Last-minute tax filing: Follow this checklist to avoid errors, oversights

The July 31 deadline for filing your income-tax return (ITR) has arrived. It is advisable to file your ITR right away and not rely on potential extensions. “Timely submission is crucial. Do not rely on potential extensions, as penalties and interest for late filings can add up quickly,” says Mayank Biyani, associate, PSL Advocates & Solicitors.

Here’s a guide to help you complete your ITR on time.

Gather essential documents

Start by collecting key documents, including PAN card, Aadhaar card, Forms 16, 16A, 16B, 16C, Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS). Also, gather proof of investments like life insurance premiums, Public Provident Fund (PPF), and expense receipts like donations.

 

“Incomplete documentation can lead to major errors by the taxpayer while filing their ITR,” says Alay Razvi, partner, Accord Juris.

Select the correct form

Choosing the appropriate ITR form is crucial. Using the wrong form may lead to a defective return and necessitate refiling.

Handling a job switch

If you switched jobs during the year, manage your tax filing carefully. “Ensure all salary and income details from both the previous and the current employer are disclosed using Form 12B,” says Paritosh Dhawan, principal and founder, Dhawan & Co.

“If an individual left her job in the middle of the financial year, she would require two Form 16s from her employers. If she does not have one, she should contact her previous employer and get it to avoid submitting a long list of documents. Once you have Form 16s from both your employers, create a revised statement of income and tax liability to ensure accurate tax computation,” says Dhawan.

Report all income sources, including rent, and use the deductions under sections 80C and 80D. For House Rent Allowance (HRA), submit rent receipts or adjust them in your tax return.

Verify Form 26AS

TDS is deducted by the payer and remitted to the government on behalf of the payee for various incomes such as salary, interest, commission, and professional fees. Form 26AS provides a consolidated statement of TDS/Tax Collected at Source (TCS), advance tax, and self-assessment tax for the year. “Taxpayers can claim TDS credits against their total tax liability when filing their returns. Ensure TDS claims in your returns match those reported in Form 26AS to avoid issues or notices,” says chartered accountant, Suresh Surana. Verify all transactions in Form 26AS and ensure they are included in your tax filings.

Additional checks

Run a few more checks. “Don’t forget to verify and report your carry-forward losses, which are not set off in earlier years (not just the current year losses). Additionally, reporting any foreign assets or interest in a bank account in Schedule Foreign Assets (FA) is crucial. Failure to do so may result in penalties and prosecution,” says Kunal Savani, partner, Cyril Amarchand Mangaldas. Your ITR must include both taxable and exempt income. Review the exempt income schedule and fill out the form. If a refund is due, the process for getting it is straightforward.

“However, if you owe tax after adjusting TDS and advance payments, calculate the final liability, including interest under sections 234B and 234C. Additional tax may apply to income not subject to TDS, like savings interest or capital gains,” says Ritika Nayyar, partner, Singhania & Co.

If your tax liability exceeds TDS, pay the self-assessment tax on time before filing your return.

Final checks to run before submitting ITR

Verify personal details: Ensure your name, address, and PAN are correct

Check Form 26AS/AIS/TIS: Confirm details match your financial records

Reconcile income: Cross-check income sources with Form 16/16A and other statements

Claim deductions: Verify all eligible deductions and supporting documents

Review tax computation: Ensure accurate tax computation and adjustments

Verify bank details: Confirm bank details for potential refunds

Confirm tax payment: Ensure all taxes due are paid and reflected

Review previous returns: Check last year’s returns for consistency