Income Tax Return
Updated on July 18, 2023
Income Tax Return (ITR) refers to the formal document or form that taxpayers are required to file with the Income Tax Department to report their income, deductions, and tax liability for a specific financial year. It serves as a declaration of their income and allows the government to assess and collect the appropriate amount of income tax from individuals, businesses, and other entities.
Points to consider while filing ITR
Filing deadline – Taxpayers should be aware of the due date for filing their Income Tax Return, which is typically July 31st of the assessment year for most individuals.
Correct ITR form – Choosing the correct ITR form based on their income sources, such as salary, business income, or capital gains, is crucial to ensure accurate reporting.
Income sources – Taxpayers should accurately report all their sources of income, including salary, interest, rental income, dividends, and capital gains, ensuring compliance with tax laws.
Deductions and exemptions – Claiming eligible deductions under various sections of the Income Tax Act, such as Section 80C for investments, can help reduce the taxable income and overall tax liability.
Reporting bank accounts and assets – Furnishing details of all bank accounts, including foreign accounts, as well as information on immovable properties and other assets, is important to comply with the reporting requirements.
TDS and other tax payments – Ensuring that tax deducted at source (TDS) by employers or other entities is correctly reflected in the ITR, and reconciling any additional tax payments made during the year.
Rectification and response to notices – Timely response to any notices or discrepancies identified by the Income Tax Department and rectifying any errors in the filed ITR, if required.
Audit and disclosure requirements – Individuals and businesses meeting specific income thresholds are required to undergo tax audits and disclose additional information in their ITR forms, as per the applicable provisions.