By Shailesh Kumar
That is that point of the 12 months, the place each taxpayer is busy wanting into their transactions for the final 12 months and making ready their earnings tax return (ITR). Salaried taxpayers ought to guarantee they’ve their Kind 16 and the credit score of taxes are duly and appropriately reflecting in Kind 26AS.Part 115BAC launched vide Finance Act 2020 supplies an choice to the taxpayers to decide on between the brand new and outdated tax regime.
Whereas the brand new regime supplies for decrease tax charges, it takes away the choice to assert sure tax exemptions and deductions allowable within the outdated tax regime. Because the number of choice is to be intimated on the time of submitting of the return, the part supplies a profit to the salaried taxpayers whereby the taxpayer can select a unique regime on the time of submitting of return than what was opted for with the employer for the aim of deduction of tax.
New and outdated tax regime
In a case the place taxpayer opted for the outdated regime with the employer however couldn’t make funding as declared beneath Part 80G of the Revenue-tax Act, 1961 (the Act) and realises that the brand new regime can be extra useful to him, he can nonetheless go for new regime whereas submitting the ITR and any refund due in such a case could be claimed. Subsequently, one ought to analyse nicely prematurely if any change within the regime is required whereas submitting ITR.
Additional, one should accumulate financial institution statements and financial institution curiosity certificates and reconcile the identical with tax credit obtainable in Kind 26AS. Though all the technique of taxation is digitalised, even the slight risk of error of any brief tax credit score could be averted. Additionally, holding your medical premium receipts, residence mortgage curiosity certificates, and donation receipts helpful will assist you make sure that you don’t miss out the advantage of any deduction. For salaried people, if any deduction was left to be declared in Kind 16, the identical could be moreover claimed when submitting ITR.
Books of accounts
As well as, people having earnings from enterprise and/or career should test whether or not they’re required to arrange books of accounts beneath the provisions of the Act. Non-adherence to compliances for sustaining books of accounts may end up in making your return faulty. Additional, with the introduction of Part 112A, quite a lot of info close to your investments must be stuffed within the return type. All of the capital acquire statements have to be collected forehand such that no info is missed whereas submitting the return.
Now that the division has automated its course of for issuance of refunds, you will need to make sure that your checking account is pre-validated on the brand new earnings tax portal. Additionally, select the proper return type in order that the whole and proper particulars could be supplied. The interface for submitting has been utterly revamped on the earnings tax portal to make it extra user-friendly and interactive. It’s advisable to finish your filings with out a lot ado to keep away from any penalty, curiosity and last-minute rush. So, select your kinds properly and don’t hesitate to contact your tax advisors in case of ambiguity.
The author is companion, Nangia & Co