Filing your income tax return (ITR) accurately is crucial for compliance with tax laws and avoiding penalties. The Central Board of Direct Taxes (CBDT) has outlined 57 types of incomes and expenses to be reported in the Annual Information Statement (AIS) on the Income Tax portal. This guide simplifies the process of comparing your records with the AIS, providing feedback on discrepancies, and filing your ITR by the due date of 31.07.2024.
Step-by-Step Guide to File Income Tax Return
1. Prepare and Compare AIS Figures
Annual Information Statement (AIS) includes various types of incomes and expenses:
| Type of Income/Expense | Description |
|---|---|
| Salary | Money from your job |
| Rent Received | Money from renting property |
| Dividend | Money from company profits |
| Interest from Savings Bank | Interest from savings account |
| Interest from Deposits | Interest from fixed deposits |
| Interest from Others | Interest from other sources |
| Interest from Income Tax Refund | Interest on tax refunds |
| Rent on Plant & Machinery | Money from renting machines |
| Lottery/Crossword Winnings | Money from lotteries or puzzles |
| Horse Race Winnings | Money from horse race wins |
| PF Balance from Employer | Provident Fund balance |
| Interest from Infrastructure Debt Fund | Interest from infrastructure funds |
| Interest from Specified Company (Non-Resident) | Interest from companies (for non-residents) |
| Interest on Bonds/Govt. Securities | Interest from bonds/government securities |
| Income from Units of Non-Resident | Income from non-resident units |
| Income/Long-Term Capital Gain from Offshore Fund Units | Gains from offshore funds |
| Income/Long-Term Capital Gain from Foreign Currency Bonds/Shares | Gains from foreign bonds/shares |
| Income of Foreign Institutional Investors from Securities | Income from securities for foreign investors |
| Income of Specified Fund from Securities | Income from specified funds |
| Insurance Commission | Commission from insurance |
| Receipts from Life Insurance Policy | Money from life insurance |
| Withdrawal from National Savings Scheme | Money withdrawn from savings schemes |
| Commission on Sale of Lottery Tickets | Commission from selling lottery tickets |
| Income from Securitization Trust Investments | Income from securitization trusts |
| Income from Repurchase of MF/UTI Units | Gains from repurchasing mutual funds |
| Interest/Dividends Payable to the Government | Interest/dividends owed to the government |
| Income of Specified Senior Citizens | Income for specified senior citizens |
| Sale of Land or Building | Money from selling property |
| Receipts from Transfer of Immovable Property | Money from transferring property |
| Sale of Vehicle | Money from selling vehicles |
| Sale of Securities/Mutual Fund Units | Earnings from selling securities/mutual funds |
| Off-Market Debit Transactions | Non-market transactions debited |
| Off-Market Credit Transactions | Non-market transactions credited |
| Business Receipts | Money from business activities |
| GST Sales Turnover | Sales reported under GST |
| GST Purchases | Purchases reported under GST |
| Business Expenses | Business expenses |
| Rent Payment | Money paid for rent |
| Miscellaneous Payments | Various other payments |
| Cash Deposits | Money deposited in bank |
| Cash Withdrawals | Money withdrawn from bank |
| Cash Payments | Payments made in cash |
| Outward Foreign Remittance/Purchase of Foreign Currency | Money sent abroad or used for foreign currency |
| Receipt of Foreign Remittance | Money received from abroad |
| Payment to Non-Resident Athletes/Sports Associations | Payments to non-resident athletes |
| Foreign Travel | Money spent on foreign travel |
| Purchase of Immovable Property | Money spent on buying property |
| Purchase of Vehicle | Money spent on buying vehicles |
| Purchase of Time Deposits | Investments in time deposits |
| Purchase of Securities/Mutual Fund Units | Money spent on buying securities/mutual funds |
| Credit/Debit Card Transactions | Transactions using credit/debit cards |
| Account Balance | Bank account balances |
| Income Distributed by Business Trust | Money distributed by business trusts |
| Income Distributed by Investment Fund | Money distributed by investment funds |
| Donations Received | Money received as donations |
| Receipt on Transfer of Virtual Digital Assets | Money from digital assets |
| Winnings from Online Games | Money from online games |
2. Steps to Check and Compare with AIS
- Log in to Income Tax Portal: Visit the Income Tax e-Filing portal.
