Simplifying ITR Filing: A Guide to Hassle-Free Tax Returns

Understanding the Importance of Income Tax Return (ITR) Filing

Filing your Income Tax Return (ITR) is an annual task where individuals and businesses report their income, expenses, and tax liabilities to the government. Despite being an essential financial duty, many find ITR filing overwhelming due to its perceived complexity. This guide will help demystify this concept, making it easier for everyone to understand and navigate.

Common Mistakes to Avoid

1.??? Incorrect Form Selection: Using the wrong ITR form can lead to rejection or incorrect return processing. Let’s look at the types of forms:

ITR-1 (Sahaj): Individuals with income from salary, one house property, and other sources (excluding lottery winnings and income from racehorses).

ITR-2: Individuals and HUFs not having income from business or profession.

ITR-3: Individuals and HUFs having income from business or profession.

ITR-4 (Sugam): Individuals, HUFs, and firms (other than LLP) having income from a presumptive business.

ITR-5: Partnership firms, LLPs, Association of Persons (AOPs), Body of Individuals (BOIs), etc.

ITR-6: Companies other than those claiming exemption under section 11.

ITR-7: Entities claiming exemption under sections 139(4A), 139(4B), 139(4C), or 139(4D).

2.??? Mismatched Credentials: The personal details on the tax portal and the bank account should be the same. Your refundable amount will not be credited to your bank account if they don't match.

3.??? Ignoring Form 26AS/AIS/TIS: Form 26AS is a tax credit statement, that provides a detailed overview of the financial activities for a specific year. It is necessary to cross-verify your tax deducted at source (TDS) with Form 26AS to avoid discrepancies.

4.??? Omitting Income Sources: Omitting any income source while filing your Income Tax Return can lead to legal penalties, interest on unpaid taxes, and scrutiny from tax authorities. Accurate reporting ensures compliance, avoids complications and maintains financial integrity.

5.??? Missing/availing excessive Deductions: Missing or availing excessive deductions is a common mistake to avoid during ITR filing. Claiming deductions, you're not eligible for can lead to penalties and scrutiny from tax authorities. On the other hand, failing to claim eligible deductions can result in overpaid taxes. Accurate deduction claims ensure compliance and optimize your tax liability.

Legal N Tax Advisory LLP: Your Partner in Seamless ITR Filing

At Legal N Tax Advisory LLP, we understand that ITR filing can be overwhelming. Our team of experts is here to guide you through every step, ensuring accuracy and compliance. We offer:

• Comprehensive Document Review: We help you gather and review all necessary documents.
• Form Selection Assistance: Guidance in choosing the correct ITR form based on your financial situation.
• Accurate Filing: Our professionals ensure your return is filed correctly, minimizing the risk of errors.
• E-Verification Support: Assistance with completing the e-verification process smoothly.
• Post-return Services: At our firm, we offer post-return services including rectifications, responding to tax notices, tax planning advisory, compliance monitoring, and support during assessments or audits to ensure seamless tax management. Additionally, we hold the responsibility until the time the refundable amount gets credited to your account.
• Hassle-free Filing: Legal N Tax Advisory LLP is committed to making your ITR filing process seamless and hassle-free. Reach out today to ensure your financial compliance and peace of mind.