ITR Filing: 8 Lessons that first-time taxpayers should know before filing ITR for 2024
ITR Filing: 8 Lessons that first-time taxpayers should know before filing ITR for 2024
The income tax filing season is going on. By now, salaried employees should have received their Form-16 from their employers and be able to start submitting their income tax returns (ITRs). ITR e-filing has become easier and quicker, enabling people to finish it comfortably even from home. However, the procedure can be intimidating, particularly for those filing for the first time.
For those filing their ITR for the first time, consider these eight lessons:
1. Total Taxable Income
This is your total income from all sources, including your salary after any tax-saving deductions.
2. New vs. Old Tax Regime
Choose between the old and new regime in order to take advantage of lower tax benefits and deductions. To determine which option will reduce your tax liability, use online tax calculators.
3. Form 16
This TDS certificate from your employer details your salary, deductions claimed, and exemptions available, all of which are required to file your ITR.
4. Review of Form 26AS
This document summarises the income from which TDS has been deducted, which is essential for appropriate tax filing.
5. Annual Information Statement
Details such as interest income, dividends, securities transactions, and foreign remittances are pre-filled in your ITR form for convenience.
6. Choosing ITR Forms
- ITR-1 – Individuals who earn a salary, own a house property, and have other sources of income.
- ITR-2 – For individuals and HUFs with no business income.
- ITR-3 – For individuals and HUFs having business or professional income.
- ITR-4 – For presumptive income from business or profession.
7. Requirement of Documents
PAN card, Aadhaar information, investment evidence, home loan interest certificates, and insurance premium payment receipts.
8. ITR Verification
After filing, you can verify your return online using Aadhaar OTP or offline by forwarding a signed ITR-V form to CPC in Bengaluru within 30 days.
Deadline for ITR Filing
To avoid penalties, file your income tax returns by July 31 of every financial year. These key tips/lessons will assist first-time taxpayers complete their filings smoothly and accurately.