Are you a salaried professional? If ‘yes’, then you need to file the Income Tax Returns without fail every year. Salaried individuals make silly mistakes in their IT return filing in many ways. This happens mostly due to carelessness or because of lack of time.
Millions of individuals in the country file IT Returns at the end of each financial year. This is applicable for salaried professionals and those having businesses in order to claim for deductions, if any, from furnishing other details related to income.
Despite undergoing the same process year after year, many salaried individuals end up making last-minute mistakes that literally hinder them from claiming any deductions. Therefore, it is very important not to make any mistakes during IT Return filings.
Here are some 10 check-lists one should ensure while filing income tax.
- Mandatory filing of IT Returns – Any salaried individuals whose income exceeds the basic exemption limit has to file IT Returns. Moreover, filing IT Returns helps individuals establish as an honest taxpayer. It helps you take loans from banks and other financial institutions in a hassle-free way. Failing to file IT Returns will not only receive an income tax notice but will also attract a huge penalty depending on the income bracket.
- File your IT Returns before the deadline – It is always advisable to file the IT Returns before the initial deadline to avoid a penalty. Though you may get opportunities to file it later at a cost of hefty fines. Also, you can avoid the last minute rush if you file your IT Returns before the due date.
- Select the correct IT Return Form – If you are filing your IT Return ensure that you select the correct form, else your entire IT Return filing will be rejected. Salaried individuals have to file the returns in Form ITR-1. However, in case you have any kind of capital gains apart from your salary, then you need to file the returns in Form ITR-2 as well.
- Furnish accurate details: Individuals filing IT Returns has to ensure that all the personal details like PAN number, Aadhar and contact number are correct. This is to avoid rejection or incomplete filing by the IT department. On most occasions, it has been noticed that ITR filings are rejected by the tax department due to the mismatch in personal details.
- Do not give incorrect or missing income source – Either due to a mistake or carelessness, never furnish wrong or misappropriated details while filing IT Returns as it could land you in serious trouble. One should declare the tax-free incomes from investment or any other sources along with the taxable amount.
- Avoid claiming deductions under incorrect sections – Income Tax Act has several sections. Each deduction claim has to be filed in a particular section. If you have filed for a deduction under an incorrect section, you may end up with a notice from the taxmen.
- Verify with Form 26AS – It is always advisable to cross-check with Form 26 AS if you are confused before filing IT Returns. This will give you a clear idea of all your tax credits and help you identify whether you are filling the details correctly. It is ideal to cross-check Form -16 with Form 26AS to avoid any last minute mistake.
- Do not hesitate to list your properties – In case if one owns multiple properties, one can claim for refund on only one of the property as per the IT rules. You will have to pay tax for other properties owned as they will be considered as rented out property. If the IT department comes to know about the undisclosed properties owned by you, it can lead to serious consequences.
- Restrict use of multiple deductions in TDS – When individuals change jobs, the tax deducted at source (TDS) may be deducted by the present and the past organization for the same financial year. To overcome this, it is advisable that one furnish all their past TDS details to the present organization. Moreover, furnishing all the details with the new employer can earn you a tax refund.
- Take professional support – It is best suggested to consult a tax expert while filing IT Returns. Since many complexities arise during IT filing, mistakes could lead to more liabilities. Hence to be on the safer side it is advisable to take the help of a tax expert.
Hope this blog must have given you a clear idea about IT Return Filing.
Call us for more details at +91-80 40909797