Owing to the ongoing pandemic, the last date for filing income tax return (ITR) has been extended to 30th November 2020, for the 2019-2020 financial year. However, it is always advisable to file your ITR before the due date if you want to avail of advantages such as carry forward of losses and other tax benefits.
To make the entire process smoother, here are a few tips to remember when filing your income tax return before the due date.
Choose the right form for filing your income tax return
The first and most important thing to remember while filing income tax return successfully is to use the right ITR form. Many taxpayers tend to use the ITR-1 or Sahaj Form as it is comparatively less complicated and easier to fill. However, depending on your situation, you might be required to use a different form. Following is a quick overview of which form you should use:
ITR-1 or Sahaj: Use this form if you earn an income exceeding 50 lakh rupees from salary, pension income from single house property, or other sources such as interest on investments.
ITR-2: Use this form if you earn income from salary, capital gains, pension income from more than one house property, income from foreign assets and investments, or other sources.
ITR-3: Use this form if your primary income is earned from a business or profession or as a partner in a firm along with the incomes mentioned for the ITR-2 form.
Apart from these 3 commonly used ITR forms, there are 4 more forms available too. So, determine which one is applicable for your situation and fill it out accordingly.
Check Form 26AS for TDS and other tax details
When filing an income tax return, Form 26AS is used to detail all the tax deductions from your income that have been deposited against your PAN during the respective financial year. You can download and check Form 26AS online to ensure that tax details such as TDS on interest and other incomes have been reflected in your PAN. If you find any discrepancies with the same, notify the relevant tax authorities and get them rectified if you want your ITR to be filed and verified before the due date.
Determine the tax deductions that you are eligible for
While this may seem like an elementary step to most, there are some taxpayers in the country who are not fully aware of the tax deductions that they can avail under relevant sections of the Income Tax Act, 1961. So, make sure that you receive the tax benefits that you are entitled to when filing an income tax return before the due date.
Verify your ITR online
Once you have filed your income tax return, you need to verify the same either through online or offline means. E-verification of ITR is generally advisable as it is an amazingly simple and convenient process as compared to other offline means. Online verification of ITR can be completed either by receiving an electronic verification code (EVC) through the Government’s e-fling portal, an EVC generated through an ATM, or by receiving an Aadhaar-based one-time password (OTP).
The extension of the income tax filing date has indeed brought some respite for worried taxpayers in the country. All the same, it is important to remember that filing your ITR before the deadline helps you avoid paying late filing fees while offering certain other benefits too.