The last day to submit income tax returns for any particular financial year is typically July 31 of the assessment year that comes after the financial year. This year also, tax returns are expected to be filed till the same date. To avoid fines and other legal actions, you must file your income tax return before the deadline.
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April-July is the time of year when the salaried class or business persons rush to file their income tax returns. According to the Income Tax Act of 1961, and the Income Tax Rules, 1962, every person eligible to pay income tax is required to submit investment proofs and ITR-related essential documents to the income tax department.
Your income tax depends on your earnings and the source of your income, as there are different tax slabs for people with different incomes. The taxable income includes your company profit, salary, interest income, investment profit, etc.
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For most of the years, the government sets the deadline for filing income tax returns as July 31. Although the deadline is often extended, if one fails to file an ITR by the set deadline, they may have to face a heavy penalty from the income tax department.
To ensure the timely filing of your income tax return, you can either use tax filing software or seek the advice of a tax professional.
Here’s a list of documents you need to file your income tax return:
PAN Card: Permanent Account Number (PAN) is the most essential document to file an ITR. It tracks your financial transactions. In addition, banks have the right to withhold tax at a higher rate of 20% if you fail to provide your PAN. If the bank has access to your PAN information, just 10% will be deducted.
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Aadhaar Card: The Unique Identification Authority of India (UIDAI) issues a 12-digit numerical code known as Aadhaar to ascertain an individual’s identity. If your mobile number is listed in the Aadhaar card database, your Aadhaar card also helps in the electronic verification of your ITR form.
Bank interest certificates and statements: You should download your bank statements in advance for ITR filing so that you are aware of the interest and other money that have been credited to your account.
In addition, you should obtain interest certificates from banks so that you can easily calculate the entire interest income that was credited to your account throughout the fiscal year. It is significant to note that an individual may deduct up to Rs 10,000 under Section 80TTA of the IT Act for interest received on all savings and fixed deposit accounts held with a bank, cooperative bank, or post office.
Form 16 A: The form 16 certificate, which employers give to their employees, certifies that the employee has paid TDS on their wages and that the employer has deposited that money with tax authorities on their behalf. There are two sections of Form 16 – Part A and Part B. The information provided in Part A includes the employer’s name, address, TAN and PAN for the employer, the employee’s PAN, and month-by-month information on the tax deducted at source, while the pay breakdown, together with deductions and computations, is provided in Part B.
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Capital Gain/Loss Statement: If you have sold shares, mutual funds, gold, or property, and made a profit, you must pay capital gains on those earnings. Download the capital gain statement via the broker’s website or mobile app, or from Registrar and Transfer Agents (RTA) like CAMS and KFintech, to find out the capital gain amount.
Month-wise Salary Slips: You must have all months’ salary slips to file your ITR.
Form 26AS: The Income Tax Department issues Form 26AS, an annual tax statement, which includes information on the taxes you have paid in advance, been charged, and received back. People frequently under or over report their income. Thus, it is always good to compare your income reported in ITR with Form 26AS.
