Why You Should Double-Check Pre-Filled Information While Filing Income Tax Return
In her budget address, Finance Minister Nirmala Sitharaman stated that we would soon have pre-filled data in income-tax return (ITR) forms. It should be noted that for the 2019-20 fiscal year, the ITR-1 and ITR-4 forms already feature pre-filled information about the assessee.
The tax agency recently issued a warning to taxpayers who use pre-filled ITR forms, advising them to double-check all information on the forms before submitting them for assessment. Some companies have failed to issue Form 16 since the Central Board of Direct Taxes (CBDT) has extended the deadline until July 10th.
Remember that pre-filled information will be provided only on ITR 1 and ITR 4 if you file the return online using the department's e-filing website. If the form is downloaded in Excel or Java format, no information will be pre-filled.
ITR-1 and ITR-4 Forms:
Residents with a total income of less than 50 lakh should use ITR-1. Furthermore, the source of income should only include salary, one residential property, other sources (such as bank deposit interest), and agricultural revenue of up to Rs. 5,000.
ITR-4 is for resident individuals, Hindu Undivided Families (HUFs), and corporations with a total income of up to 50 lakhs as well as those who opt to submit their income under the presumptive taxation plan (PTS). PTS allows you to compute your tax based on a projected income or profit.
Businesses with a total turnover of less than 2 crore and qualifying professionals with gross receipts of less than 50 lakh in a fiscal year can use the plan. Those who choose PTS are not obligated to keep accounting records.
However, keep in mind that neither the ITR-1 nor the ITR-4 forms may be used to submit returns by an individual who is a director of a corporation or has invested in unlisted equity shares.
Those with capital gains income should file an ITR-2 form, while those with business and professional income should file an ITR-3 form.
Last year, the income tax department decided to offer pre-filled ITR forms containing data on income and taxes paid by assesses over the year in an effort to simplify the tax filing procedure.
The goal was to leverage information already available to the department to simplify and expedite the tax filing process for taxpayers.
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