For earning individuals filing tax returns is a major concerb. Most don’t know what to expect and some simply think it is okay to miss out a few things. Especially, people who are filing the tax return for the first time, they have scope for making a lot of mistakes.
1) Verify Form 26AS
Once you know that you have to fill tax return this year, check your Form 26AS. This is just to ensure whether your taxes have been deposited to your PAN account or not. Form 16 will be given to you by your employer and it will display the tax deducted by the employer, and all the other taxes including TDS on incomes and interest will be seen in Form 26AS.
2) Include Interest
We have all heard that fixed deposits and other tax-saving schemes are completely free from tax. However, what we miss is that interest of this saved money is still taxable. These schemes offer tax saving under Section 80C, but the interest is still liable to tax.
3) Include Aadhaar
Although Aadhaar is facing a battle of requirements in certain cases, it is still essential to mention Aadhaar number on income tax return filing. Yes, this option is left optional but only for people who don’t have an Aadhaar card. Those who have Aadhaar card should fill in the details to avoid getting a notice for holding back information required in return filing.
4) Include the Previous Employer
If you have changed your job in one fiscal year, don’t forget to mention the income from the previous employer. Your new employer will most probably deduct taxes based on the fact that the remaining months in that fiscal year are the only earning months. You should mention both the employers. Though this will lead to a roll back in duplicate benefits, you can’t get away with it because if the previous employer has paid the taxes, it will be visible in 26AS. So, ultimately, this error will be caught.
5) Disclose Foreign Income and Assets
It is necessary to provide details related to every foreign income and asset. This will also include the accounts you hold, opening date, interest received, etc.
6) Disclose Every Asset
If your earning reaches to more than 50 Lakh per year, you need to disclose every asset and income source held by you. Taxpayers in this income bracket have to provide details of both financial and physical assets. Wherein properties are under immovable assets and cash, jewellery, stocks, bonds, shares, policies, etc. will come under movable assets. Here, your liabilities are loans acquired by you. With all this, it is also important to mention the cost value of these assets accurately.
7) File ITR before Deadline
If you have adhered to all the above necessary rules, you should not miss this one thing. File the ITR before the deadline on 31st July. Till a few years back there was no penalty of missing the deadline and people were given the freedom to file ITR of previous years without any issue. But, now, the rules are strict, and you should file return on time to avoid a fine of INR 5,000.
Once you are acquainted with all the rules, it is fairly simple to file the return. However, still, initially, people face issues such as ignoring some rules, leaving out some assets, not aware of some guidelines, or simply forgetting to file before deadline. To avoid this, you can take help from above tips or talk to a person who has been filing ITR for a while.