Final Checklist before Filing ITR for FY 23-24

Key points to keep in mind before filing the ITR for FY 23-24

Filing an income tax return (ITR) is a crucial annual task for taxpayers, ensuring compliance with tax laws and facilitating smooth financial planning. As the Financial Year (FY) 2023-24 draws to a close, it is imperative to be well-prepared and informed before filing your ITR. Here are the key considerations to keep in mind:

1. Understand the Applicability and Deadlines

The due date for filing ITR for individual taxpayers (non-audit cases) is generally July 31, 2024. For taxpayers requiring an audit under the Income Tax Act, the deadline is typically October 31, 2024. Corporates and other entities may have different deadlines, usually aligning with their respective audit requirements. It is essential to be aware of these deadlines to avoid penalties and interest on delayed filings.

2. Collect important documents.

Having all the required documents is very important for filing your ITR entirely and correctly. Below is an inclusive list:

• Form 16/16A: TDS certificates are issued by employers and other deductors. Form 16 is a certificate that an employer issues outlining the details of your salary, income, and TDS deducted. On the other hand, Form 16A is a certificate issued for the TDS on income other than salary.
• Form 26AS: This is your annual statement of taxes, wherein all TDS, TCS, and advance tax deposited against the PAN are reflected. Check every entry therein to ensure it aligns with your records.
• Bank Statements and Passbooks: These are required to be kept to monitor the interest income being posted and other credits to your account.
• Interest Certificates from Banks and Post Offices: These are certificates that will give you a complete account of the interest earned by you on the savings accounts, fixed deposits, or other investments that you have made.
• Investment Proofs for Deductions: Documents supporting the taxpayer's investment in PPF, NSC, ELSS, and other tax-saving instruments under Section 80C, 80D, etc.
• Capital Gains Statements: You need detailed statements for all the investments you sold in the year to work out the short-term and long-term capital gains.
• Property Details and Rental Income Information: Include information on property owned, rent received, and interest on home loans.

3. Verify Form 26AS and AIS (Annual Information Statement).

Form 26AS and AIS are comprehensive sums of your income, taxes, and deductions paid during the financial year. These forms are very vital to making sure that your ITR is correct. Any discrepancies between the records and the forms should be communicated to the employers, banks, or other deductors for rectification.

4. Claim All Eligible Deductions and Exemptions

Maximize tax-saving opportunities: make sure you claim all eligible deductions and exemptions. Below is a more specific glance at standard sections:

• Section 80C: Deductions for INR 1.5 lakh are allowed for investments in PPF, EPF, NSC, life insurance premiums, tuition fees, and the principal repayment of home loans.
• Section 80D: Allows deductions for health insurance premiums, up to INR 25,000 for self and family and an additional INR 50,000 for senior citizen parents.
• Section 24(b): Deduction for interest paid on a home loan up to INR 2 lakh for self-occupied property.
• House Rent Allowance (HRA): An exemption can be claimed by salaried individuals for receiving HRA, provided they have any of the following: rent receipts and a rent agreement.
• Stay updated on the latest amendments and changes in tax laws to be sure you get updates available for FY 23-24.

5. Report all sources of income.

Make sure all sources of income are fully declared; these include:

• Salary and Pension Income: Your principal source of income, which should match the details in Form 16.
• Income from House Property: including rental income, less allowable deductions like property tax, and a 30% standard deduction for maintenance.
• Capital Gains: Through the sale of equity shares, mutual funds, property, etc., apply the correct tax rate for short-term and long-term gains and utilize exemptions available under sections 54, 54EC, and 54F, where applicable.
• Income from Other Sources: Any income such as interest, dividends, and lottery winnings other than salary and rent.
• Accurate reporting of all sources of income is critical to ensuring that you don't receive a notice and penalty from the Income Tax Department.

6. Reconcile payment of TDS and advance tax.

Match the TDS deducted by the employer, bank, and other deductors with the amount reflected in Form 26AS. Check for proper accounting of all advance and self-assessment tax payments made during the year. There could be demands and refund processing delayed because of such mismatches, leading to avoidable harassment.

7. Consider the New vs. Old Tax Regime

The Income Tax Act has given taxpayers the choice of either adopting the old tax regime, which will have all the deductions and exemptions, or the new tax regime, which will have lower tax rates but without most of the deductions and exemptions. You should consider the in-depth analysis of your income and investments to see whether you will benefit under which regime. Using online calculators, compare your tax liabilities under both regimes to arrive at the correct decision.

8. Monitor capital gains.

Compute short-term and long-term capital gains correctly if you have sold some capital assets, such as shares, mutual funds, or property. Take care to avail of the adequate exemptions in sections like 54 (capital gains from the sale of property), 54EC (investment in specified bonds), and 54F (investment in a residential house).

9. Report foreign assets and income

This calls for all taxpayers with foreign-based assets or income to include details in their ITR. This includes foreign bank accounts, financial interests, and immovable property outside the borders of India. Non-disclosure may attract significant penalties and legal consequences.

10. Double-check personal and bank details in the ITR.

Please make sure personal information, including your name, PAN, address, and bank account details, is correctly stated. Incorrect bank details can cause delays in receiving a refund. In addition, KYC details need to be updated with banks and other financial institutions.

11. E-Verification of the ITR After the ITR is filed

One should e-verify it within the stipulated time, which is generally 120 days from the date of filing. An applicant can e-verify his return using his Aadhaar OTP, net banking, or through a signed ITR-V to the Centralized Processing Center of the Income Tax Department. E-verification is very important after completing the filing process to avoid rejection of the ITR.

Conclusion

Filing the income tax return on time and in the proper manner is crucial to keeping yourself on par with the tax laws and out of legal complications. Take care to follow the above points, and you should be on your way toward smoothly and error-freely filing the ITR for FY 23–24. Get informed, organized, and proactive to avail yourself of the tax benefits and avoid the last-minute rush. All details astutely planned would thus yield significant tax savings, providing a hassle-free filing experience. After all, proper and timely filing is not only mandatory for compliance but also helps in better financial planning and management. The instructions show how taxpayers can make their process of filing an ITR hassle-free and according to the present law of taxation. Proper planning and attention to detail could mean valuable tax savings and a reasonably smooth process of filing taxes.