Filling out your Income Tax forms might seem hard, especially if you wait until the last moment. Many people end up doing this, but it can be stressful. However, if you plan carefully and pay close attention, you can still do it well and avoid making mistakes.
Keeping up-to-date with the latest tax laws and practices is crucial, and that’s where taxation books come in handy. They offer comprehensive insights into new tax regulations, provide examples of navigating complex tax situations, and can significantly reduce the anxiety of last-minute tax filing. This blog will give you some important tips for filing your ITR at the last minute.
By staying informed through these books, you can ensure that you are not missing out on any new tax deductions or credits and are fully aware of your obligations and opportunities under the current tax laws. This blog will help you make sure you fill out the forms correctly. Some of the tips include checking your income statements, making sure your tax details are right, and choosing the right tax form.
Choose the right ITR form
The CBDT has released 7 ITR Forms (ITR-1 to ITR-7) for filing of return of income. Select the correct ITR form based on your income sources and category.
For example, ITR 1 is to be used only for resident individuals (excluding HUF) with total income comprising salary, pension, one house property’s income or loss, family pension, and income from other sources except those taxed at special rates.
Reconcile your income with AIS
Before rushing to file your tax return, take the time to reconcile your income with your Annual Information Statement (AIS). The AIS provides a comprehensive overview of your income, including details of tax deducted at source (TDS), interest income, specified financial transactions, payment of taxes, demand, refund and any other income reported to the Income Tax Department.
Reviewing AIS ensures that you report all sources of income accurately, minimizing the risk of discrepancies or notices.
Ensure the TDS amount matches with Form 26AS
Verifying that the TDS amount deducted by your employers, banks, or other entities matches the figures reflected in your Form 26AS is crucial. Any disparities should be addressed promptly by contacting the deductor to rectify the error or adjusting the TDS amount while filing your tax return.
Failure to reconcile TDS figures could result in unnecessary tax demands or delays in refund processing.
Verify ITR within 30 days
After filing the ITR online, don’t forget to verify it within 30 days to complete the return filing process. Verification of Income-tax Returns can be done electronically using methods such as Aadhaar OTP, electronic verification code (EVC) or by using Digital Signature Certificate (DSC).
One can also send a signed copy of ITR-V, i.e., acknowledgement, to ‘Centralized Processing Centre, Income Tax Department, Bengaluru 560500’ by an ordinary post or speed post.
Failing to verify the return within the stipulated timeframe may render the ITR invalid.
Consequences of furnishing tax returns beyond the prescribed due date
It is advisable that you file the ITR within the due date prescribed under the Income Tax Act. Various deadlines are outlined for different types of taxpayers. Failure to file the ITR by the due date results in the following consequences:
Late Filing Fees:
Remember that filing tax returns after the deadline attracts late filing fees under Section 234F of the Income-tax Act. The fee for furnishing a return of income after the due date is Rs. 5,000. However, if the person’s total income does not exceed Rs. 5,00,000, the fee payable shall not exceed Rs. 1,000.
No carry forward of losses
Delays in filing tax returns can also result in the loss of the option to carry forward the losses, namely, losses from business, capital gains, etc. If returns are filed after the due date, these losses cannot be carried forward to subsequent years for set-off against future profits.
Interest on refund allowed for a shorter period
If an Income-tax refund is due to an assessee and he files the Income-tax return on or before the due date, interest on the refund amount shall be calculated from April 1 of the relevant Assessment Year. However, if the return is furnished after the due date, interest on the refund will be calculated from the actual date of filing of the return.
In conclusion, it’s evident that last-minute tax filing can be quite a hustle, yet with thoughtful preparation and the right resources, it’s manageable and can be done accurately. The significance of understanding and applying the latest tax laws cannot be overstated, and leveraging quality tax books is a wise strategy to stay informed and compliant.
Think of Taxmann as your go-to place for finding tax books. By integrating the insights and guidelines provided here, you can enhance your tax filing process, potentially maximizing your returns and minimizing errors, especially when you’re against the clock, the right approach and resources can significantly ease the process.
Stay informed, stay prepared, and use the tips shared in this blog to navigate your tax filing successfully. Here’s to a smoother tax season, even at the eleventh hour!
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.
