The deadline to submit income tax returns (ITR) for financial year 2021-22 and assessment year 2022-23 is July 31. Most taxpayers, therefore, are in the process of filing their ITRs. Tax returns should be filed as early as possible also to avoid any potential last-minute hassles.
While the Income Tax Department provides pre-filled forms to help salaried individuals file their returns without any hassle, taxpayers, too, should keep all the required documents handy, and cross-check each field in the pre-filled forms.
Read More: What should you keep in mind while filing your income-tax return?
Meanwhile, individuals filing ITRs for the first time should keep the following key points in mind:
(1.) Choose correct ITR form: For accurate filing, select the applicable form depending upon your residential status and income earned from various sources. The return will not be processed if filed through a wrong form, and the tax department may send you a ‘defective return notice’.
(2.) New tax regime vs old tax regime: For business owners, the tax regime, once selected, cannot be changed. However, individuals with income from salary, house and property can change their tax regime every year.
The new optional tax regime, with modified tax slabs and rates, was introduced by the Income Tax Department, through Finance Act 2020. However, those opting for the new regime will have to forgo exemptions and deductions.
