What to Do After Filing Your ITR

Important Steps After Filing ITR

After submitting your return, there are a few crucial steps you must take to ensure everything is in order and you get the maximum benefits. So, what is the next step after filing ITR?

Let us break it down into simple steps for you:

Verify Tax Returns

The process of filing your ITR remains incomplete until you verify it by signing a document to confirm your submission. The Income Tax Department provides you 120 days after you have filed the returns to verify the same. Without verification, your tax returns will not be considered valid. You can verify your ITR in the following ways:

1. E-Verification:

• Use an Electronic Verification Code (EVC) through net banking.
• Generate an OTP on the e-filing portal using your Aadhaar number.

2. Physical Verification:

• Print and sign the ITR-V form (acknowledgment receipt).
• Mail it to the Central Processing Center (CPC) in Bengaluru.

By completing this step, you ensure that your filing is accepted and any eligible refunds can be processed swiftly. E-verification is faster and more convenient, so opt for that if possible.

Trace the ITR-V Status

If you opt to verify your ITR by sending a physical copy of the ITR-V to the Central Processing Center (CPC) in Bengaluru, tracking its status is important. CPC Bengaluru typically sends a confirmation via email or SMS if they receive your ITR-V. You can also track its status on the Income Tax Department’s official website to ensure it is received and processed without delays.

Make sure to check that the status shows as “Successfully Verified” or “Processed” to confirm your return is on track.

Check for Intimations / Notices

Sometimes, the Income Tax Department might send you intimations or notices if there are discrepancies in your filing. These intimations may include information about tax refunds, discrepancies in your filed return, or any pending actions required from your end. However, you do not need to panic, as most of the time, these are routine checks.

Log in to your account on the tax portal and look for any notices under the “My Account” section. Respond promptly if action is required. Being proactive in addressing such intimations will help you resolve issues promptly and avoid potential penalties.

Safe-keep Documents

You have filed your return, but do you have all your documents organized? One crucial step in “what is the next step after filing ITR” is to securely store all documents related to your ITR filing. Do not rush to discard these records, thinking they are no longer needed. The Income Tax Department can request details from your previous filings during random checks, and having the right documents on hand will save you from unnecessary stress. Some documents to keep include:

• Form 16 and Form 12B
• Bank Statements
• Tax Exemption Proofs
• ITR Acknowledgement
• Tax Paid Challans
• TDS (Tax Deducted at Source) Certificates
• Gift Deeds

These documents can also be helpful if you need to revise your ITR or check the status of your filing. Also, staying organized ensures you are prepared for any future queries or adjustments.

Double-check Bank Details and Address

There are additional things that need to be kept in mind once the filing is done, such as ensuring that your bank account details and address in the tax portal are up to date. If you have multiple bank accounts or have moved to a different city, double-checking this information becomes even more critical. Correct bank details are essential for receiving your income tax refund timely, while an accurate address ensures smooth communication with the tax department. You must also periodically check your income tax refund status to ensure that there is no delay.

Avoid the Penalty by Paying Advance Tax

If you anticipate having a tax liability exceeding ₹10,000 in a financial year after accounting for TDS, you are liable to pay advance tax. This tax should be paid in instalments over the financial year to avoid penalties for underpayment under Sections 234A, 234B, and 234C of the Income Tax Act.

If you have a capital gain from selling an asset, you can either reinvest it as per income tax rules, deposit it in a capital gains account scheme, or pay the applicable advance tax. Calculating your tax liability accurately and paying advance tax on time will help you stay compliant with tax regulations.

Check Mails

The Income Tax Department often sends communications to your registered mail address. It is important to read these emails and not ignore them. The department sends an email confirmation when you successfully file your returns. You may also receive communication about IT return status, notices, or tax dues in your mail. Therefore, you must check your emails regularly to ensure you do not miss any important communication.

Check Refund Status

If you have a refund claim on the ITR, you need to make an income tax refund enquiry regularly. It is a very simple activity, and you only need the assessment year and Permanent Account Number (PAN) details to check the status.

Log in to the tax portal and go to the “Refund/Demand Status” section. It will show whether your refund is processed, pending, or credited. Refunds are usually credited within a few weeks, but delays can happen, so keep tracking it.

Optimize Your Taxes for Better Savings

After filing your ITR, take some time to analyze your financial situation and explore avenues to optimize your taxes for better savings. Consider investing in tax-saving instruments such as Equity-Linked Saving Schemes (ELSS), Public Provident Funds (PPF), National Pension System (NPS), or tax-saving fixed deposits. Additionally, explore deductions available under various sections of the Income Tax Act to maximize your tax benefits.

If you are unsure about what is Income tax return and how to file ITR to optimize your taxes, seek advice from experts. Understanding these things better and planning ahead can make a huge difference in your savings.

Wrapping Up

Your task does not end with filing the returns, as mentioned above. There are additional things that you need to check periodically, and you must seek the income tax status to ensure you do not forget any important steps in ITR filing.

Following the steps mentioned above for “what is the next step after filing ITR” will help ensure that your return is processed smoothly and you avoid unnecessary hassles. Whether it is verifying your ITR, checking notices, or tracking refunds, staying proactive helps save time and money.

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