ITR filing by self in 2023: Changes on the e-filing website in the last few years have made it easy for anyone to file ITR without the help of any tax professional.
Here’s what you should do to prepare for ITR filing on your own this year. Representational image
ITR filing by self in 2023: Income Tax Return (ITR) filing on your own may seem complex, especially if you are doing it for the first time. However, changes on the e-filing website in the last few years have made it easy for anyone to file ITR without the help of any tax professional. The entire ITR process is easy, especially for salaried employees who do not have any other source of income apart from their salary.
While ITR filing for salaried employees for AY 2023-24 will start soon, the following are 5 things you should do to prepare for ITR filing on your own this year.
Gather All Necessary Documents
According to Abhishek Soni, co-founder and CEO of Tax2win, a Fisdom company, you will need various documents, such as Form 16, 26AS, AIS/TIS, bank statements, investment documents, rent receipts, etc., to file your ITR. Therefore, in the days before ITR filing start date, you should ensure to have all these documents in one place.
тАЬSelf-filers should obtain the relevant TDS certificates from the tax deductor and verify the relevant details. For instance, salaried taxpayers may verify the details of Form 16 with their monthly payslips. In case of any discrepancy, the deductee may request the deductor to furnish a new TDS certificate by way of furnishing a revised TDS return,тАЭ says Dr Suresh Surana, Founder, RSM India.
тАЬApart from the same, the taxpayers may download Annual Information Summary (AIS), Tax Information Summary (TIS) and Form 26AS from the Income tax portal and confirm the details with bank passbooks, etc and ensuring all the transactions are taken into consideration in the return,тАЭ he adds.
Also Read: Form 16 Issue Date for AY 2023-24: When will you get TDS certificate to file ITR for FY 2022-23?
Understand Your Sources of Income
Before you start preparing your ITR, make sure you have a clear understanding of all your sources of income, such as salary, house property income, business income, capital gain income, and other source income. This will help you fill out the correct forms and claim all the deductions you are eligible for.
Choose The Correct ITR Form
тАЬDifferent ITR forms exist for different types of income and taxpayers. Make sure you choose the correct ITR form based on your income sources and the category of taxpayer you belong to,тАЭ says Soni.
Compute Your Taxable Income
You should use Income Tax Calculator to compute your taxable income before filing ITR. (Check here)
тАЬUse your income and deduction details to compute your taxable income as per the income tax law provisions for the year. This will help you determine the amount of tax you owe or the amount of refund you are eligible for,тАЭ says Soni.
According to Dr Surana, taxpayers should also ensure that the payment of self-assessment tax is duly made along with the relevant interest as filing of tax return without payment of self-assessment tax would lead to such return being treated as defective.
Claim Deductions and Exemptions
Taxpayers should also ensure that they are claiming all the deductions and exemptions they are eligible for, such as those available under Section 80C, Section 80D, etc.
тАЬThis will help reduce your taxable income and lower your tax liability. Also, you should consider credit for TDS, TCS, advance tax, or any self-assessment tax paid by you,тАЭ says Soni.
Further, with effect from AY 2023-24, the new tax regime under Section 115BAC of the Income Tax Act would be the default tax regime. тАЬAccordingly, if the taxpayers intend to opt for the old tax regime, they may be required to comply with certain provisions such filing of prescribed form (similar to erstwhile Form 10IE) as may be notified by the CBDT,тАЭ says Dr Surana.
aniltikotekar4sme.com 