Habit 1: Organise Your Documents First
Before you even log into the e-filing portal, take a moment to gather all necessary paperwork. Rushing this step is a common cause of mistakes. You will need your PAN, Aadhaar, bank statements, and Form 16 from your employer. If you have income from other
sources, collect interest certificates from banks, capital gains statements from brokers, and any rent receipts. Having all documents handy prevents the chaos of searching for information mid-filing and significantly speeds up the process.
Habit 2: Cross-Verify with Form 26AS and AIS
Do not file blind. The Income Tax Department provides two powerful tools: Form 26AS and the Annual Information Statement (AIS). Form 26AS is a summary of all the tax that has been deducted or collected on your behalf. The AIS is even more comprehensive, listing various financial transactions reported by banks, mutual funds, and other entities. Before filing, download these forms from the e-filing portal and carefully match the information with your own records. Any discrepancy between what you report and what the department knows can trigger a notice, so it is crucial to reconcile these details.
Habit 3: Choose the Correct ITR Form
Selecting the wrong Income Tax Return (ITR) form is a frequent error that can lead to your return being marked as 'defective'. The correct form depends on your income sources. For example, a salaried individual with no other income might use ITR-1. However, if you have income from capital gains, foreign assets, or from more than one house property, you may need to file ITR-2. Taxpayers with income from a business or profession generally need to use ITR-3 or ITR-4. Take a minute to check which form applies to your financial profile for the year.
Habit 4: Report All Income Sources
Many taxpayers, especially those who are salaried, focus only on the income mentioned in their Form 16. However, you are required to report all income, regardless of the source. This includes interest earned from savings accounts and fixed deposits, dividend income, rental income, and any earnings from freelance work or capital gains. Even if an income source seems small, failing to disclose it can cause a mismatch with your AIS and may result in a tax notice later.
Habit 5: Double-Check Deductions and Personal Details
When rushing, it is easy to make typos or claim incorrect deductions. Double-check your personal information, including your PAN, name, and date of birth. Ensure your bank account details are correct and the account is pre-validated on the portal to facilitate a timely refund, if any. When claiming deductions under sections like 80C or 80D, ensure you are eligible and have the necessary proof for each claim, such as insurance premium receipts or investment statements. Claiming deductions without valid supporting documents can attract scrutiny.
Habit 6: File and E-Verify Immediately
Simply submitting your ITR form is not the final step. Your return is considered invalid until it is verified. The tax department provides a 30-day window for verification after filing. The quickest method is e-verification, which can be done in minutes using an Aadhaar OTP, your net banking portal, or a pre-validated bank or Demat account. Waiting to verify is a risky habit, as forgetting this crucial step means your filing effort goes to waste. E-verify immediately after submission to complete the process.
