The income tax slab rate is the percentage of tax you pay on your income, determined by the income range you fall into. This rate varies for different taxpayer categories, such as individuals, HUFs, and companies, and changes annually based on government budget announcements.

This blog post explores the income tax slab rates for FY 2023-24, AY 2024-25, as proposed in the Finance Bill, 2023. We will also compare the new and old tax regimes to help you decide which one suits you better.

Income Tax Slab Rate for FY 2023-24, AY 2024-25: New Tax Regime vs. Old Tax Regime

The Finance Bill, 2023, introduced significant changes to the income tax slab rates, especially for the new tax regime, which offers lower tax rates but fewer deductions and exemptions.

The new tax regime offers lower tax rates for most income ranges, except the lowest and highest ones. However, it also has some drawbacks, such as no deductions or exemptions (e.g., 80C, 80D, 80G), no standard deduction for salaried individuals, no rebate under section 87A, no relief under section 89, and no option for presumptive taxation under sections 44AD, 44ADA, or 44AE.

In contrast, the old tax regime allows you to claim these benefits but at higher tax rates. Therefore, you need to weigh the pros and cons of both regimes to choose the one that suits your income and expenses better.

How to Choose Between the New Tax Regime and the Old Tax Regime?

Choosing between the new and old tax regimes depends on your income level, sources of income, investments, expenses, deductions, and exemptions. Follow these steps to decide:

1. Calculate your taxable income under both regimes: Add all your income from various sources (e.g., salary, house property, capital gains, business or profession).
2. Calculate your tax liability under both regimes: Apply the income tax slab rates for FY 2023-24, AY 2024-25. Don’t forget to add surcharge and cess, if applicable.
3. Compare your tax liability under both regimes: Choose the regime with the lower tax liability.

Example:

Assume an individual with a salary income of Rs. 12 lakh, who has invested Rs. 1.5 lakh in 80C, Rs. 25,000 in 80D, and Rs. 10,000 in 80G. With a standard deduction of Rs. 50,000 and a rebate of Rs. 12,500 under section 87A:

The old tax regime is better in this case, as it reduces the net tax liability by Rs. 80,500. However, if you have no investments or deductions, the new tax regime may be better due to its lower tax rates.

Conclusion

The income tax slab rates for FY 2023-24, AY 2024-25, are crucial for tax planning and savings. Choosing between the new and old tax regimes depends on your specific income and expenses. Compare the tax liability under both regimes to see which one offers more savings.

For expert guidance, Gorantla Associates provides comprehensive support to ensure a smooth and compliant ITR filing process.

Filing your Income Tax Return (ITR) in India is a crucial responsibility, but navigating the process can feel overwhelming, especially with deadlines looming. Fear not! This blog post provides your ultimate ITR filing checklist, a comprehensive guide to ensure a smooth and stress-free filing experience.

Whether you’re a seasoned taxpayer or filing for the first time, this checklist will equip you with all the essential steps. We’ll walk you through gathering the necessary documents, understanding your income sources, maximizing deductions, and navigating the e-filing process.

By following this checklist and utilizing the valuable tips along the way, you’ll be filing your ITR with confidence and potentially maximizing your tax refund. So, grab a cup of coffee, ditch the filing anxiety, and let’s dive into the ultimate ITR filing checklist!

Pre-Filing Preparation

Filing your Income Tax Return (ITR) in India can seem like a daunting task, but with proper preparation, it can be a smooth and stress-free process. This section of the checklist will guide you through everything you need to gather and understand before you begin the online filing process.

Essential Documents

1. PAN Card: Your Permanent Account Number (PAN) is a crucial identification document for tax purposes. Ensure you have a copy readily available.
2. Aadhaar Card: While not mandatory for everyone, having your Aadhaar card handy can simplify the filing process and verification.
3. Bank Statements: Bank statements for the relevant financial year will reflect your income from interest earned on savings accounts, fixed deposits, etc.
4. Form 16: If you are a salaried individual, your employer will provide you with Form 16, which details your salary income, tax deducted at source (TDS), and other relevant information. You can also access it electronically through the Income Tax e-filing portal or your employer’s online portal.
5. Investment Proofs: Keep proof of any investments you made during the year that qualify for tax deductions under various sections. This may include documents related to Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), health insurance premiums, etc.

