The deadline for filing Income Tax Return (ITR) for the Assessment Year 2023-24 is approaching, with July 31, 2023, as the last date. It is crucial to file returns on time to avoid penalties and to optimize tax refunds. Experts emphasize the importance of verifying income details, tax deductions, and TDS reflected in 26AS before filing the return to maximize tax-saving opportunities.
Here are some effective tips to help you maximize your tax refund:
File ITR on time: Filing returns before the due date is essential to avoid penalties and ensure a smoother refund process. As per Section 139(1) of the Income Tax Act, taxpayers must submit their return form by the due date.
Choose the correct tax payment option: Select the tax payment option that aligns with your specific needs. If you do not have long-term investments like Public Provident Fund (PPF), insurance policies, Equity Linked Savings Scheme (ELSS), home loan, or health insurance, the new tax regime may be a better option for you.
Confirm your e-return: Within 30 days of filing the ITR, it is crucial to verify the return. Failure to do so will invalidate the return, requiring the taxpayer to file ITR again if the deadline has not passed. There are six methods for online verification, including OTP sent to the Aadhaar-linked mobile number, net banking, Electronic Verification Code (EVC) through a bank account, and obtaining EVC from a bank ATM.
Claim exemptions: Ensure that you claim all the exemptions you are entitled to. This will reduce your tax liability and increase the refund amount. Exemptions can include investments in PPF, National Savings Certificate (NSC), National Pension Scheme (NPS), life and medical insurance premiums, and interest paid on a home loan. It is important not to rely solely on deductions mentioned in Form 16, as there may be other eligible expenses not included.
Validate bank account: Validate your bank account and ensure its correct verification on the Income Tax Return Portal. The validation process is necessary as the tax department credits refunds only to validated accounts on the e-filing portal. Ensure validation before filing the return to avoid any delays in refund processing.
