Income Tax Return or ITR is a form that a person needs to submit to the Income Tax Department of India. It mainly contains all the information about the income of a person and the taxes which have to be paid on it during the year.
There are different forms available such as Income from salary, Income from house property, Income from capital gains, Profits and gains from business and profession, and Income from other sources like the interest of deposits, royalty income, etc. You can get easy tax assessment consultation from Income Tax Filling Services in Gurgaon.
Types of ITR forms
Total 7 types of forms are prescribed by the Income Tax Department. Those are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7, and forms’ applicability will depend on the amount of income, nature, and type of taxpayer. If you want to know more about it then you can take help from various services such as Income Tax Filling Services in Gurgaon. They will provide you with complete guidance about the ITR forms and tell you which is applicable for you.
Things you should know before filing the ITR form
- Choose the right form
It is essential to choose the right form depending upon some facts like the taxpayer’s residential status, and the income that is earned from several sources for an accurate filling.
- New or Old tax regime
The Finance Act, of 2020 has introduced a new tax regime for the taxpayers with several modified tax rates and slabs. Now, taxpayers have the option to choose from new and old tax regimes.
- verify the prepaid taxes with the 26AS form
The taxpayers need to verify their prepaid taxes with form 26AS. If any discrepancy happens it should be informed to the employer or banks, to get that rectified which will be beneficial for the seamless processing of tax returns by the Tax Department.
- Reporting of the exempt income
Taxpayers need to report the exempt income like agricultural income, LIC maturity receipt, etc. If you are confused then you can take help from an Income Tax Return Consultant in Gurgaon for a better understanding.
- Verify the return
Verification is important when it comes to processing your ITR. Without it, the return filed won’t be considered valid. Usually, the Tax department gives 120 days to verify your return.
Conclusion
So, these are some of the things that you have to do before filing ITR. Agencies like Income Tax Filing Services in Gurgaon will help you to understand the basics of ITR so that you can be prepared.