First Step: Verify Your Return
Simply filing your Income Tax Return (ITR) is not enough; you must verify it to complete the process. An unverified return is considered invalid by the Income Tax Department. You have 30 days from the date of filing to complete this crucial step. The
quickest way is to e-verify online. You can use an Aadhaar-based OTP, an Electronic Verification Code (EVC) generated through a pre-validated bank or demat account, or via net banking. If you cannot e-verify, you must print the ITR-V acknowledgement form, sign it in blue ink, and send it via speed or ordinary post to the Centralised Processing Centre (CPC) in Bengaluru.
Track Your Refund Status
If you are due a refund, you can track its status online. The process typically begins only after your return has been successfully verified. You can check the status on the official e-filing portal or the TIN NSDL website. To do this on the e-filing portal, log in to your account, navigate to the 'e-File' menu, select 'Income Tax Returns', and then click on 'View Filed Returns'. This will show the status of your return for the relevant assessment year, including the refund status. Ensure your bank account details provided in the ITR are correct and the account is pre-validated to avoid any delays in receiving the refund.
Understand and Respond to Notices
Receiving a notice from the Income Tax Department can be intimidating, but it's not always a cause for panic. Often, it's a simple intimation under Section 143(1), which is an automated summary of the department's computation of your tax liability. This notice will show if your calculations match theirs, if a refund is due, or if you have more tax to pay. Other common notices for salaried individuals include a notice for a defective return (Section 139(9)) due to missing information, or a mismatch between your ITR and your Form 26AS or Annual Information Statement (AIS). Always read any notice carefully and respond within the specified deadline to avoid penalties.
Organise and Secure Your Documents
Don't be in a hurry to discard your tax-related paperwork after filing. It is crucial to keep these documents organised and safe. The Income Tax Act requires you to preserve tax records for a specific period, as the department can ask for them during scrutiny. Generally, you should keep your records for at least six to eight years from the end of the relevant assessment year. Key documents to save include your Form 16, bank statements, proofs of investment and deductions (like HRA rent receipts and insurance premium payments), TDS certificates, and a copy of your filed ITR acknowledgement.
Plan for the Next Financial Year
Now that you've completed this year's filing, it's the perfect time to plan for the next one. Waiting until the last minute often leads to rushed decisions. Review your tax-saving investments under sections like 80C, such as ELSS, PPF, or life insurance premiums. You can start a Systematic Investment Plan (SIP) in an ELSS fund to spread your investment throughout the year instead of a lump sum in March. Also, review your salary structure and inform your employer at the beginning of the financial year whether you want to opt for the old or new tax regime, as this will determine how TDS is deducted from your salary.
