Things to keep in Mind Before Filing Income Tax Return

Things to keep in Mind Before Filing Income Tax Return

For any economic year, 31st July is the due date for filling income tax for everyone. No doubt, filling an income tax return is not at all the easiest tasks in India as the whole system is undergoing changes in the digitized era. In this transitional stage where economic reforms are being carried on looking at the national and international scenario, every responsible citizen has to be aware of some necessary areas which are pivotal to filling income tax return.

 

Linking Aadhar number to Income Tax:  The finance Act 2017 makes it mandatory for every citizen to quote Addhar while filling incoming tax returns.  Thus it has become necessary to link Aadhar with your Permanent Account Number (PAN). Users simply need to visit www.incometaxindiafiling.gov.in and have to click on link Aadhar tab.  The link will be verified after confirmation from UIDAI authorities.  For those who do not have Aadhar, have to apply for it immediately and quote the provisional number issued to them.

 

Identifying the basic sources of income:  This is a primary task where an individual needs to chalk down the avenues of earning. In no way, an individual should opt for hiding any earning or any fraud. Or else, the person can be penalized as per the provisions of income tax.  Let’s not forget that income doesn’t mean only salary but also other avenues like house property, business, capital gains and other sources.

 

Understanding the tax bracket and the exemptions offered:  This is another significant aspect which needs to be taken care of. One must clearly read the various tax brackets which are applicable to individuals. In this regard, exemptions are also necessary to understand.  No doubt, exemptions give much needed tax relief to professionals. As far as housing loans and other loans are concerned, those are to be taken care of while filling income tax.

 

Filling in correct personal details:  While filling the income tax return, it is important to give right input while filling up the form online. Any mistake while furnishing the necessary details or giving incorrect bank details may end up creating much hazard for the person in the long run. Any rectification no doubt in this segment is time taking.

 

Choosing the right ITR form:  The Central Board of Direct Taxes has brought some amendments in the ITR forms. At present, the whole process has become much simplified.  Instead of 9 ITR forms, there are 7 ITS forms.  As far as the changes are concerned, three of the earlier ITR forms—ITR-2, ITR-2A and ITR-3—have been rationalized. A single ITR-2 form has replaced them, making the whole segment much easier. Subsequently, ITR-4 and ITR-4S (Sugam) forms have been renumbered as ITR-3 and ITR-4 (Sugam). Interestingly, the new  ITR- 1 form is a one pager and any individual whose income is upto Rs 50 lakh a year can fill it. No doubt, this will invariably include salary income, interest income and income from one house property. Those who have income of more than Rs50 lakh or own more than one house property will have to file ITR-2 form. At present, the  only deductions specified are sections 80C, 80D, 80G and 80TTA  and the remaining are to be mentioned in the  ‘others’ box.

 

Claiming the deduction:  It is important to claim the deduction for which any individual is eligible for. It may be under Section 80C or Section 80G or housing deduction for interest on housing loan.

 

Maintaining documents for future: Once you file your income tax for a particular economic year, you job doesn’t end there. Rather, you have to keep the old documents safe so that, if there is any future inquiry or investigation regarding financial details, you can provide with the documents. Apart from that, if the deduction amount is incorrect, you will need to furnish the old documents for further application. Thus it is always advisable to keep a proper back up the documents.

Nevertheless, as a responsible citizen of the country, it is important to remember all the necessary details and file Income tax within the stipulated time. For any query, you can contact us @ 7668010101

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