Filing income tax return? Key points to know before submitting ITRs

For financial year 2022-23 and assessment year 2021-22, the deadline to submit tax returns is July 31.

While the Income Tax Department provides pre-filled forms to help salaried individuals file their returns without any hassle, taxpayers, too, should keep all the required documents handy, and cross-check each field in the pre-filled forms. 

Individuals filing ITRs for the first time should keep the following key points in mind: 

1 Choose correct ITR form - For accurate filing, select the applicable form depending upon your residential status and income earned from various sources.  

2. New tax regime vs old tax regime:  For business owners, the tax regime, once selected, cannot be changed. However, individuals with income from salary, house and property can change their tax regime every year. 

3 Pre-filled ITR forms:The pre-filled information includes personal details, salary, dividend income, interest income, capital gains etc. 

4. Verifying prepaid taxes: It is crucial to verify prepaid taxes, including tax deducted at source (TDS), advance tax and self-assessment tax.  

5 Payment of balance taxes: After determining the total taxable income, applicable rates should be applied to calculate the total tax liability.  

6. Disclosure requirements: The assets and financial investments that should be disclosed.are. 

7. Balance taxes payment: Evaluate tax liability in advance, and make the necessary tax payments within the due dates. This will help you avoid levy interest applicable on delayed tax payments. 

8. Reporting exempt income: Agriculture income, exempt income of a minor, income not chargeable to tax as per Double Taxation Avoidance Agreement, etc., should be reported. 

9. Change in employment: If a taxpayer furnishes requisite income and salary details from his previous employer, to his current company, the latter can issue a consolidated Form 16 and 12BA, on the basis of which ITR can be submitted. 

10. On missing ITR filing deadline: In such a scenario, the taxpayer may face action under the Income Tax Act