Tax Planning and Income Tax Returns Filing for Individuals

Tax Planning and Income Tax Returns Filing for Individuals

The session on tax planning and ITR filing for individuals was a 90 minutes interactive seminar that helped us get an overview of elements that we need to consider to plan our taxes and understand the income tax portal by the government, to file the returns.

The session started with a brush up on basics of income tax like; previous year, current year, advantages and disadvantages of the 2 different tax regime (old and new tax slabs etc). We then moved on to some important terms in tax planning – deductions and exceptions. The speaker gave a brief explanation of the provisions under different sections from 80C to 80U. Common exemptions like HRA, LTC and interest received from PF were briefed. She also touched upon how one can use these sections to understand their sources of incomes and ways to effectively reduce the tax burden. There was a demo on calculation of tax liability for a salaried person. Later she explained the elements of the income tax portal and summarised the 4 different filing forms – ITR 1, ITR 2, ITR 3 and ITR 4. She taught us the way of choosing the right form that caters the nature of the assessee to avoid penalties. We then looked at each form and understood the deductions there. She also explained about 3 other important forms- Form 16, Form 26 AS and AIS; that they need to comply with each other with respect to all the details. She finally gave some reference on TDS TRACES portal. The session ended with some question and answers for clarification. Effective tax planning is essential for every informed citizen.