The deadline to file your Income Tax Return (ITR) is fast approaching. The last date for filing is 31st July each year.
The Income Tax Department has announced all the necessary ITR forms, with some major changes to a few forms.
To make the process easier, it’s important for taxpayers to be aware of these changes in advance. Here are some key points to remember while filing your return:
1. Choose the Right Form
The first step in filing your ITR is to choose the correct form. Different forms are designed for different types of taxpayers.
ITR 1 and ITR 4 are for small and medium taxpayers. These were notified on April 29.
ITR 7 is for trusts and charitable organizations and was notified on May 11.
If you’re unsure about which form to choose, you can always consult a tax expert.
2. Changes in Some Forms
This year, the Income Tax Department has made important changes to ITR 1 and ITR 4, especially when it comes to capital gains.
Salaried individuals and those under the presumptive taxation scheme, with long-term capital gains up to Rs 1.25 lakh, can now use ITR 1 and ITR 4 instead of ITR 2 (which was required earlier).
3. Choose the Right Tax Regime
The government gives taxpayers the option to choose between the new and old tax regimes.
Before filing your return, make sure to check which regime benefits you more.
Employers ask employees about the regime choice, but you can change your choice at the time of filing the ITR.
For example, if you told your employer you’ll use the old regime, but later find that the new regime is better for you, you can switch when filing your return.
4. Report All Income, Big or Small
It’s important to disclose every income, whether it’s large or small.
For example, many people think that interest from their savings account is too small to report.
However, experts recommend reporting all the interest earned on savings accounts.
If you fail to do so, it could lead to issues later.
These simple steps will help ensure that your ITR filing is smooth and without problems. Always remember to review everything before submitting your return!