Understanding Your Income Sources

Before you begin filing, take stock of all your income sources for the financial year. This includes:

• Salary income
• Interest income from various sources
• Income from rental properties
• Capital gains from the sale of assets
• Income from business or profession (if applicable)

A complete picture of your income is essential for accurate tax filing and claiming any applicable deductions.

Tax Deductions and Exemptions

The Indian Income Tax Act offers various deductions and exemptions that can significantly reduce your tax liability. Some common sections include:

• Section 80C: This popular section allows deductions for investments in various schemes like ELSS, PPF, NPS, and others.
• Section 80D: This section provides deductions for medical insurance premiums paid for yourself and your dependents.
• Section 80TTA: This section allows a deduction for interest earned on savings accounts up to a certain limit.

While this is just a brief overview, understanding these deductions can help you minimize your tax burden. It’s important to note that tax laws can be complex. Consider consulting a qualified tax advisor for personalized advice on maximizing your deductions and ensuring accurate tax calculations.

Filing Process Checklist

Now that you’re prepared with all the necessary documents and a clear understanding of your income sources, let’s dive into the actual filing process. This section will guide you step-by-step through the online filing on the Income Tax Department’s e-filing website.

Step-by-Step Guide

1. Login: Visit the Income Tax e-filing website and log in using your credentials (PAN number and password).
2. Select ITR Form: Choosing the right ITR form is crucial. You can refer to our blog post on “choosing the right ITR form” for detailed guidance on selecting the appropriate form based on your income profile.
3. Filling the ITR Form: Once you’ve selected the correct form, the website will guide you through various sections. Here’s a general breakdown of the key sections you’ll encounter:
   • Income Details: Carefully enter details of your income from all sources, including salary, interest income, capital gains, rental income, etc., as reflected in the documents you gathered earlier.
   • Deductions and Exemptions: This section allows you to claim deductions under various sections like 80C, 80D, etc. Ensure you have the necessary investment proof to support your claims.
   • Tax Calculation: Based on your income and claimed deductions, the system will automatically calculate your tax liability.
4. Verification and Submission: Once you’ve filled out all sections thoroughly, review your entries for accuracy. After verification, submit the ITR form electronically. The website will provide you with an acknowledgment receipt as confirmation of successful filing.

Post-Filing Tips

Filing your ITR is just one step of the process. Here are some important tips to remember after you’ve submitted your return:

Record Keeping

Maintain a well-organized filing system for all the documents you submit during the ITR filing process. This includes copies of your PAN card, Aadhaar card, bank statements, Form 16, investment proofs, and the ITR acknowledgment receipt.

Having these documents readily available can be helpful in case of any inquiries from the tax department or for future tax filing references.

Tax Payment

Once you’ve submitted your ITR, the system will calculate your tax liability. If you have any tax payable after considering the TDS already deducted, you’ll need to make the payment within the stipulated due date.

The Income Tax e-filing portal offers various online payment options like net banking, debit card, and credit card. You can also make the payment offline through challan at designated banks.

Refund Status

If your ITR filing indicates an excess tax payment or refund due, you can track the status of your refund on the Income Tax e-filing website.

The website allows you to view the processing stage of your ITR and the estimated timeline for receiving any potential refund.

By following these post-filing tips, you can ensure a smooth and hassle-free ITR filing experience.

Wrapping Up

Congratulations! You’ve successfully navigated the process of filing your ITR in India. Remember, this handy checklist can be your go-to guide for a smooth and organized filing experience every year.

