloitte partner said it is crucial to decide between the old and new tax regime, based on whichever regime is more beneficial.
In the old income tax regime, income up to Rs 2.5 lakh is exempt and further deductions are available on certain investment and savings, which can reduce tax liabilities. However, under the new tax regime, income up to Rs 5 lakh is exempt, without any further deductions.
Report Assets, Liabilities
Baweja said reporting of specified assets and liabilities is mandatory for all individuals with total income exceeding Rs 50 lakhs, Resident and Ordinarily Residents require to additionally report overseas assets.
Reconciling tax deductions and advance tax payments is essential to determine self-assessment tax, wherever payable, since settlement of tax liability is a must prior to filing of the tax return.
Complete E-Verification Process
After filing of the income tax return, completing the e-verification process is necessary for validation. If e-verification isn’t possible, signed ITR-V forms must be sent to the Bangalore Income Tax Department within 30 days of uploading the tax return. Taxpayers can take cognisance of these key imperatives to ensure smooth filing of their tax returns, she said.
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