Why should you double-check the pre-filled information when filing the tax return

In her budget speech, Finance Minister Nirmala Sitharaman said we will soon have pre-filled data in tax return forms (ITRs). It should be noted that for the 2019-2020 financial year, the ITR-1 and ITR-4 forms already include pre-filled information on the person evaluated.

Residents with total income below 50 lakh must use ITR-1

The tax agency recently issued a warning to taxpayers who use pre-populated ITR forms, advising them to double-check all information on the forms before submitting them for assessment. Some companies have not issued Form 16 since the Central Commission for Direct Taxation (CBDT) extended the deadline to July 10.

Remember that pre-populated information will only be provided on RTI 1 and RTI 4 if you file the return online using the ministry’s e-filing website. If the form is downloaded in Excel or Java format, no information will be pre-filled.

Forms ITR-1 and ITR-4:

Residents with total income below 50 lakh must use ITR-1. Also, the source of income should only include salary, residential property, other sources (such as interest on bank deposits) and agricultural income of up to Rs. 5,000.

The ITR-4 is intended for resident individuals, Hindu Undivided Families (HUFs) and corporations whose total income does not exceed 50 lakhs, as well as those who choose to submit their income under the tax plan. lump sum (PTS). PTS allows you to calculate your tax based on projected income or profit.

Businesses with a total turnover of less than 2 crore and qualified professionals with gross receipts of less than 50 lakh in a financial year can use the plan. Those who choose PTS are not required to keep accounting records.

However, keep in mind that neither Forms ITR-1 nor Forms ITR-4 can be used to submit statements by someone who is a director of a company or who has invested in unlisted stocks.

Those with capital gains income must file Form ITR-2, while those with business and professional income must file Form ITR-3.

Last year, the Income Tax Department decided to offer pre-filled ITR forms containing data on income and taxes paid by taxpayers during the year with the aim of simplifying the declaration procedure. tax.

The goal was to leverage information already available to the department to simplify and speed up the tax filing process for taxpayers.

First published: 09 July 2022, 02:33 IST