Preparations You Can Do Before Filing Your Income Tax Return

Income, TDS, deductions, exemptions…know about all the information that you must gather to ensure a smooth ITR filing 2022-23.

Filing Your Income Tax Return
  • The ITR filing last date is approaching, and there is no need to wait for it
  • Start your ITR filing preparation with a little information collection and verification exercise
  • With information like TDS details and Annual Information Statement available online, your ITR filing exercise can be made smoother and error-free

The financial year 2022-23 has ended two months ago. It is the time of the year when you should start making the preparations for filing your Income Tax Return (ITR). You will need information from several sources, so it is better to keep them ready.

Take Stock of the Income

Obtain your bank statement for the financial year and have a look at all the credits. If you have multiple bank accounts, do so for all such bank statements. Firstly, this will ensure that you don’t fail to disclose any income earned during the year. Secondly, the type of income earned decides which ITR you must file. Classify your income into salary income, rental income, business income, capital gains and other incomes, and note them down in one place.

List down the tax-friendly investments and expenses

If you opt for the old tax regime, you can save tax by declaring your investments eligible under sections 80C, 80D and the other deductions under Chapter VI A. The new regime has fewer deductions but does take into account the standard deduction and employer’s EPF contribution. 

Also Read: Looking for tax saving investments in 2023? Here are 8 best ELSS mutual funds in India since their launch

Tax deduction details

The latest copy of 26AS will have the details of the tax deducted from your income and deposited. You can identify non-deposits of your tax by deductors. You should also obtain the Annual Information Statement to get a complete picture of your financials for the previous year. You can compare your income and withheld tax records with these documents, thus ensuring the correctness of your ITR.

Also ReadTDS getting deducted despite zero taxability? Here’s how you can avoid it

Income-specific preparations

  • Salaried assessees should obtain Form 16 for the overview of salary received and tax deducted. Calculations around exempt income like house rent allowance and leave travel assistance must be thoroughly checked
  • People with business income must check their eligibility for presumptive income schemes and compare the taxability with regular business income reporting
  • Investment incomes like shares and mutual funds for the financial year must be obtained
  • Interest income must be obtained from banks against term deposits 

Also Read: You can get these seven tax exemptions even if you choose the new tax regime

Rather than filing your return just before the deadline, starting now will help you avoid mistakes and complete them in a relaxed manner. Depending on the complexity of your financials, seek the advice of a professional consultant to ensure that your taxability is calculated and your ITR is filed correctly.

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Related: AIS Mobile App: What you should know before using this Income Tax App for compliance and pre-filling of returns









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