Every year, on July 31, individual assessees need to file their Income Tax Returns (ITRs) if their total taxable income during the financial year is above the basic exemption limit. This limit varies for taxpayers across different age groups, as shown below.

 

Age of the taxpayer

Basic exemption limit

Below 60 years of age

Rs. 2.5 lakhs

60 years or above, but below 80 years

Rs. 3 lakhs

80 years or above

Rs. 5 lakhs

 

So, if your total taxable income is above the limits specified above, you need to file your Income Tax Returns before July 31, 2022. To make this easier for you, we’ve prepared a quick checklist of sorts. Take a look at what you need to do to make your ITR filing easier this year.

 

A quick checklist for your ITR filing

By July 31, 2022, you need to file your ITR for the financial year 2021-22, which ranges from April 1, 2021 to March 31, 2022. This essentially gives you four months from the end of the financial year to prepare for your ITR filing. But it’s possible that you may have some essential things pending.

 

Check out the important things you need to take care of before filing your tax returns this year.

 

1.  Link your Aadhaar with your PAN

The Indian government has been repeatedly reminding taxpayers to link their Aadhaar card with their PAN. If you have not done this yet, you need to ensure that this process is completed before you file your ITR this year. By linking your Aadhaar and PAN, it becomes easier to verify your ITR after filing it.

 

The last date for linking your Aadhaar with your PAN has been extended to March 31, 2023. So, ensure that you get this little task taken care of soon, so your PAN is not inactivated.

 

2.  Keep your documents ready

There are many documents that you need to have handy if you want to fill in and file your ITR on time. The list of paperwork needed for different purposes can vary. Here is a broad overview of some of the main documents you need to have, based on your income category and the tax benefits you want to claim.

 

Check out the categories that pertain to you, so you can prepare accordingly.

 

Category

Document Needed

Details

If you have salary income

Form 16

This document has details of your salary breakup and tax deducted, making it easier to fill in these details in the ITR.

Rent receipts

If your salary includes a House Rent Allowance (HRA) component, you need to have your rent receipts to claim the deductions available.

Pension certificate

Your pension certificate is proof that you are the legal eligible recipient for the pension paid out.

If you have income from other sources

Bank passbook or interest certificate

This helps you track and enter the details of the interest you receive from your savings account and/or deposits.

Dividend warrant

This document contains details of the dividends you received during a financial year.

If you have income from capital gains

Purchase and sale deed of your property or other capital asset

These documents help you prove the purchase and sale prices you enter in your ITR

 

Cost of improvement

In case of any immovable property, if you have any improvement expenses you’re claiming, these documents act as the required proof

If you are claiming deductions under Chapter VIA of the Income Tax Act, 1961

Life insurance and health insurance premiums

These documents serve as proof of your life and health insurance costs, so you can claim the deductions available under section 80C and 80D respectively

Home loan EMI receipts

You can claim your home loan principal as a deduction under section 80C too, so these receipts can help you claim the right amount

Other investment proofs

If you have proof of other eligible investments, like ELSS, tax saver FDs etc., keep them handy too.

 

Keep in mind that you do not need to submit any of these documents with your ITR. Having them ready helps you fill in the details of your return faster and more accurately.

 

3.  Check your Annual Information Statement (AIS) and Form 26AS

You can easily download both the Form 26 and the Annual Information Statement (AIS) from the income tax website online. Your Form 26 contains all the details of your TDS, TCS and advance tax payments. This document is essential if you want to claim a tax refund. You also need to ensure that there is no mismatch between the Form 26 and your ITR.

 

As for the Annual Information Statement (AIS), it is a comprehensive statement that contains all the details of your financial transactions during the year. It contains the details of all your income, and you can use this as a benchmark to fill in your ITR.

 

4.  Know which ITR to file

Lastly, you need to know which ITR to file. Filing the wrong Income Tax Return is not advisable, since your return will be considered defective. Here is an overview of which ITR form will be applicable to you, based on your income sources.

 

ITR Form

Applicability

ITR-1 (SAHAJ)

Applicable if you have —

  • Salary or pension income
  • Income from one house property
  • Income from other sources like interest, family pension and dividend
  • Agricultural income up to Rs. 50,000

ITR 2

Applicable if you are not eligible for ITR-1, and do not have any income under the head Profits and Gains of Business or Profession

ITR 3

Applicable if you have income under the head Profits and Gains of Business or Profession, and are not eligible for ITR-1, 2 and 4

ITR-4 (SUGAM)

Applicable if you have income from business or profession, calculated on a presumptive basis, along with the following income —

  • Salary or pension income
  • Income from one house property
  • Income from other sources like interest, family pension and dividend
  • Agricultural income up to Rs. 50,000

 

Conclusion

This sums up the checklist that you need to take care of to file your taxes correctly by July 31, 2022. If you are unsure about some of the processes involved in filing your ITR, you can always reach out to a tax expert to make things easier and clearer for you. Once you understand the basis, you can easily file your taxes on your own, without any trouble.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.