The ultimate date to document source of revenue tax returns (ITR) this 12 months is July 31. If you’re a Gen Z and submitting your ITR for the primary time, it might be a frightening procedure. But do not fret, we will be able to come up with the whole thing you wish to have to learn about submitting an source of revenue tax go back.
Here is the tick list which you wish to have to bear in mind for submitting your returns.
1. Tax regime: Union finance minister Nirmala Sitharaman in her Budget 2023 speech had introduced a brand new tax regime which would be the default tax regime. But the taxpayers will have the ability to avail some great benefits of the outdated tax regime.
Amit Gupta, managing director at SAG Infotech, informed Hindustan Times,”Depending on your income, deductions, and exemptions, you can evaluate whether the new tax regime or the old regime is more beneficial for you. Consider consulting a tax professional to assess which option suits your specific circumstances.
2. Deductions under Section 80C: It is considered to be one of the most popular sections of the Income Tax Act as it allows taxpayers to cut their taxable income. It allows for a maximum deduction of up to 1.5 lakh per year from a citizen’s total salary during a financial year. Remember, the deductions are not available if you choose to pay tax under the new regime.
The investment options under Section 80C are National Pension System, Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), Senior Citizens Savings Scheme etc.
“In addition to Section 80C, there are other sections under the Income Tax Act that offer deductions. For instance, Section 80D allows deductions for health insurance premiums paid for yourself, your family, and your parents. This can significantly reduce your tax liability while providing essential healthcare coverage. Section 80E offers deductions for interest paid on education loans, making it easier for you to pursue higher education without worrying about the financial burden. Furthermore, Section 80G allows deductions for donations made to specified charitable institutions, encouraging charitable philanthropy while reducing taxable income,” Gupta said.
3. Form 15G/15H: They are basically self-declaration forms which a taxpayer submits requesting the bank not to deduct tax deducted at source (TDS) on interest income as their income is below the exemption limit.
On Form 15G and 15H, SAG Infotech’s Amit Gupta said,”This shape is helping you steer clear of Tax Deducted at Source (TDS) deductions on pastime source of revenue from mounted deposits and different assets. It guarantees that you do not pay pointless taxes on source of revenue that falls.” below the taxable threshold”.
4. Keep monitor of bills: It is very essential to stay monitor of the bills. It is really helpful to take care of correct data and receipt of the bills wherein you’ll be able to declare eligible deductions and scale back taxable source of revenue.
“Tax-saving investments play a significant role in reducing your tax burden. The National Pension Scheme (NPS) is a popular option that not only helps you save taxes but also provides retirement benefits. By investing in tax-saving mutual funds like Equity Linked Savings Schemes (ELSS), you can grow your wealth while enjoying tax benefits”, Gupta added.
5. File ITR on time: You should document your source of revenue tax go back on time to steer clear of consequences and pastime fees. It now not simplest guarantees compliance with tax rules but in addition prevents pointless monetary burden. However, Gupta maintained that it is very important to talk over with a professional tax skilled or chartered accountant, who can give customized steering according to your particular monetary state of affairs, will let you optimize your tax-saving methods, and make sure compliance with tax rules.