Benefits of Using This Checklist

• Reduced Stress: By having a clear plan and understanding of the process, you can avoid last-minute scrambling and filing anxieties.
• Organized Filing: The checklist ensures you gather all the necessary documents beforehand, preventing delays and potential errors.
• Accuracy and Efficiency: Following the step-by-step instructions helps you fill out the ITR form accurately and efficiently.

We encourage you to share this checklist with friends and family who might also benefit from a streamlined ITR filing process. Remember, for complex situations or if you have any doubts, consulting a qualified tax advisor is always recommended.

Don’t fall behind your taxes!

Filing your Income Tax Return (ITR) in India is a crucial responsibility, but navigating the process can feel overwhelming, especially with deadlines looming. Fear not! This blog post provides your ultimate ITR filing checklist, a comprehensive guide to ensure a smooth and stress-free filing experience.

Whether you’re a seasoned taxpayer or filing for the first time, this checklist will equip you with all the essential steps. We’ll walk you through gathering the necessary documents, understanding your income sources, maximizing deductions, and navigating the e-filing process.

By following this checklist and utilizing the valuable tips along the way, you’ll be filing your ITR with confidence and potentially maximizing your tax refund. So, grab a cup of coffee, ditch the filing anxiety, and let’s dive into the ultimate ITR filing checklist!

Pre-Filing Preparation

Filing your Income Tax Return (ITR) in India can seem like a daunting task, but with proper preparation, it can be a smooth and stress-free process. This section of the checklist will guide you through everything you need to gather and understand before you begin the online filing process.

Essential Documents

1. PAN Card: Your Permanent Account Number (PAN) is a crucial identification document for tax purposes. Ensure you have a copy readily available.
2. Aadhaar Card: While not mandatory for everyone, having your Aadhaar card handy can simplify the filing process and verification.
3. Bank Statements: Bank statements for the relevant financial year will reflect your income from interest earned on savings accounts, fixed deposits, etc.
4. Form 16: If you are a salaried individual, your employer will provide you with Form 16, which details your salary income, tax deducted at source (TDS), and other relevant information. You can also access it electronically through the Income Tax e-filing portal or your employer’s online portal.
5. Investment Proofs: Keep proof of any investments you made during the year that qualify for tax deductions under various sections. This may include documents related to Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), health insurance premiums, etc.

Understanding Your Income Sources

Before you begin filing, take stock of all your income sources for the financial year. This includes:

• Salary income
• Interest income from various sources
• Income from rental properties
• Capital gains from the sale of assets
• Income from business or profession (if applicable)

A complete picture of your income is essential for accurate tax filing and claiming any applicable deductions.

Tax Deductions and Exemptions

The Indian Income Tax Act offers various deductions and exemptions that can significantly reduce your tax liability. Some common sections include:

• Section 80C: This popular section allows deductions for investments in various schemes like ELSS, PPF, NPS, and others.
• Section 80D: This section provides deductions for medical insurance premiums paid for yourself and your dependents.
• Section 80TTA: This section allows a deduction for interest earned on savings accounts up to a certain limit.

While this is just a brief overview, understanding these deductions can help you minimize your tax burden. It’s important to note that tax laws can be complex. Consider consulting a qualified tax advisor for personalized advice on maximizing your deductions and ensuring accurate tax calculations.

Filing Process Checklist

Now that you’re prepared with all the necessary documents and a clear understanding of your income sources, let’s dive into the actual filing process. This section will guide you step-by-step through the online filing on the Income Tax Department’s e-filing website.

Step-by-Step Guide

1. Login: Visit the Income Tax e-filing website and log in using your credentials (PAN number and password).
2. Select ITR Form: Choosing the right ITR form is crucial. You can refer to our blog post on “choosing the right ITR form” for detailed guidance on selecting the appropriate form based on your income profile.
3. Filling the ITR Form: Once you’ve selected the correct form, the website will guide you through various sections. Here’s a general breakdown of the key sections you’ll encounter:
   • Income Details: Carefully enter details of your income from all sources, including salary, interest income, capital gains, rental income, etc., as reflected in the documents you gathered earlier.
   • Deductions and Exemptions: This section allows you to claim deductions under various sections like 80C, 80D, etc. Ensure you have the necessary investment proof to support your claims.
   • Tax Calculation: Based on your income and claimed deductions, the system will automatically calculate your tax liability.
4. Verification and Submission: Once you’ve filled out all sections thoroughly, review your entries for accuracy. After verification, submit the ITR form electronically. The website will provide you with an acknowledgment receipt as confirmation of successful filing.

