The financial year is soon coming to an end. This end brings with it the beginning of your income tax worries. Now, if you know how to file your ITR, that’s great. However, you should have a quick look at these common mistakes people make. So, let’s look at how you can avoid the common blunders while filing your ITR.
You know that feeling, right? Tax deadline looming like a raincloud, paperwork avalanche threatening to bury you. Make sure you start early. The portal saves your progress. So you can complete your filing partially and ensure you do not keep everything for the last day. Moreover, you also avoid the late filing fees.
Not all tax heroes wear the same cape. Choosing the wrong ITR form is like wearing mismatched socks - it throws off your whole game. For most salaried folks under Rs. 5 lakh, it's ITR 1 (the easy one). However, higher earners or side hustlers have ITR 2. Check your income groove and pick the form that matches your financial moves.
Don't trust your brain when it comes to income and deductions. Save your receipts and keep them in front of you while filing the ITR. Medical bills, education expenses, home loan interest - these become your backup singers, harmonising with your claims for deductions. Keeping good records throughout the year saves you last-minute scrambles.
Deductions are like magic tricks that lower your taxable income. Don't miss out on claiming eligible ones under sections 80C, 80D, and HRA. If you want to know more about these deduction sections, read our blog here. Think medical insurance, home loan interest, and investments like PPF or ELSS. The more deductions you claim, the less you pay the taxman.
Leave the fancy maths to the experts (or the portal's built-in calculator). Don't get tangled in calculations, especially not tax rates and slabs. Check the numbers carefully, but don't become a tax mathematician extraordinaire. Refer to the calculator in the portal and you will know how much tax you are liable to pay.
Your ITR journey isn't over after hitting submit. Verification is like the final bow to your audience. Choose your style: e-verification through Aadhaar or net banking, or the classic paper waltz by sending the signed ITR V form to your tax office. Don't skip this step, or your return might get lost in the crowd.
Remember those handy receipts and documents? Don't toss them after verification! Keep them safe for at least three years after filing your ITR. At times, the government might ask you for those tax filing receipts. Save them securely.
The tax season is not a one-person show. Reach out for help. You can consult a tax advisor, or a chartered accountant, leverage online resources, or even ask a tax-savvy friend. Two heads are better than one, aren’t they?
Remember, knowledge is power, and when it comes to taxes, confidence is key. Stay informed about tax rules and updates. The more you know, the less intimidating tax season becomes. So, grab your documents, put on your "I-got-this" attitude, and ace this ITR trivia! You've got this, tax warrior!