Outlook Money
Most salaried individuals wait to get Form-16 from their employer, which is important for filing their ITR. To avoid any last minute problem due to high traffic on the income tax website, one should file ITR early.
After receiving Form-16 from one’s employer, an individual should gather and organise all the documents required to file his/her ITR. One should also match the details of Form 26AS and Annual Information Statement (AIS).
Salaried taxpayers should choose either ITR-1 or ITR-2. The first form can only be used by resident Indians and ordinarily resident Indians whose annual income is less than Rs 50 lakh.
People who do not generate income from business or profession should opt for ITR-2. For instance, if an individual holds a foreign bank account or any other asset outside India, then he/she has to use ITR-2 instead of ITR-1.
If the employer has calculated tax under the new tax regime and the taxpayer wants to switch to the old tax regime and claim tax deduction, he/she might face inquiries from the income tax department due to a mismatch in Form-16 and the ITR.
If one does not have sufficient documentary evidence to support any tax deduction claim, then one should avoid making a claim.
Compiled by Syed Muskan