The last date to file an income tax return is 31st July. In this blog, we will discuss the various checkpoints one must remember while filing Income tax returns.
Points to keep in mind file filing ITR
4 important points that one must keep in mind while filing an income tax return are:
Always Disclose All Incomes
The department records all the incomes of an individual in certain documents. These documents include Form 16, Form 26AS, AIS and many more. These consolidated statements are issued either by the deductor or the income tax department. These documents show the income received by the individual and the TDS deducted from it. These documents are linked to the PAN of the taxpayer. Therefore, all the transactions such as income and expenses incurred are recorded and stored with the income tax department.
Some people try to evade taxes by hiding their income sources while filing the ITR. But such measures may invite notices from the income tax department. Therefore, you should always ensure that you have declared all income in your tax returns. You can avoid penalties in this way.
Claim Your TDS Credits
TDS is the portion of income kept with the payer before the recipient receives it. For example, in salary, the employer deducts the TDS from gross income before crediting the amount to the employer. Hence it is important to carefully examine the documents (Form 16) issued by the deductor. One should ensure that the income tax return reflects all the TDS transactions. Therefore, one should always claim all the TDS credits. Failure in the above will lead to an increase in tax liability.
Take Benefit of All Eligible Deductions
The Income Tax Act of 1961 provides various deductions to reduce the tax liability of taxpayers. Such deductions reduce the tax burden and help the government increase public investments in certain areas. One should always take benefit of such deductions as they play a major role in reducing one’s tax burden. Some of the famous sections are:
- Section 80C
- Section 80D
- Section 80DDB
- Section 80G
- Section 80TTA
E-Verifying your Return
E-Verifying is one of the most important steps while filing an income tax return. After filing the return, it is mandatory to e-verify your return within 30 days of filing. The e-return will be considered invalid if it is not verified within the specified time limit. In addition, late fees ranging from Rs 1000 – Rs 5000 may be applicable as per section 234F of the Income Tax Act 1961. You can e-verify your income tax return by:
- Entering OTP received at your Adhaar-linked mobile number
- Generating an Electronic verification code through net banking, bank account or Demat account
It is the responsibility of every earning Indian citizen to pay taxes and file ITR within the due date. The taxpayers must declare all their incomes while filing the income tax return. They should also ensure to claim all the TDS credits and applicable deductions. This will reduce their tax liability to some extent. Following all the above-mentioned steps will help in avoiding notices and penalties. Contact our tax professionals at FileMyReturn to ensure compliance and maximise tax savings.