Income Tax Return: How to prepare for hassle-free tax compliance? Here is a 10-point checklist

livemint.com:

Tax filing season is coming and just like summer individuals must plan to beat the heat. To avoid last-minute hassles and make sure that tax benefits and claims are correctly reported and documentation is proper, enclosed below is a ten-point checklist. 

Selecting the correct ITR form: Choose the appropriate ITR form for the FY 23-24 based on the criteria summarised below.

ITR Form

When are you eligible?

When are you ineligible?

ITR – 1

§  salary/pension,

§  one house property

§  other sources

§  Agricultural income < ₹5k

If you are a Non-resident

If you are a director in a company

If you hold unlisted equity shares

If you have more than one house

If your Agricultural income > ₹5k

If you have foreign income or assets

ITR – 2

If you are not eligible to file ITR-1 and where you do not have any business or professional income

If you have any income from business or profession

ITR – 3

If you have business income or professional income

If you are not eligible to file ITR 1, ITR 2 or ITR 4

None

ITR – 4

Resident Individuals with a total income of up to ₹50 Lakhs including business income computed as per presumptive taxation.

Similar to ITR 1

Residential status determination: This determination of residential status is based on your physical presence in India.

You would be a resident in India if you satisfy either of the two basic conditions:

(a) Stay in India is ≥ 182 days in FY 23-24. 

(b) Stays in India is ≥ 60 days** in FY 23-24 and ≥ 365 days in the preceding 4 years. 

In the case of an Indian citizen who leaves India for employment, 60 days get replaced by 182 days. For an Indian citizen or PIO coming on visits to India, 60 days get replaced by 120 days (for individuals with an Indian source income of more than 15 lacs)