Time to file Income Tax returns

The Income Tax Department brought the Annual Income Statement (AIS) into practice in 2021. It contains details of almost all financial transactions of a taxpayer during a financial year. All the mentioned incomes have to be shown at the time of filing returns. Go through this report and inform the tax department, along with supporting documents, if there are any discrepancies.

Hyderabad:The Income Tax Department has been taking measures for quite some time to make the filing of IT returns easier. People, who have earned more than the tax-exemption limit, have to file the returns in the prescribed ITR form as per rules. The forms are already available on the Income Tax Department portal. These pre-filled forms need to be checked thoroughly to complete the process of filing returns. Before that, you need to garner all the income proofs and know what is to be done with it.

Form 16: It is an income tax form used by firms to give their employees information on the tax deducted. For instance, if your income in the last financial year (2021-22) is more than the tax exemption limit, then the form will show the details of tax deducted and also exemptions you claimed for the year. Already, some companies would have issued the same, while others would be giving it shortly. You need to just verify, whether the income mentioned in Form 16 matches the amount already filled ITR.

Form 16 A:It shows the TDS levied on income other than salary. For instance, if the earnings through interests on bank deposits are more than Rs 40,000, then it attracts TDS. In such cases, Form 16 A is issued. Mutual funds companies issue this form, if dividend payment exceeds Rs 5,000.

Proof of interest earnings: Gather proofs of interest earned on deposits made in banks, post offices and other financial institutions. The respective interests have to be shown separately in the ITR. Interest earned through savings accounts and fixed deposits is subject to tax as per rules. According to Section 80TTA, tax exemption can be claimed for interest earned on savings account up to Rs 10,000. If it goes beyond that, it will be included in the total income and tax has to be paid accordingly.

Annual income statement: In November last year, the Income Tax Department brought the Annual Income Statement (AIS) into practice. It contains details of almost all financial transactions of a taxpayer during a financial year. All the mentioned incomes have to be shown at the time of filing returns. Go through this report and inform the tax department, along with supporting documents, if there are any discrepancies.

Form 26AS:This form can be downloaded from the Income Tax website. It marks all the details of income earned and taxes paid during the last financial year. Match the TDS details in 26AS with the TDS certificates you have on hand.

Exemptions: People who have opted for the old system of income tax, have to keep proof of exemptions availed by them safely. Usually, you would have submitted all the related documents to your companies. Despite it, it is better to verify whether all these details are marked in Form 16. Whereas, tax-saving investments not disclosed to the company could be claimed at the time of returns.

Capital gains: Money earned from transactions like the sale of immovable property, shares and mutual fund units should be shown in the returns as capital gains. People who make money through capital gains should file returns in ITR-2 or ITR-3 instead of ITR-1.

Bank Accounts: Bank accounts maintained by taxpayers in 2021-22 should be disclosed in the returns. Even if these accounts are closed, they have to be mentioned in the returns.