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 can 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, the annual electricity bill has come to more than one lakh. If you have spent more than 10 lakhs on credit card or have spent a lot on 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. It is important to match the details of Form 26AS and Form 16
Before filling ITR, cross-check Form 26AS and Form 16 or TDS certificate. If the details are different, find out the reason. Get it corrected from the employer. Refund may be less. It is important to match the income with AIS (Annual Information Statement) and TIS (Taxpayers Income Summary). 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. Hiding income from other sources can attract a penalty of 50% to 200% of the tax liability. Fill in the information related to your foreign income, assets, accounts and shares, and other income and liabilities in the prescribed format in the ITR. Whether that income is taxable in India or not. 6. Do not hide tax-exempt income such as income from agriculture
The biggest mistake while filing income tax return is not declaring exempted income. For example, agricultural income is tax free. Profit share received from a partner firm is tax free. If you get income from this, then enter it in the prescribed column. This is necessary to present a complete picture of your financial transactions. 7. Be alert if you have changed more than one job in the financial year
If you have changed jobs, then 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 proper benefit of standard deduction. If you do not provide the 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 taking advantage of HRA
Under the old tax regime, salaried people 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 the rented premises is also necessary, as the department can verify your claim. 9. PAN card should not be inactive and should be linked to Aadhaar
The Income Tax Department can impose a fine of up to Rs 10,000 on those whose PAN card has been inactivated. If PAN and Aadhaar are not linked, 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 by post to the Centralized Processing Center (CPC).
