Why Validation is Crucial This Year
The era of manual data entry for tax returns is rapidly being replaced by a system of verification. The Income Tax Department now pre-fills a significant portion of your return using data from various sources. This information is consolidated in your Annual
Information Statement (AIS) and summarised in the Taxpayer Information Summary (TIS). While this is designed to make filing easier, it places the responsibility on you, the taxpayer, to verify that this pre-filled data is correct. Simply accepting the data without checking can lead to issues, as the information in the AIS can sometimes be incorrect, duplicated, or incomplete. Correct validation ensures a faster, smoother filing process and significantly reduces the chances of receiving a tax notice later.
Your Personal Details Checklist
The first step is to ensure all your personal information on the e-filing portal is up to date. This includes your name, PAN, date of birth, address, and, most importantly, your primary mobile number and email ID. The tax department uses these for all communications, including sending OTPs for verification and intimations about your return status. An incorrect email or mobile number could mean you miss crucial updates. Log in to the portal and navigate to your profile to cross-check these details. If anything needs updating, do it immediately and e-verify the changes to ensure they are saved correctly.
Scrutinising Your Income Sources
Your AIS will contain detailed entries for various income sources, including salary, interest from savings accounts and fixed deposits, dividend income, and proceeds from the sale of securities like stocks and mutual funds. Do not assume this data is complete or entirely accurate. Cross-reference every entry with your own records: your Form 16 for salary, bank statements for interest income, and statements from your broker for capital gains. Sometimes, interest from a savings account may be missed, or a transaction might be duplicated. If you find a discrepancy, you have the option to provide feedback directly on the AIS portal to correct it. Ignoring a mismatch, especially if the AIS shows higher income than you've declared, can trigger an automated notice from the tax department.
Validating Deductions and Tax Credits
Just as with income, you must verify the tax credits available to you. Your Form 26AS and AIS will show the Tax Deducted at Source (TDS) by your employer, banks, and other entities. Ensure these amounts match the deductions you are claiming. If your employer deducted tax but it's not reflecting correctly, you need to get it rectified. Beyond TDS, carefully review all the deductions you plan to claim under sections like 80C (for investments in PPF, ELSS, etc.), 80D (for health insurance premiums), and others. Make sure you have valid proof for every deduction claimed. The ITR form now requires more detailed disclosures for certain deductions, so being prepared with all documents is essential for a compliant filing.
The Final Check: Tax Paid Verification
Before you finally submit, you must verify the 'Tax Paid' section of your ITR form. This includes not only TDS and Tax Collected at Source (TCS) but also any advance tax or self-assessment tax payments you have made during the financial year. Check the challan details (BSR code, date, and amount) to ensure they are correctly captured in your return. An error here could result in a mismatch during processing, leading to an incorrect tax demand or a delay in receiving your refund. Double-checking these payment details against your bank records is a crucial final step for a flawless submission.
What Happens After Filing?
Submitting your ITR is not the final step. You must verify it, preferably through an electronic method like Aadhaar OTP or Net Banking, within 30 days of filing. An unverified return is considered invalid, as if it were never filed at all. After successful verification, the department processes your return. If everything is in order, you will receive an intimation under Section 143(1) confirming that your return has been processed. Keeping an eye on your email and the portal for this confirmation provides peace of mind that your tax-filing duties for the year are complete.
