As a taxpayer, it is your sole obligation to ensure that income tax return (ITR) is filed accurately and within the due date. While the data made available in the pre-filled ITR creates transparency and provides the taxpayer an opportunity to reconcile the information with income tax records, solely relying on the pre-filled forms does not absolve the taxpayer from their obligation.
Accordingly, cross-examining data in pre-filled ITR forms is paramount.
General information such as name, address, and date of birth are auto-populated in the ITRs based on PAN number. However, not all information is based on PAN alone. Details such as residential status which are very integral to the ITR form are auto-populated based on previous year’s ITR.
Ensure that details for the relevant period year are accurate and updated.
Details such as employer name, address, and TAN are auto-populated based on the income tax information provided by your employer and should match with the details in Form 16. However, you need to manually enter information such as the nature of the employer, break-up of salary, and perquisite.
House property schedule
Taxpayers who have income from rent/deemed rent or have housing loans are required to provide details in the House Property Schedule. This schedule is auto-populated based on the details in the previous year’s ITR. Information on rental income is only pre-filled in case TDS is deducted by the tenant. You have to manually enter details of interest on housing loan, etc.
Income from other sources
Passive income such as interest and dividends have to be reported in schedule ‘income from other sources’. This schedule is pre-filled based on information provided by the bank and other financial institutions. Ensure that the details of the amounts as per income tax records reconcile with the actual amount received in the account or accrued as per the interest certificate issued by the bank.
Deduction under Chapter VIA
This schedule is prefilled, based on deductions claimed in the previous year’s ITR or information provided to the employer. The taxpayer should ensure that deduction amounts are accurately provided and updated for the relevant period.
Pre-filled ITRs ensure that all details of income and corresponding TDS available with the income tax department are provided to the taxpayer before filing the ITR. It aims to assist the taxpayer with the accuracy of their ITR. Although the filing process is made easy with the pre-filled data, the task of verifying, reconciling and updating the data is of vital importance.
The writer is partner, Nangia Andersen India. Inputs from Neetu Brahma.