The tax season is rapidly approaching. It’s that time of year again when you have to go through the tedious process of determining which documents you need, gathering those documents, determining which forms to fill out, and making sure you don’t miss the deadline.
Also Read: Income Tax Return Filing
While you can’t avoid doing taxes, understanding what you need and how to go about it will help alleviate a lot of the burden. That’s why we’ve created this checklist to assist you in the process.
Gather all of these documents
It is a good idea to keep all relevant paperwork on hand to make the tax filing process go smoothly.
Here’s a list of the documents you’ll need:
This is a certificate supplied by your employer stating that tax has been withheld from your paycheck and paid to the IRS. Most businesses send this form out before June 15th.
Your consolidated annual tax statement is Form 26AS. This paper acts as a tax passbook, listing all of the taxes deducted from your earnings and submitted on your behalf.
Form 26 AS comprises the following information:
- Your employer deducts tax
- Banks deduct taxes
- If any other entity has paid you, they will deduct TDS.
- You deposited advance taxes within the fiscal year.
- You have deposited your self-assessment taxes.
The income tax department’s website has Form 26As available for download. You will be forwarded to the following websites after selecting Form 26AS, where you can download the statement.
If there is a discrepancy, it is recommended that you repair it to avoid future problems.
It is critical for paid taxpayers to have a few salary slips on hand. This is because, as of this fiscal year, it is required to break down your compensation when submitting your taxes.
Proofs of Tax Savings:
If you put off investing until the last minute to save money on taxes, you’ll have to declare those assets while filing your taxes in order to claim deductions. So, gather all of your investment evidence, such as insurance premiums, ELSS fund investments, and so on.
Apart from that, you should obtain a loan statement from the bank if you have claimed a deduction for an education loan or a home loan.
These statements will detail the principle and interest you paid over the fiscal year.
Bank and Post Office Interest Certificates:
Individuals’ interest generated on savings bank accounts, fixed deposits, recurring deposits, and post office deposits is classified as “Income from other sources.” As a result, these interest earnings are taxable.
Previously, you had to enter a total under the “revenue from sources” heading. However, from this year, interest income from all deposits, bank accounts, and income tax refunds must be recorded separately.
After you’ve gathered these documents, you can quickly use an income tax calculator to figure out how much income tax you’ll have to pay. To prevent the last-minute stress while submitting your tax returns, you should gather these documents ahead of time.
Choose the correct ITR form.
This year, the Internal Revenue Service has made certain adjustments to ITR forms. As a result, it’s a good idea to familiarize yourself with these modifications and determine which ITR form you’ll need to complete.
If you utilize the incorrect ITR form, your returns will be rejected, and you may be required to resubmit them by the IRS.
Here’s a rundown to assist you figure out which ITR form to use for your tax returns.
Fill in all of the blanks.
Once you’ve chosen the form, double-check that all of the information is right.
Aside from the information already given, you’ll need to fill out the ITR form with your bank information (name as it appears on your PAN card, account number, and IFSC code), PAN number, and email address.
Make extra sure that every detail is correct, as any discrepancy with the income tax department’s data can result in the returns being rejected.
Furthermore, if your contact information is incorrect, you will lose out on communications from the IRS regarding your return or any inconsistencies that require attention.
Suggested Read: Income Tax Advisory Services