Income Tax Return (ITR) filing is compulsory for individuals earning a specified amount of income in a year. The process of filing an I-T return online is known as e-filing.

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The deadline to file ITR for FY 2020-21 has been extended to September 30, 2021, in view of the difficulties arising due to COVID-19. This means taxpayers have more time to file ITR.

Here are key things to keep in mind while filing ITR:

Choosing the right ITR form

There are different forms prescribed for different types of taxpayers. For example, ITR-1 is applicable only for resident individuals having income up to Rs 50 lakh and only for those having income from salary, one house property and other sources.

Also read: How to file ITR on new income tax portal?

Similarly, there is ITR-3 which is applicable for income from business or profession and ITR-4 for the presumptive method of taxation such as for freelancers.

So, one should be careful while choosing the ITR form. A wrong form can render the tax return filed defective and the taxpayer may receive a notice to file the return once again.

Using new utility named JSON

The tax department has recently introduced a new utility named JSON for filing tax return forms. The same has been released for ITR 1, 2 and 4.

These forms can import and pre-fill data from the e-filing portal including personal details, salary income, dividend income, interest income and capital gains.

Availability of Form 16 and 26AS

While filing ITR, users should keep Form 16 and 26AS available.

Form 16 is a certificate issued by an employer that provides details of TDS/TCS for various transactions between deductor and deductee.

On the other hand, form 26AS - a consolidated annual tax statement – is an essential document required during filing ITR. This is just like the tax passbook, which has all the information of all the incomes which have been reported, the taxes that have been deducted and other specific financial transactions that have been reported against assessee’s Permanent Account Number (PAN).

Filing ITR with using all sources of income

While computing the ITR, it is vital to take into account all sources of income whether from the previous or current employment or income from investments and file it under the appropriate ITR form.

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First Published:Aug 3, 2021 6:32 PM IST