Things to Remember while filing Income Tax returns for FY 2023-24

Filing Income Tax Returns (ITR) can be confusing and time-consuming when not done methodically.

First few points to remember

Here are a few points to remember to aid everyone’s return filing process.

• Due Dates: The first thing to ascertain is the date by which the return is required to be filed. Submitting after the due date will attract:
• Penalty for late filing u/s 234F - Rs 5,000 maximum.
• Interest u/s 234A for a delay in payment of tax - 1% per month or part thereof on tax due until the payment of taxes.
• Not filing the return on the due date also means giving up the benefit of setting off and carrying forward losses in certain cases.
• Notice or Penalty by Income tax officer and Prosecution in extreme cases.

Various due dates

The various due dates are listed below:

Verifying Personal Information

Verifying personal information like PAN, Aadhaar, Address, Contact information etc is recommended. PAN and Aadhaar are to be linked. Any communications received by the Income tax department will be on the registered email and address, so it is advised to check all these details. Another important thing to check at this juncture is the Bank Account details. It is crucial to provide accurate and up-to-date bank account details to enable refund processing. Check

• Account Number
• Bank Name
• Branch Name
• Indian Financial System Code (IFSC)
• Account type-Savings or Current
• Account holder name.
• Depending on the ITR form being filled, the bank details required may vary.
• Bank Account details are required to be pre-validated in the profile either through an OTP or EVC(Electronic Verification Code). Demat Account details are required to be pre-validated as well if the taxpayer is planning to e-verify the return through this means.

Choose the right ITR Form

To begin the filing process, one must figure out exactly which form out of the 7 is applicable. Here are the ITR forms and who they apply to:

Declare all Income and Claim all Deductions

Gather all the relevant supporting documents like Form-16, Bank Statements, TDS Certificates, Investment proofs etc. It is essential to include income from all the various sources in the ITR. One of the common items people miss including is Bank Interest earned.

• It is good to research about the various heads and other details to be included in an ITR form at this point. They are as follows:

1. Income from Salary
2. Income from House Property
3. Capital Gains
4. Profits or Gains from Business or Profession
5. Income from Other Sources
6. Chapter VIA Deductions
7. Exemptions under Section 10

• For Salaried Individuals - the various allowances like Leave Travel Allowance, House Rent Allowance etc that are allowable to them must be availed without fail. As well as the Section 80 deductions like contribution to NPS etc. Scrutiny of Form 16 and Form 16A is necessary to ensure no item has been missed. For more details - click here.
• For Businesses - Filing returns for businesses can be more extensive as there are a lot of things to keep in mind. A business can declare income on a presumptive basis under Section 44AD, 44ADA or 44AE. Businesses that qualify for Tax Audit under Section 44AB will require a Tax Audit Report to be filed. Businesses also need to reconcile their gross receipts and payments in the books of accounts, as per GST returns(if applicable) and Form 26AS where TDS has been deducted.
• For Senior and Super Senior Citizens - if it is applicable senior citizens and super citizens need to submit form 15H on a timely basis to avail the benefit while filing ITR. Senior citizens and Super citizens should ensure that they declare income under all the sources of income that have been earned and also the various reliefs that can be availed under the Income Tax Act. For more details - click here.

Reconcile with Form 26AS and AIS

The person filing the return has to reconcile the information in the ITR with that in 26AS and AIS to ensure accuracy and completeness. So it is essential to cross-verify the following details:

• Form 26AS - provides a comprehensive view of the transactions by a taxpayer concerning:

1. Tax Deducted at Source (TDS)
2. Tax Collected at Source (TCS)
3. Advance Tax / Self-Assessment Tax / Regular Assessment Tax deposited
4. Refund received during a financial year (if any)
5. Details of any Specified Financial Transactions (SFT) (if any)
6. Details of Tax Deducted on sale of immovable property u/s194IA (in case of seller of such property)
7. TDS Defaults (if any)
8. Information relating to demand and refund
9. Information relating to pending and completed proceedings

• AIS - The Annual Income Statement is a comprehensive view of information for a taxpayer displayed in Form 26AS. In addition to the TDS/TCS details, AIS will also show income from interest, dividends, stock market transactions, mutual fund transactions etc. Components of AIS:

1. PART A- General Information : Displays general information pertaining to you, including PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address and address of Taxpayer.
2. PART B - TDS/TCS Information

• Information related to tax deducted/collected at the source is displayed here. The Information code of the TDS/TCS, Information Description and Information value are shown.
• SFT Information: Under this head, information received from reporting entities under Statement of Financial transaction (SFT) is displayed. The SFT code, Information Description and Information value are made available.
• Payment of Taxes: Information relating to the payment of taxes under different heads, such as Advance Tax and Self-Assessment Tax is shown.
• Demand and Refund: You will be able to view the details of the demand raised and refund initiated (AY and amount) during a financial year. (Details related to Demand will be released soon).
• Other Information: Details of the information received from the other sources, such as data pertaining to Annexure II salary, Interest on refund, Outward Foreign Remittance/Purchase of Foreign Currency etc. are displayed here.

Rechecking and Documentation

Before filing the return it is suggested to scan the form completely to ensure nothing has been missed or filled incorrectly. It is also a good practice to keep a copy of the ITR form, Acknowledgement and various supporting documents.

Verification of ITR

Once the ITR has been successfully submitted the taxpayer or assessee is required to verify the return. This is to be done within 30 days of filing the return. Upon verification of the ITR, an Acknowledgment form is generated. Here are the ways to verify ITR:

• E-Verification Through Aadhaar OTP: One of the simplest methods is to use the Aadhaar OTP (One-Time Password) for e-verification. This OTP is sent to your registered mobile number linked with Aadhaar. You can enter this OTP on the e-filing portal to verify your return.
• E-Verification Through Net Banking: If your bank is one of the banks linked for net banking-based e-verification, you can log in to your net banking account and follow the e-verification process on the income tax e-filing portal.
• E-Verification Through Bank Account: Some banks offer the facility to verify your ITR directly through your bank account. You can log in to your bank account through the income tax e-filing portal for e-verification.
• E-Verification Through Demat Account: If you have a demat account, you may be able to use it for e-verification. This option is available for certain demat account holders.
• E-Verification Through Electronic Verification Code (EVC): Generate EVC through the income tax e-filing portal. The EVC is sent to your registered mobile number or email. Enter the EVC to verify your return.
• E-Verification Through Bank ATM: Some banks provide the option to generate EVC using their ATMs. Visit the ATM, select the option to generate EVC, and use it for verification.
• Paper Verification (By Sending Signed ITR-V): After filing the return, download the ITR-V (Acknowledgment) form, sign it in blue ink, and send the physical copy to the Centralized Processing Centre (CPC) within 30 days of e-filing. The address is mentioned on the ITR-V.
• Using DSC (Digital Signature Certificate): If you have a Digital Signature Certificate, you can sign the ITR using the DSC to complete the verification process.

Filing an Income Tax Return can be tackled if one is organized, well-informed and patient. Of course, you can also seek help from CAs, Tax Consultants, Online Filing Platofirms and Income Tax practitioners. In any case, it is best to proceed with caution. ITR filing is an important responsibility ensuring compliance with laws and regulations that impact taxpayers and the country as a whole.