Every year you know when your birthday, anniversary, Christmas, Independence Day etc. comes. Similarly, every year by July 31st you must file your income tax return.
However, this year there have been changes made for filing and also failure to file your return carries a penalty. So, as you prepare to file your tax return keep the following important details in mind.
Don’t Forget to Claim 80G Deductions
While, many of us are aware of 80C deductions, 80D, 80DD etc., there are other equally beneficial deductions available that you probably were not aware of, that you are eligible to use, such as 80G.
As per this section 80G, you can claim deductions for any donations made for the year. Ensure to maintain receipts and report them on your tax return to claim the benefits.
Select the Right ITR Form
Depending on the income source, the ITR form used to file your tax return will vary. While, salaried individuals will primarily use ITR 1 and ITR 2, if you have income from other sources, the other forms may also be applicable to you.
So, ensure you file all the relevant forms applicable to you.
ITR Form Changes
To ensure more taxpayers file their tax returns annually, the Income Tax Department (ITD), to increase compliance has made changes to ITR forms, which require more details from each individual. For example, ITR 4S is now ITR 4.
To avoid unnecessary complications with all the changes to filing this year, avail the aid of tax filing service providers, such as H&R Block India to lessen the burden on your shoulders.
Aadhaar and PAN
As per law, it is now mandatory to mention your Aadhaar on your ITR. Additionally, you need to ensure your Aadhaar and PAN is linked.
If you do not have an Aadhaar yet, you can apply for it and mention the enrollment number, in place of your Aadhaar number.
Verify Form 26AS
Form 26AS is as important as your Form 16, as it contains details of all TCS and TDS deposited with the government and your other income sources such as interest from FD, for example.
Ensure that you verify all the tax deducted on your behalf from all your sources of income, as any mismatches can result in a notice being issued by the ITD.
Report All Your Incomes
A reason that many find themselves being issued a notice from the ITD is, for non-reporting of all sources of income. A mistake which can easily happen, if you only report the incomes mentioned on your Form 26AS.
So, to avoid any unnecessary complications ensure you report all your other incomes, in your ITR form, including exempt income, interest incomes from various sources, agricultural income if any and also long-term capital gains.
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TDS and Taxes Paid
It can happen that your Form 26AS, may contain errors, as the Deductor could have made mistakes. Additionally, not all your sources of income are subject to taxes.
So, verify all the details of TDS deposited and taxes paid by you and correct any mistakes with relevant proofs, to claim refunds, especially in cases of self-assessment or advance tax payments.
Provide the Correct Details
Ensure upon completing filling out your ITR forms that all the details and calculations entered are correct. Correct any mistakes in information in personal details, such as PAN, mobile number. Additionally, ensure that the calculations you made are correct.
The last thing you need is a delay in the processing of your return or refund due to simple errors. Moreover, you can avoid notices from the ITD due to a mismatch in information.
Choose e-verification Method
After filing your return, you must verify your return. Instead of opting for physically sending your ITR V to CPC Bengaluru, you can e-verify your return through methods such as net banking or Aadhaar number.
This means you can easily complete the entire process in one go without any extra effort. One of the benefits of filing and verifying your tax return online.
File by July 31st
The government has now imposed a late fee of Rs 5,000 for any returns filed after July 31st. So, to avoid any needless expense, ensure to e-file income tax return by July 31st this year. The quickest and easiest way to file your return is opting for e-filing your return.
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Anyone must remember about all the sections of Income Tax and submit the IT returns as per the deduction list for your payments and incomes to avoid penalty.