Things to be kept in mind while filing ITR for AY 2024-25

Financial Year 2023-24 has come to an end and every taxpayer might be now willing to submit income tax returns to the Income Tax Department for the Assessment Year 2024-25. But before filing ITR, it is important to ensure that you are ready with all necessary documents and information which will help you in correct calculation of annual income and income tax. Here’s a checklist that will help you…

Collect all relevant documents relating to income

• PAN (Permanent Account Number)
• Aadhar Card

Note: Ensure that your Aadhar card is linked with PAN. If not yet linked, you may still link it after paying a fee of Rs. 1,000.

• Bank Account Details (All saving and current accounts with account numbers, branch address and IFSC Code)
• Bank Statements (you may leave statements of the accounts those are dormant during the year)

Note: Bank Statements will help you assess your interest income on saving deposits. It also helps you assess cash deposits made during the year which might have a bearing on your total income.

• In case of a salaried taxpayer: Form-16 provided by the employer showing details/ break up of salary income and various deductions and TDS deducted by the employer

• Details of House Property income: If you have income from renting of house property, details of such rental income should be prepared as it is taxable under income tax. Also ask your bank for interest certificate for FY 23-24 if you have taken a housing loan so as to claim interest and principal deduction.

• If you are a businessman or a professional: Prepare your financial statements including Trading & P&L/ Income & Expenditure A/c and Balance Sheet for declaring your income either under presumptive taxation scheme or otherwise.

Details of capital gains

(a) If you have invested in shares or mutual funds, gains on such investments are taxable under Income Tax. Therefore, ask your broker for Capital Gain Statement (Tax P&L) for FY 23-24 and also holding statement as on 31^st March 2024.

(b) In case you have sold any property during the FY 23-24, get ready with a copy of sale deed and original purchase deed for calculation of capital gains on such sale.

Details of Other Income

• Crypto Transaction Statement (if traded in cryptocurrency)
• Statement of Profits from Gaming transactions
• Interest Certificates from banks (for income on fixed deposits)
• Interest income details from other parties (if you have extended loans to other parties)
• Agriculture Income details (in case of agriculture income)
• Dividend Income Details (calculated from Bank Statements/ Broker’s statement/ AIS)
• PPF Pass Book (if having PPF Account)
• Details of NSC/ KVP (for calculating interest income on NSC/ KVP)
• Post Office Account Passbook

Proofs of deductions to be claimed

• Life Insurance Premium Receipts
• Medical Insurance Premium Receipts
• ELSS investment statements
• Sukanya Samridhi Deposit
• NSC Certificates
• Donation Receipts (Trusts or political parties)
• House Rent Receipts for claiming rent deduction
• School Fees Receipts of kids
• Tax Saver FDR copy
• Housing Loan Repayment Certificate
• NPS Statement

Choose correct ITR form

Income tax department has prescribed 7 different ITR forms as ITR-1 to ITR-7. The simplest one is ITR-1 also known as “SAHAJ”. You must choose correct ITR form on the basis of your income sources and residential status and other prescribed criteria.

Fill ITR Form carefully

Fill the income details in ITR form carefully. Ensure that you have gone through all the above documents and information for calculation of your annual income. Claim deductions for which you are eligible.

Submit ITR Online

You can easily submit your income tax return online on e-filing portal of the Income Tax Department. Don’t forget to e-verify ITR either using Aadhar OTP/ EVC. Income Tax Department will not consider unverified ITRs as valid.

Due dates for filing ITR F.Y. 2023-24 (A.Y. 2024-25)

• If you are an individual, HUF, Firm, AOP and BOI (whose accounts are not required to be audited), the due date of filing ITR is 31^st July 2024.
• In case of companies and other non-company assessee liable for audit, the due date of filing ITR is 31^st October 2024.
• Business entities who need to file transfer pricing audit, the due date of filing ITR is 30^th November 2024.

Time limit for filing belated and revised returns

• Belated returns for A.Y. 2024-25 can be filed till 31^st December 2024 subject to payment of late fees.
• Returns filed for A.Y. 2024-25 on or before due date can be revised till 31^st December 2024 in case you find any error in income declared.

Time limit for filing Updated Return for FY 2023-24 (AY 24-25)

If not filed till 31^st December 2024, ITR for AY 24-25 can still be submitted. The Income Tax Department allows you to file “Updated Return” for FY 23-24 (AY 24-25) till 31^st March 2027 i.e. two years from the end of the relevant assessment year.

Precautions: Don’t miss the initial deadlines of 31^st July & 31^st October 2024 for filing of ITR. Belated filing of ITR will lead to penalty under section 234F and also interest under section 234A. Please ensure that you have checked form 26AS and AIS/ TIS for ensuring that you have considered all incomes in your ITR. In case you are having any foreign assets or foreign income, it is compulsory to make a disclosure in the ITR. Therefore, please ensure that you have correctly declared all foreign assets and foreign income in your income tax return.

If you have any more questions or need further assistance, feel free to contact: support@taxwink.com

Disclaimer: This article is meant for educational purposes only and does not carry any legal or persuasive value. Taxwink shall not be responsible for any loss or damage caused to any person from use of the information contained in this article. Readers are therefore requested to act diligently and under consultation with any professional before applying the information contained in this article. For any user support mail at: support@taxwink.com