Keep these 4 Dos and Don'ts in Mind while Filing your ITR

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 26AS

§  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:

§  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.

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.