Post-Filing Tips

Filing your ITR is just one step of the process. Here are some important tips to remember after you’ve submitted your return:

Record Keeping

Maintain a well-organized filing system for all the documents you submit during the ITR filing process. This includes copies of your PAN card, Aadhaar card, bank statements, Form 16, investment proofs, and the ITR acknowledgment receipt.

Having these documents readily available can be helpful in case of any inquiries from the tax department or for future tax filing references.

Tax Payment

Once you’ve submitted your ITR, the system will calculate your tax liability. If you have any tax payable after considering the TDS already deducted, you’ll need to make the payment within the stipulated due date.

The Income Tax e-filing portal offers various online payment options like net banking, debit card, and credit card. You can also make the payment offline through challan at designated banks.

Refund Status

If your ITR filing indicates an excess tax payment or refund due, you can track the status of your refund on the Income Tax e-filing website.

The website allows you to view the processing stage of your ITR and the estimated timeline for receiving any potential refund.

By following these post-filing tips, you can ensure a smooth and hassle-free ITR filing experience.

Wrapping Up

Congratulations! You’ve successfully navigated the process of filing your ITR in India. Remember, this handy checklist can be your go-to guide for a smooth and organized filing experience every year.

Benefits of Using This Checklist

• Reduced Stress: By having a clear plan and understanding of the process, you can avoid last-minute scrambling and filing anxieties.
• Organized Filing: The checklist ensures you gather all the necessary documents beforehand, preventing delays and potential errors.
• Accuracy and Efficiency: Following the step-by-step instructions helps you fill out the ITR form accurately and efficiently.

We encourage you to share this checklist with friends and family who might also benefit from a streamlined ITR filing process. Remember, for complex situations or if you have any doubts, consulting a qualified tax advisor is always recommended.

Don’t fall behind your taxes!

Filing income tax returns is an essential responsibility for every taxpayer. It not only ensures compliance with the law but also helps you manage your finances better. In this comprehensive guide, we will walk you through the process of filing your income tax returns for 2024, helping you maximize deductions and avoid common pitfalls.

Why File Your Income Tax Returns?

• Importance of Compliance:
  • Filing returns is mandatory for individuals and businesses that meet the income threshold.
  • Non-compliance can result in penalties and legal consequences.
• Benefits of Filing on Time:
  • Claim refunds for excess tax paid.
  • Avail various deductions and exemptions.
  • Maintain a clean financial record for future financial transactions like loan applications.

Essential Documents Needed

• Form 16: Issued by your employer, it contains details of your salary and tax deductions.
• Bank Statements: Helps track interest income and other credits.
• Investment Proofs: Documents for PPF, ELSS, and other tax-saving investments.
• Other Income Proofs: Rental income, capital gains, etc.

Step-by-Step Filing Process

1. Registering on the Tax Portal:
   • Create an account on the Income Tax Department’s e-filing website.
2. Filling Out Forms and Declaring Income:
   • Choose the correct ITR form based on your income source.
   • Enter your personal details and income information accurately.
3. Claiming Deductions and Exemptions:
   • Utilize deductions under sections like 80C, 80D, etc.
4. Reviewing and Submitting the Return:
   • Double-check all details for accuracy.
   • Submit the return and verify it using Aadhaar OTP, EVC, or by sending a signed copy to CPC.

Common Mistakes to Avoid:

• Incorrect Personal Details
  • Ensure your name, PAN, and other details are correct.
• Overlooking Deductions
  • Don’t miss out on eligible deductions due to oversight.
• Missing Deadlines
  • File within the due date to avoid penalties and interest.

