Verify pre-file data carefully before filing income-tax return

The income-tax department now provides pre-filled forms filing income-tax returns. (ITRs), which simplifies the process. However, it is important to have the necessary documents on hand to verify the information in the form.

Although there is no requirement to uploaded documents initially, they may be required if an assessing officer investigates. “Keep all relevant documents organised and readily accessible. This will make the filing process smoother and help you avoid missing out on any deductions or inaccuracies in your return.”

Form 16, 16A, and other certificates 

Form 16 is a tax deducted at source (TDS) certificate issued by the employer. Form 16A is a certificate issued by the deductor for TDS on income other than salary. Other TDS certificates include Form 16B for TDS on the sale of property and Form 16C for TDS on rent, etc.

“Check if the TDS certificates reflect the correct amount of tax deducted and if they match the details mentioned in your bank statement and other relevant documents. Ensure that all the TDS certificates are included in your tax return to claim credit for the taxes deducted.”

   Employees should check that Form 16 is digitally signed and that Part A and B are filled correctly. “The assesses should verify that the TDS certificate has been shared by the employer/ another deductor after downloading it from the TRACES portal.”

Interest income and other interest certificates

It is important to collect interest certificate from banks, and post offices, to avail of exemptions under Sections 80TTA and 80TTB. An amount exceeding Rs 10,000/- or Rs. 50,000/-, as the case may be, is taxable in the hands of the assesses. “It is crucial to report all interest income while filing tax returns and keep the interest certificates safely for accurate reporting.”

Note that from 2021-22 financial years FY22, if the interest earned on Employee Provident Fund (EPF) contributions exceeds Rs 2.5 lakh, which is taxable.

Form 26AS

This is a statement that contains all the details of the tax deducted and deposited against your Permanent Account Number or PAN with the government. ”Check if the TDS mentioned in Form 26AS matches the TDS certificates you have received. Cross-check other financial transactions mentioned in Form 26AS to ensure they are correctly reflected in your tax-return.”

Form 26AS can be downloaded through the TRACES portal after logging into the I-T audit.

Annual information statement

The Annual Information Statement (AIS) provides a more detailed view of the information contained in Form 26AS. All the relevant information in the AIS gets pre-filled in the ITR form. “AIS, being a comprehensive statement of taxpayer’s financial transactions that have been reported to the I-T Department, are other important documents that can be referred to while filing ITR to ensure the accuracy of ITR.”

AIS can be downloaded from the I-T portal after logging into the account. The AIS contains information on TDS, tax collected at source, 53 specified financial transactions, and other taxes paid. If there is any error in the AIS or a particular income reflected in the AIS does not relate to the taxpayer, she should report this online.

Investment proof and capital gains details

Individuals can claim tax-savings investment if they opt for the old tax regime. Tax savings are declared and submitted to employers, but if missed, they can still be claimed on ITRs. “ If donations have been made to eligible charitable organisations, collect receipts or certificates in Form 10BE.”

A Form 10 BE is proof of Section 80G deductions.”Apart from this, capital gains earned from the sale of property, shares, and mutual funds have to be reported while filing ITR.”

Keep records of purchase cost, sale proceeds, and expenses (brokerage fees, stamp duty, legal fees).

DETAILS TO BE KEPT HANDY

Bank account details: It is mandatory to provide details to the bank account held by an assesses.

Investment in unlisted shares: Details like date of purchase, face value of shares opening and closing balance, etc.

Aadhaar number: An individual’s is required to quote his/her Aadhaar Number while filling an ITR.

Monthly salary slips: The salary slip amount deducted from your salary and deposited into your salary and deposit into your Employees Provident Fund (EPF) Account.

Interest and principal payment statement for a home loan: The principal amount gets a deduction under Section 80C. The interest on your home loan gets tax benefits under Section 24.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 8882286639