ITR Filing 2023: Keep These 6 Key Points in Mind To Ensure Smooth Filing Of Income Tax Returns

ITR Filing 2023 Latest Update: For the assessment year (AY) 2023-24, the last date to file an Income Tax Return (ITR) is July 31, 2023. The following are the key points you should check before filing the ITR.

New Delhi: This month, salaried employees will receive Form 16 this month from their employers. It contains details of tax deducted at source (TDS) on behalf of the employee by the employer. Form 16 also contains a detailed summary of the salary paid by the employer apart from TDS.

Form 16

Form 16 provides a detailed description of the salary paid to the employee, deductions claimed by the employee and the tax deducted from it. Employers are required to issue Form 16 by June 15. This form is very crucial when it comes to filing income tax returns.

For the assessment year (AY) 2023-24, the last date to file an Income Tax Return (ITR) is July 31, 2023. The following are the key points you should check before filing the ITR.

Tax Regime: First, you should check what tax regime has been considered while computing Form 16.

You can compare both tax regimes using an income tax calculator with the claim of tax deduction and exemptions to see which regime is beneficial, according to Archit Gupta, Founder and CEO of Clear (formerly ClearTax), as quoted by Financial Express.

“Taxpayers who are salaried and don’t have any business income are allowed to switch to a more favourable regime at the time of filing their tax return.,” says Gupta.

Deductions: Before filing the ITR, you should check whether all your submissions for deductions have been included and allowed in the Form 16.

“If not you can include deductions (those covered under chapter VIA) at the time of filing your return. Usually these forms are auto-generated and several websites allow you to upload them to auto-populate your ITR, which makes filing easy and faster,” says Gupta.

PAN and Personal Details: You should also verify that the Permanent Account Number (PAN) mentioned in Form 16 is correct. Apart from that also, ensure that your name, address, and employer’s TAN and PAN are accurately mentioned.

Part A and Part B of Form 16: Both the parts of Form 16, Part A and Part B, that summarise the taxes deducted and deposited by your employer as TDS should be reviewed.

You should compare the tax deduction details in Part A of Form 16 with the information in your Form 26AS and Annual Information Statement (AIS).

Part B reflects details of salary income and deductions you claim, leading to your taxable salary income. Make sure that any tax-saving deductions and exemptions you have claimed are correctly mentioned in Form 16.

Cross-Verify Tax Deductions: The tax deducted from your salary should be compared with the taxes in Form 16, Form 26AS, and AIS.

In case you find any discrepancies, promptly inform your employer and request them to rectify the information in Form 16. Ensuring that the accurate details align with Form 26AS and AIS is essential.

Job Changes and Multiple Employers: In FY 2022-23, if you have switched jobs, you should collect Form 16 from all your employers. This will help you determine the actual taxable salary and ensure accurate reporting. When you begin a new job, you should inform the new employer about the income earned from the previous employer to avoid potential tax payment issues.

“By carefully reviewing and verifying the information in Form 16, cross-checking it with your salary slips, Form 26AS, and AIS, and addressing any discrepancies with your employer, you can ensure the accurate filing of your ITR and avoid potential issues with the income tax department. It is always advisable to consult a tax professional or use online tax filing platforms to ensure the correctness of your ITR filing,” Abhishek Soni, Co-founder & CEO of Tax2win told FE.