Ready to file your income tax returns? Contact Cogent Professionals today for expert assistance and ensure a hassle-free filing experience!

Visit us at www.cogentprof.com Contact us via email at [email protected] or give us a call at +91 86961 99999

Timely payment of taxes not only provides significant savings but also helps avoid penalties, bad credit scores, and other issues. Here is a month-wise income tax calendar with due dates for the financial year 2024-25 to help you remember these important dates.

April 2024

May 2024

June 2024

July 2024

August 2024

September 2024

October 2024

November 2024

December 2024

January 2025

February 2025

March 2025

Don’t fall behind your taxes!
With Cogent Professionals get your taxes done early and enjoy peace of mind.

Visit us at www.cogentprof.com Contact us via email at [email protected] or give us a call at +91 86961 99999

An NRI’s income taxes in India will depend upon his/her residential status for the year.

If your status is ‘resident’, your global income is taxable in India. If your status is ‘NRI,’ your income earned or accrued in India is taxable in India.

An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions:

1. If he / she is in India for a period of 182 days, or more during the previous year or

2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

The Finance Act 2020 has amended the residency provisions to include Indian Citizen/Person of Indian Origin, who comes to visit India and shall now be considered as RNOR subject to the following conditions:

1. Total income other than foreign income is Rs 15 lakh or more.

2. The individual has stayed in India for more than 120 days but less than 182 days in the previous year.

3. The individual has stayed in India for 365 days or more in four years preceding the previous year.

Before this amendment, such individuals were classified as non-residents. Due to the amendment mentioned above, the individual’s residential status may be classified as RNOR, which will lead to increased scope of total income for taxability, loss of various exemptions allowed, etc.

It is to be further noted that in the above amendment, an individual staying for more than 182 days shall be classified as a resident irrespective of the level of income in the previous year.

Deemed residency status introduced in Finance Act 2020

Finance Act 2020 introduced the concept of ‘Deemed residency’. According to this, Citizens of India earning more than Rs 15 lakh from Indian sources shall be deemed a resident of India if they are not liable for payment of taxes in any other country.

The deemed residents shall be classified as RNOR w.e.f FY 2020–21. This amendment was brought into force to tax the incomes of Indian citizens who are not liable to pay tax in any country.

Did you know?

Residency is defined differently in the IT Act, 1961 and the Foreign Exchange Management Act, 1999 (FEMA).

An individual will be considered a ‘Resident in India’ under FEMA based on their intent to stay in India. FEMA residency is essential for individuals interested in foreign exchange transactions such as investments in foreign currency or foreign securities, acquisition or transfer of immovable property, etc.

Residency under the IT Act is determined only based on the physical stay of the individual in India, irrespective of the purpose of stay. Residency under the IT Act will help you determine your taxable income and the applicable tax rates.

Rates of Tax

Start building your financial foundation today for a brighter tomorrow

Ready to start investing? Explore your options with us today and save money with our financial strategies and planning services for both businesses and individuals.

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 Navigating the myriad of compliance requirements under the Income-tax Act, 1961 can be daunting for individuals and businesses alike. For the financial year 2024-25, it is crucial to be aware of various compliance obligations that span across different intervals: yearly, half-yearly, quarterly, monthly, and event-based. This comprehensive guide breaks down these compliances to ensure you remain compliant and avoid penalties.

Yearly Compliances

Yearly compliances are critical for maintaining the financial health and legality of your business operations. These obligations are typically fulfilled once a year and include key filings and reports that reflect your financial activities for the entire fiscal year.

1. Filing of Income Tax Returns (ITR)

• Due Date for Individuals and Non-Audit Cases: 31st July 2024
• Due Date for Audit Cases: 30th September 2024
• Due Date for Transfer Pricing Cases: 30th November 2024

2. Tax Audit Report

Due Date: 30th September 2024

Applicable for individuals and entities required to undergo tax audits under Section 44AB.

