Income Tax Returns: With the deadline for filing Income Tax Returns (ITRs) for the financial year 2023-24 approaching on July 31, salaried employees across India must be gearing up to ensure they receive the maximum refund possible.
To aid taxpayers in this endeavor, here we have outlined key strategies to optimise refunds and minimise tax liabilities:
Claim all eligible deductions and credits
Taxpayers should diligently claim all eligible deductions and credits available to them.
This includes deductions for investments such as Public Provident Fund (PPF), National Savings Certificate (NSC), Equity Linked Saving Scheme (ELSS), and insurance premiums under Section 80C.
Additionally, tax credits for expenses like education loans (Section 80E) and medical insurance premiums (Section 80D) should not be overlooked.
Ensure accuracy and completeness of information
Accuracy and completeness in providing information are paramount when filing tax returns.
Any errors or omissions can lead to delays or even rejections.
Taxpayers should review all details including income sources, investments, and expenses to avoid discrepancies.
Utilise Exemptions for House Rent Allowance (HRA) and Leave Travel Allowance (LTA)
Individuals receiving HRA or LTA from their employers can avail exemptions by submitting rent receipts or travel bills respectively.
By utilising these exemptions, taxpayers can reduce their taxable income and consequently increase their refunds.
File returns on time
Filing tax returns before the deadline not only avoids penalties but also ensures timely processing.
Early filing allows taxpayers to receive refunds sooner, especially if they are eligible for them.
Keep records of investments and expenses
Maintaining comprehensive records of investments and expenses throughout the financial year facilitates accurate tax filing.
Documenting transactions related to investments, charitable donations, and other deductible expenses enables taxpayers to claim the maximum refunds rightfully.
Seek professional assistance if necessary
For complex tax situations or if unsure about certain deductions, seeking professional guidance from tax consultants or chartered accountants can be beneficial.
Tax experts can provide personalised advice and ensure that taxpayers maximise their refunds while complying with tax regulations.
