If your income falls within the tax slab, then it is necessary for you to file Income Tax Return (ITR). Often people make mistakes in filing ITR. This increases the possibility of getting income tax notice. There can be a penalty for filing revised ITR. This time the last date for filing ITR has been extended from 31 July to 15 September.
Keep these 10 things in mind while filing return…
1. Do not choose the wrong form, fill the correct form according to the profession. There are forms from ITR-1 to 7 for different types of taxpayers. If there is income from salary, bank interest, pension or house, then ITR-1 should be filled. Also show dividend income and capital gain from shares in your return. You may get a notice from the Income Tax Department for filling the wrong return form.
2. If you have made big expenses, then it is important to have a clear source of income if you have made big expenses. For example, your annual electricity bill is more than one lakh. If you have spent more than 10 lakh on credit card or have spent big money like buying an expensive car or have spent a lot on foreign travel, then you may get an income tax notice if there is mismatch between your income and expenses.
3. Matching of details of Form 26AS and Form 16 is a must. Before filing ITR, cross-check Form 26AS and Form 16 or TDS certificate. If details are different, find out the reason. Get it corrected from the employer. Refund may be less. Matching of income with AIS (Annual Information Statement) and TIS (Taxpayers Income Summary) is a must.
4. Do not make mistakes in bank accounts and personal information. Personal details like name, address, mail ID, phone number, PAN, date of birth etc. should be written correctly in ITR. These should match with your PAN card. If you are claiming refund then your bank details should also be correct. If you have more than one bank account then fill the details of all.
5. Penalty up to 200% for not disclosing all sources of income Declare all sources of income. Concealing income from other sources can attract a penalty of 50% to 200% of the tax liability. Fill in the details of your foreign income, assets, accounts and shares, and other income and liabilities in the ITR in the prescribed format. Whether the income is taxable in India or not.
6. Do not hide tax-exempt income like agricultural income A big mistake while filing income tax returns is not declaring exempted income. For example, agricultural income is tax-free. Profit share from a partnership firm is tax-free. If you have income from this, then enter it in the prescribed column. This is important to present a complete picture of your financial transactions.
7. Be alert if you have changed more than one job in a financial year. If you have changed jobs, give the Form 16 received from the old employer to the new employer. So that the new employer can deduct the correct TDS. You can get the proper benefit of standard deduction. If you do not give information, it is possible that you have got the benefit of standard deduction from both the employers, which is wrong. You may have to pay more tax at the time of return.
8. Do not make false claims while availing HRA Under the old tax regime, salaried persons could claim HRA exemption as a part of their salary. Rent agreement, rent receipts and PAN number of the landlord for rent of Rs 1 lakh+ per annum are required for valid claims. Residence in rented premises is also a must, as the department can verify your claim.
9. PAN card should not be inactive and should be linked to Aadhaar. Income tax department can impose a fine of up to 10 thousand on those whose PAN card has become inactive. If PAN and Aadhaar are not linked then you will not be able to file ITR.
10. Do not miss e-verification E-verification is necessary after filing ITR. If for some reason you are unable to do this, then sign the ITR-V form within 30 days of filing and send it to the Centralized Processing Center (CPC) by post.
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