3. Filing of Annual Financial Statements

Due Date: 30th September 2024

Required for companies, this includes filing balance sheets and profit and loss accounts with the Registrar of Companies (ROC).

Half-yearly Compliances

Half-yearly compliances ensure that your tax obligations are met twice a year, providing a mid-year review and adjustment opportunity for your financial strategies.

1. Filing of TDS Returns

Due Dates: 31st October 2024 and 30th April 2025

For deductions made under various sections such as 192, 194, etc.

Quarterly Compliances

Quarterly compliances help in the regular monitoring and payment of taxes, ensuring that financial and tax planning is more manageable and less burdensome at the year-end.

1. Payment of Advance Tax

Due Dates:

• 1st Installment: 15th June 2024 (15% of advance tax)
• 2nd Installment: 15th September 2024 (45% of advance tax)
• 3rd Installment: 15th December 2024 (75% of advance tax)
• 4th Installment: 15th March 2025 (100% of advance tax)

2. Filing of TDS Returns

Due Dates:

• Q1: 31st July 2024
• Q2: 31st October 2024
• Q3: 31st January 2025
• Q4: 31st May 2025

Monthly Compliances

Monthly compliances involve regular, smaller tasks that keep your business on track with tax obligations and financial health checks throughout the year.

1. Payment of TDS

Due Date: 7th of the following month

For taxes deducted on salaries, payments to contractors, rent, etc.

2. Payment of TCS (Tax Collected at Source)

Due Date: 7th of the following month

For taxes collected on specified goods.

Event-based Compliances

Event-based compliances are triggered by specific actions or events within your business, requiring timely and precise responses to maintain compliance.

1. Filing of Form 60/61

Required when a transaction requiring PAN is undertaken by a person not having a PAN.

2. Issuance of TDS Certificates (Form 16/16A)

Due Dates:

• Form 16: 15th June 2024
• Form 16A: Within 15 days from the due date of TDS returns filing.

3. Transfer Pricing Report (Form 3CEB)

Due Date: 30th November 2024

Applicable for entities entering into international or specified domestic transactions.

4. Form 15CA/15CB for Remittances

Due Date: Before making foreign remittances

Required to be furnished for transactions that are subject to withholding tax.

Staying updated with these compliance requirements is essential to ensure smooth business operations and avoid penalties under the Income-tax Act, 1961. Proper planning and timely execution of these tasks will not only keep you compliant but also help in efficient financial management.

For the financial year 2024-25, it is advisable to maintain a compliance calendar and consult with tax professionals to ensure all deadlines are met and all required documents are duly filed. This proactive approach will ensure that you are always on the right side of the law and can focus on the growth and success of your business.

Start building your financial foundation today for a brighter tomorrow

Ready to start investing? Explore your options with us today and save money with our financial strategies and planning services for both businesses and individuals.

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What is Income Tax Return (ITR) ?

Income tax return is the form in which assesses file information about his/her income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Who should file ITR?

ØPerson whose Gross Total Income [before claiming exemption under any section of series 54] exceeds basic exemption limit.

ØCompany or Firm ( Including LLP): Mandatory

ØTrust: If Total Income before exemption u/s 11 exceeds basic exemption limit

ØPolitical Party: If Total Income before exemption u/s 13A exceeds basic exemption limit

ØTrade Unions, Institutions etc: If Total Income before exemption u/s 10 exceeds basic exemption limit

ØResearch Institutes: Mandatory

ØBusiness Trust: Mandatory

ØInvestment Fund: Mandatory

Specific Circumstances:

1. Even if your income falls below the basic exemption limit, it is mandatory to file ITR if you meet any of these conditions:

v If you have deposited a total of Rs. 1 crore or more in one or more current accounts with a bank. However, no such requirement has been specified for deposits made in with post office current accounts.

v If you have deposited more than Rs 50 lakhs in your ‘savings’ bank accounts.

v If you have spent more than Rs 2 lakhs on foreign travel whether for yourself or any other person.

v If the yearly electricity expenditure is more than Rs 1 lakh.

v If your tax is withheld in form of TDS/TCS is more than Rs 25,000. In the case of a senior citizen (above 60 years), this limit is Rs 50,000.

v Your business turnover is more than Rs 60 lakhs.

v Income from your profession is more than Rs 10 lakhs. 

