You must be aware that the tax department recently warned salaried class individuals on wrong ITR disclosures either by inflating the deduction amount or through other measures such as producing fake rent slips so as to avail various allowed exemptions. Not only can you be penalized but also be given a jail term in case of serious fraud, at the same time the intermediary facilitating you will also not be saved from Income Tax wrath.So as a caution do take serious note of all such below listed common errors which generally are committed by taxpayers.
Also, for the return filing ITR 1 is now available on the e-filing website for you to get going with your ITR filing for the FY2017-18 for which the current deadline stands at July 31, 2018.
It is worth putting across any illegal practice adopted by you to reduce your tax liability shall be reported to your employer and it shall be asked to take an appropriate action against you. So for your ready reckoner do not go wrong at some of these otherwise material disclosures:
1. Do not resort to submitting false bills and rent receipts for claiming HRA benefits: Under-reporting as well as producing fake supporting documents to claim different allowed benefits are both an offence. Till now, taxpayers dealt with it casually and claimed without sufficient proof but now on as per the recent advisory issued proper course of action will be taken as per the different provision of the IT Act.
2. In case of being employed with multiple employers do not miss on any income from them: As all the information is already there with the taxmen due to TDS deduction by the employer, do not under-report any income earned from any of the employer in a FY.
3. Do not make false claims under Section 80C and also report complete interest earned details in respect of fixed or savings deposit account: Now the risk analysis system of the IT dept is day in and day out made more robust to report any fraud at the end of taxpayer, so do not extrapolate any investment which have not been made by you just to claim the tax benefit and reduce outgo. Also, all 80C investments of the person are mapped to his or her 26AS which is available with the department.
4. Do not make wrong disclosures as part of Chapter VI A of Income Tax: Chapter VI A allows for the various deductions like as in section 80C, education loan interest, 80G, 80D and other sections. As any over-reporting under these heads can now be very well traced by the taxmen with the linking of aadhaar, PAN and bank accounts.
Also, in the recent wake any suspicious or fraud shall now be assessed by the Centralised Communication Centre that can issue a notice to the concerned for producing relevant documents for verification and if found guilty by the AO based on the reporting you will be subject to prosecution by the department.
5. Do not make false claims in respect of LTA, medical reimbursements etc under Section 10: Till now while the salaried class has not yet refrained from making such claims, it is worth putting forth that now the department is cross checking all details by analyzing your reported income in Form 16, 16A, 26AS.
The move shall now on be strengthened this year with the more detailed disclosure requirement from the employees' part.
6. Also do not try to evade capital gains tax payment: As now for the FY 2017-18, AY 2018-19, you are required to disclose your investments that fall under the head separately any wrong claims can no longer be hidden by you as now all accounts are well linked and the dept shall verify all such claims electronically. And if you are found to err, you can be in for trouble by the dept.