IT Declaration

What is IT Declaration?

IT or Income Tax Declaration an important step in the tax filing process in India, where taxpayers report their income and claim eligible deductions.

What Documents are required for IT Declaration?

Before filing your IT Declaration, it is essential to collect all the necessary documents like Form 16, bank statements, and investment proofs to substantiate your income and spending and thereby prove your eligibility to claim for any deductions.

Opting for the Right ITR Form - A Key Move in Income Tax Filing

• To make the process go smoothly and to help you prove that you fall under the right category, and therefore help you substantiate your claims, the Income Tax Department provides various ITR forms for different taxpayer categories. For example:

• ITR-1 (Sahaj), which serves individuals with an income cap up to ₹50 lakh from salary and one house property.

• ITR-2 for those earning from multiple sources or having capital gains.

• ITR-3 for individuals with business or professional income.

• So, the filing must be carried out only after identifying your appropriate category and choosing the right form.

How to Calculate Taxable Income?

• To calculate your taxable income, first, compute your total income by aggregating all sources. After that, deduct eligible exemptions and deductions under sections like 80C and 80D. The figure that you get after this is your taxable income.

• The Filing Process -

• You can file your ITR electronically. To do that, follow the below steps.

• Go to the https://www.incometax.gov.in/iec/foportal/ and log in using your PAN

• Select the assessment year and ITR form

• Fill out personal details, income information, and deductions accurately.

Why Verify Your ITR?

Once you have completed filing your ITR, it is necessary to verify it to maintain correct records and to avoid any tax notices. You can do it either electronically or by sending a physical copy of ITR-V to the Centralized Processing Centre within 120 days.

What are the Benefits of a Timely IT Declaration?

• Timely income tax declaration helps you with the avoidance of penalties due to compliance-related legal complications. It facilitates accurate employee record management systems, which also means that you can expect to get timely refunds for any taxes paid in excess.