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Points To Check Before You File Your Income Tax Returns
Many people seem to think that filing a tax return is optional or voluntary. Therefore, it is dismissed as an unnecessary and burdensome task. This is definitely not a healthy outlook on tax filing.
Filing tax returns is an annual activity. It is considered a moral and social duty of every responsible citizen of the nation. It is the base through which the government determines the amount and means of expenditure of its citizens. Tax filing provides a manifesto for the assessee to claim refund and other forms of relief from time to time.
Filing an income tax return is simple. However, few points need to be kept in mind before doing so. Therefore, consider the following points before you proceed further to claim your tax returns:
1. Selecting the correct ITR Form
There are 7 different Income Tax Returns forms. Choose the one depending on your income. Selecting the wrong form will result in the rejection of ITR filing by the income tax department.
2. Filling the details properly
Fill the details like PAN, Email ID, Contact Number, Bank Account Number, and IFSC accurately and correctly. If there is a mismatch in the data provided by you, the result will lead to the rejection of your ITR filing.
3. Mentioning all sources of income
You should mention both taxable and non-taxable sources of your income. If you do not mention all, you can get an Income Tax Notice in the act of ‘concealment of income’ from the income tax department.
4. Claiming deductions under appropriate sections
You would land up with more tax liabilities if you claim your deductions under the wrong sections. You would also have to pay higher tax if you fail to mention the investments made which enjoy tax benefits.
5. Checking Form 16 and Form 26AS for mismatches
Form 26AS gives the details of tax deductions by employer/bank, advance taxes paid and self-assessment taxes. A salaried employee should do a mandatory check on income and tax details in Form 16 with Form 26AS and make sure that there is no mismatch. Because in case of a mismatch, it could lead to paying higher taxes or getting a lesser refund, and in the worst case scenario, it could mean a tax notice.
6. Sharing your TDS deductions
If you change jobs in a single financial year and do not share your TDS details with the new employers, it could lead to the deductions more than once in a year. To avoid “more than once” deduction, share your TDS details with the new employer.
7. Calculating tax liability precisely
Once you identify the sources of income, compute your tax liability accurately. Wrong calculations can lead to the generation of a tax notice against you.
8. Claiming losses before due date
You can claim the incurred losses while filing your ITR, provided you do so before the due date. Once you miss the due date, the loss cannot be carried forward.
9. Informing about certain specified investments
You should mention certain specified investments while filing for IT Returns. For instance, depositing more than Rs. 10 Lakhs in cash, Mutual Fund investments for more than Rs. 2 Lakhs, Property bought or sold for more than Rs. 2 Lakhs.
10. Filing your IT Returns on time
Failing to file your Income Tax Returns on time will lead to penalty, according to the income of the salaried individuals. Therefore, ensure that you file your IT Returns on time, saving yourself from the penalty.
If you don’t have time to file your IT Return, you can hire a CA in Dehradun from RN Global to file your ITR on your behalf. A Taxation consultancy in Dehraduncan help you with your Income Tax Return Filing.
We are one of the best CA in Dehradun leading professionally managed chartered accountancy firms in the country, are committed to providing one-stop solutions for your Accounting, Taxation, Audit and Assurance needs.
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