2. If you want to claim an income tax refund

3. If you have earned from or have invested in foreign assets during the FY.

4. If you wish to apply for a visa or a loan

5. If you have loss from business/profession or under capital gains head, you will not be allowed to carry them forward to the next years unless you file the return before the due date.

ITR for NRI’s ?

Irrespective of residential status, any individual whose income exceeds Rs 2.5 lakhs is required to file an income tax return in India. The limit is the same for all NRIs. There is no higher threshold limit for senior or super-senior citizens.

Note that for an NRI, income earned or accrued in India is taxable.

There is one more exception for the NRI taxpayers. Unlike the resident Indians, if there is a long-term or short-term capital gain, the non-residents are not eligible to benefit from the basic exemption limit.

Penalties for Non-Filing Income Tax Return?

Non filing of ITR by 31st July will result in a penalty of Rs 5,000. However, if your income is below Rs 5 lakhs, then the penalty be reduced to Rs 1,000.

Points to be considered @ filing of ITR

1. Choose correct Income Tax Form

2. Verify the ITR after E-filing

3. Report all your Incomes

It is mandatory to report the interest income received from savings or fixed deposit accounts. Banks deducts TDS @ rate of 10%, while the assessee earns interest of more than Rs. 10,000. Hence it becomes imperative that you declare the income from interest in order to avoid notices.

Not reporting exempt income: Many people make the mistake of not reporting income exempt from taxes. It is now mandatory to declare income exempt from Income Tax too, such as PPF Interest, gifts, dividends and Long-Term Capital Gains from listed securities in your tax return.

4. Report correct details

5. Pay all taxes in time

Failing to pay Advance Tax/Self-Assessment Tax: It is mandatory for individual taxpayers to estimate their tax liability and pay advance tax/self-assessment tax before the end of the Financial Year in order to avoid penalty @ 1% per month starting from the end of the relevant quarter. This is required only if your tax liability exceeds Rs. 10,000/- in the Financial Year.

6. Get Organized

If you are an employee and your employer deducts TDS from your salary, the Form 16 that the employer issues to you can be a good starting point since it lists down all details of tax that you have already paid to the Government in the form of Tax Deducted at Source (TDS), your salary components and your Tax Liability.

In case you have not received your Form 16 from your employer, you can look for Form 26AS which lists down the TDS that has been deducted from your salary and been deposited to the Government’s account.

Also, you can keep the following documents handy:

§Pay slips

§CTC Breakup (To claim eligibility under various tax-free income components like HRA, LTA etc)

§TDS Certificates from Bank

§Tax Saving Investment Proofs (To avail deduction under various sections)

§Home and Education Loan & Certificates (if any, in order to avail deductions under Section 80, 80E and 24)

§Bank Statements (required for interest income, gifts received in the relevant Financial Year and dividend income if any)

§HRA Receipts, LTA Expenses and Reimbursement slips

7. Decide how to file

You can file using the Income Tax Department’s public portal online or you can also get Tax Experts to file it for you.

8. Avail Tax Deductions

9. Keep track of TDS. Don’t pay tax twice!

10. Don’t procrastinate and Don’t hurry!

11. And last but not the least, keep the following handy:

ØBank Account details

ØForm 16

ØPAN Number

ØIncome tax e-filing password

ØInvestment Details

ØHome Loan details

ØOther income details

ØAddress

Due dates for filing of return:

Ready to start investing? Explore your options with us today and save money with our financial strategies and planning services for both businesses and individuals.

Visit us at www.cogentprof.com Contact us via email at [email protected] or give us a call at +91 86961 99999