The last date for filing income tax return for the financial year 2020-21 is 30 September. The preparations for which should start from now. The reason for this is also different ITR forms for each group and class. For which preparations also have to be done separately. Let us also tell you what kind of preparation you should do before filing ITR.
For those whose income comes from interest,
those who have invested in fixed deposits in banks, they will have to take annual interest certificate for the year ended 31 March 2021. This will ensure that interest is correctly credited to your income from those bank fixed deposits. This will help you a lot in filling your ITR. With this certificate, you can also cross check whether any type of deposit on which monthly interest is getting matched with the amount deposited.
For Salaried People
As the last date for submission of Form 16 to the employees extended till 31st July 2021 is over, you all must have received your Form No. 16. Check Form 16 for correctness as to the amount of exempt income such as HRA and LTA. You should also check the various deductions mentioned herein to find out whether all the documents submitted by you should be considered.
It is possible that the employer may not take into account some of the documents which were submitted late or were overlooked due to oversight, resulting in higher deduction of tax. The documents can be related to items like rent receipt, LTA claim document, interest on life insurance premium, health insurance premium, home loan EMI, education loan or school tuition fee etc. Also tally the gross salary mentioned in Form No.16 with your monthly salary slip. You should also closely check your salary slip along with the bank statement keeping in mind the various deductions like PF, Profession Tax and Income Tax etc.
If you are engaged in business or profession If you are engaged in business or profession, first of all, you need to check whether you are eligible for an estimated scheme of taxation. If you are not so qualified, you may need to have your accounts audited. You need to appoint an auditor to get your accounts audited and take certain details to be submitted to the auditor for timely completion of the audit. If your business receipts are subject to Tax Deduction at Source (TDS), you need to reconcile the amount of TDS between Form 26AS and your account books. There is sure to be a difference between these two numbers. There could be many reasons for such difference, chief among them being the accounting of challans in different account years, especially for the last month of the year or due to non-deposit of TDS by the deductor.
For those with capital gains income
you need to obtain statement of accounts from brokers/mutual funds to verify if you have capital gains from direct equity shares or mutual funds as all transactions are considered while computing capital gains. is done. Some of these transactions like Systematic Transfer Plan (STP) in Mutual Funds are not reflected in your bank. Similarly, certain intra-day transactions may also be omitted where certain shares have been bought against the shares sold on the same day which are not fully reflected in your bank statement. The next step is to obtain the capital gains statement from your mutual fund house so that your capital gains taxable at different rates from different categories of mutual funds can be correctly calculated.
Verification of Transactions with Form No. 26AS
All taxpayers need to download their latest Form No. 26AS and verify that all the transactions mentioned therein have been duly considered while computing your taxable income. You will also have to give account of all the income for which TDS is appearing in this form. Since the contents of 26AS now also include various financial transactions, it is pertinent to verify that all such transactions recorded in 26AS are yours and have been considered by you while computing your taxable amount.
