Income-tax returns: From what documents are required, to which forms is the one to fill, and what is the last date of filing — we look at the top 10 important things to remember for first time taxpayers filing their income tax returns (ITR).
Notably, while the e-filing process has become quicker and easier over the years, the process can be daunting for for first-time filers. Salaried individuals overwhelmed by the process can use this simple checklist to ensure that they are properly prepared before filing ITR.
Top 10 things to remember for first time taxpayers filing ITR
- Who must file ITR? Notably, all Indian residents are required to file their ITR for income tax purpose:
If the aggregate of your income or salary exceeds the prescribed limits.
If they hold assets in India or abroad;
If they have investments in markets, shares, or ESOPs;
If they have bank deposits exceeding ₹50 lakh combined;
If they have savings or current account exceeding ₹1 crore total;
If they have paid electricity bill over ₹1 lakh annually; or
If they have travelled internationally with expenditure over ₹2 lakh; and
If the value of their sales (irrespective of income) exceeds ₹60 lakh.
- What is e-verification? Is it mandatory? The Income-Tax (I-T) Department has noted that when filing your returns all assessees must complete the process by completing e-verification of their ITR filing. If not done within 30 days, it may result in your ITR refund getting delayed due to “invalid” or “incomplete” process. This can be done via the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC).
- Which ITR form should you choose? Choose the form as per your eligibility mentioned below:
Choose ITR-1 form: If you are an individual with income from salary, one house property, and other sources.
Choose ITR-2 form: If you are an individual or Hindu Undivided Family (HUF) without business income.
Choose ITR-3 form: If you are an individual or HUF with income from business or profession.
Choose ITR-4 form: If you have presumptive income from business or profession.