- View AIS: Go to ‘Annual Information Statement (AIS)’ to see all your incomes and expenses.
- Compare Figures: Match the figures in AIS with your records. Check for any discrepancies.
3. Provide Feedback on AIS Figures
- Correct: If figures match, mark them as correct.
- Incorrect: If figures don’t match, provide the correct information.
- Missing: If any income or expense is missing, add it.
4. File Income Tax Return
- Go to 'e-File': Select 'Income Tax Return'.
- Select Assessment Year 2024-25.
- Fill in Details: Provide your income, deductions, and tax paid details.
- Verify and Submit: Verify the information and submit the return.
Precautions While Filing Income Tax Return
| Precaution | Details |
|---|---|
| Download AIS and Form 26AS | Check actual TDS/TCS/tax paid. Reconcile discrepancies with the Employer/Tax Deductor/Bank. |
| Compile Documents | Refer to bank statements, interest certificates, Form 16, Form 26AS, investment proofs, etc. |
| Verify Pre-filled Data | Ensure details like PAN, address, contact details, bank account details are correct. |
| Choose the Correct ITR Form | Select from ITR-1 to ITR-7 based on your income sources and residential status. |
| E-File on Time | File before 31.07.2024 to avoid late fees and other penalties. |
| E-Verify Return | E-Verify the return or send the signed physical copy of ITR-V to the Centralized Processing Center. |
Understanding Key Forms and Processes
Form 26AS
| Aspect | Details |
|---|---|
| What is it? | A statement showing TDS, TCS, Advance Tax, and Self-Assessment Tax details. |
| Purpose | Serves as a comprehensive record of tax credits available in your account. |
| Common Issues | Non-filing or incorrect filing of TDS return by the deductor, incorrect PAN or challan details. |
| Correction | Contact the deductor to file or revise the TDS return. Request the bank to correct challan details. |
Choosing the Correct ITR Form
Use the "Help me decide which ITR Form to file" option on the e-Filing portal to determine the correct form based on your income sources and taxpayer type.
Advance Tax
| Aspect | Details |
|---|---|
| What is it? | Taxpayers with tax liability over ₹10,000 must pay advance tax in quarterly installments (June, September, December, and March). |
| Self-Assessment Tax | Calculated after filling out the ITR form and must be paid before submission. |
Common Terms
| Term | Description |
|---|---|
| Allowances | Fixed amounts apart from salary (e.g., travel allowance) that increase taxable income. |
| Perquisites | Additional benefits received from employment, taxable based on their nature. |
| Donations | Tax deductions vary based on the recipient entity and donation amount. |
| E-Filing vs. E-Payment | E-Filing is submitting the ITR, while e-payment is paying the tax online. |
After Filing the ITR
| Step | Details |
|---|---|
| Verify Return | Use e-Verification for convenience. |
| Address Errors | File a revised return if errors are found post-submission. |
| File ITR-U | For missed previous returns, file ITR-U for the last two years. |
Consequences of Late Filing
| Consequence | Details |
|---|---|
| Late Fees | Up to ₹5,000 for filing after the due date. |
| Interest | Payable on unpaid tax. |
| Loss of Deductions | Certain deductions and exemptions may not be available. |
Refunds
| Aspect | Details |
|---|---|
| Claim | Excess tax paid can be claimed as a refund in the ITR. |
| Process | After ITD processes the return, the refund amount is credited to your bank account. |
By following these steps and taking necessary precautions, you can ensure accurate and timely filing of your income tax return for AY 2024-25
