[ad_1]
We entered in July and the deadline of July 31 to complete your tax returns is not very far. ITR filing involves the collection of a lot of information, and the process of putting it together is tedious and can lead to errors. Here we help you check your readiness by listing some common mistakes that people often make when filing ITR.
ITR Deposit
If your income qualifies for the ITR deposit, you must do so. "Failure to file a tax return may result in a penalty when there is a tax payable and in extreme cases tax authorities may even invoke provisions of the law subject to compliance with the conditions contained therein. ", says Kuldip Kumar. , partner and leader, personal tax, PwC India.
If your gross income is taxable, that is, above the maximum income for which no tax is collected, you must file your ITRs. The taxation of gross income is considered income before the application of various exemptions, which are permitted under the Income Tax Act. In the 2017-18 fiscal year, for people under 60, there is no tax to pay if the income is up to Rs 2,5 lakh. Also keep in mind that you must now file your returns electronically.
However, in some cases you can file a paper form. You can provide ITR 1 or ITR 4 in paper form, if your age is 80 years or older during the year of income or if your income during the previous year does not exceed Rs. 5ekh and you do not have the intention to claim a refund.
Do not file in time
If you forget to file your returns, there may be another opportunity to do so later, but it would cost
"If you miss the deadline filing, you can still file the return before the end of the year. Income for fiscal 2017-18 can be filed in March 31, 2019 if you miss the deadline, "says Kumar of PwC India. [19659004] You will have to pay a penalty of Rs. 5,000 if you file the return after July 31st but before December 31st, 2018. However, if you delay it, you will end up paying a penalty of Rs. 10,000. [19659002] Selection of an incorrect ITR form
The Income Tax Department has issued various ITR forms for different types of taxpayers. Even for individuals, there are 4 ITR forms for different repositories. A bad ITR form will complicate the process and delay processing. You must make sure that you fill out the correct ITR form, so before starting the process, make sure you identify the correct form. You can follow the instructions and check the conditions for obtaining a good form suited to your situation. However, if you do not feel confident then you can take the help of experts.
Choosing a Bad Year for Return
People often become confused about the year of filing their return. You must be clear about the year for which you complete the RTI. The easiest way is to consider the fiscal year of your income as the year before. The next year during which your income is badessed and your return must be filed is called the valuation year. In the current context, the year of evaluation is 2018-19 while the previous year is 2017-18
Give an incomplete or incorrect KYC
For a good treatment From your ITR and a quick refund, you must provide correct information about your name, address, bank account number, IFSC code, Aadhaar, PAN, and badet details.
"It is important to register the correct email ID and the correct mobile number on the account ..
" Electronic verification is an important step to produce a return. Apart from the EVC all the important details will be sent to the registered modes of communication, "says Architt Gupta, founder and CEO ClearTax.
Compared to previous practice, which required only the details of the bank account in which you wanted the refund, now you must provide the details of all your bank accounts by filing your ITRs.
Do not Disclose Income From All Sources
If you do not provide income from all sources, your ITRs are incomplete and may lead to a review "
" It is important to " review your interest income from various sources such as FDRs, recurring deposits, bonds and bank savings interests. It is a common mistake that people claim the deduction under section 80TTA for Rs. 10,000 / – of any form of interest income, while the deduction is specific to the interest earned on from savings bank account only, "says Taranpreet Singh, Partner, TASS Consultants.
To ensure you provide accurate information on all your income on what TDS was deducted, you must match all your actual financial transactions with Form 26AS and Form 16.
"With salary income, they must disclose the interest income on their investment and any other income they have.Since the non-disclosure of income will result in an additional penalty.They should equal the salary and the TDA figure with 26 ASes Form 16 before filing, "says Sameer Arora, Managing Partner, ATMS LLP.
Not mentioning the previous employer's income
forget to mention the income earned from the previous employer and can give the details of the current job only.
"During the production of the tax return, it is important to consider and report the employer's incomes. If applicable, it is observed that in some cases, employees generally forget to report their previous employer's salary on their income tax returns, which results in the subsequent receipt of income mismatches. Says Singh from TASS Advisory.
The government has been very strict on anti-money laundering measures and the disclosure of all foreign badets falls under this responsibility. your ITR.
"Do not forget to declare foreign badets, this includes all foreign bank accounts, whether they are operational or not." A taxpayer must also declare bank accounts where the beneficiary simply has a power of attorney. signature, "adds Singh.
Source link
