As the due date for filing income tax return for the FY 2018-19 is approaching, i.e. 31 July, you must know the dos and don’ts to avoid errors at the last moment.
Following are the dos:
1. Keep the
documents handy: While filing your returns, you must keep these documents
handy for a speedy process:
§
Receipt of investments and income
§
Receipt of old tax
§
Form 16
§
PAN card
You must not only keep these documents handy but
safe as well because if you receive any scrutiny notice from the ITD, you may
need them.2. Check your computations: With the help of the tax calculator, check your tax liability before filing your return. To ensure that you computed your liability correctly, you can consult a tax expert. For those who have income that exceeds Rs 2.5 Lakh, it is mandatory to file an income tax return. It is recommended to e-file your taxes to reduce the chances of error.
3. Report all your income: Income from a few of the sources are taxable, and few are not. You must disclose all your income irrespective of whether it is taxable or not. If you fail to do so, you may end up facing legal issues.
4. Verify your ITR after filing: Once you have filed your return, you must
verify it through either online or offline process
a.
Online Process: You can verify your returnonline through the EVC process, which includes net banking, or through Aadhaar
card.
b.
Offline Process: You can verify your return, by
sending the attested ITR-V form to CPC, Bengaluru.
For both the
process, you must verify your return within 120 days of filing.
Following are
the don’ts:
1. Commit
any mistake: While filing the return, you will be asked to fill the
following details:
following details:
§
Bank details (Account number, IFSC code, name as
per bank records, etc.)
§
PAN number
§
Postal address,
§
e-Mail ID
If you provide these details incorrectly, it can lead to complications in processing your request. Also, you will not be able to receive any communication from the ITD like the scrutiny notice, refund cheque if you are eligible for the refund.
If you provide these details incorrectly, it can lead to complications in processing your request. Also, you will not be able to receive any communication from the ITD like the scrutiny notice, refund cheque if you are eligible for the refund.
2. Miss to claim
deductions under chapter VI: To reduce your tax liability, you can availdeduction under chapter VI. Even if you missed to submit the proof of
investment to your employer, you can still claim deduction while you are filing
your return. You must also keep these proofs safely with you, as in case of any
sort of scrutiny; the assessing officer may ask these proofs for verification.
3.Not reporting exempt: The incomes from PPF interest, gratuity, interest on securities, the amount received under Voluntary Retirement Service, etc. are tax exempted. You need not pay any tax on it. However, if your bank account reflects a high inflow of cash, it would be easier to explain if you already reported these incomes.
4.File ITR at the last minute: If you scramble to file your return online when the due date is almost there, you may end up committing mistakes. It may even happen that if you file late, a penalty in the form of late fee will be applicable to you or you may end up paying even more taxes.
3.Not reporting exempt: The incomes from PPF interest, gratuity, interest on securities, the amount received under Voluntary Retirement Service, etc. are tax exempted. You need not pay any tax on it. However, if your bank account reflects a high inflow of cash, it would be easier to explain if you already reported these incomes.
4.File ITR at the last minute: If you scramble to file your return online when the due date is almost there, you may end up committing mistakes. It may even happen that if you file late, a penalty in the form of late fee will be applicable to you or you may end up paying even more taxes.