Income Tax Statement: Common Mistakes to Avoid When Filing ITR-1

The compliance form is simple for those who earn income solely from sources such as salary, home ownership and other income. These taxpayers are required to file their income tax returns in ITR 1.

The Income Tax Department issues each year different tax returns (ITRs) for different categories of taxpayers based on their source of income . The compliance form is simple for those who earn income solely from sources such as salary, home ownership and other income. These taxpayers are required to file their tax return in ITR-1. However, if earned income includes capital gains in addition to the income specified above, taxpayers will be required to file ITR-2, which is more detailed and requires more disclosure.

Maturity: July 31
The deadline for filing the 2017-2018 tax return is July 31, 2018. The deadline is becoming more critical this year since the filing of the tax return beyond this date would entail the perception of a maximum penalty of Rs 10,000. Each year, the employer asks its employees to provide the details of their investments that are taken into consideration to withhold income tax on salary. Many times, employees fail to provide these details which results in an excessive deduction of tax on their salary.

Tax Withholding
Tax withholding is only part of the mechanism for the payment of income tax to the government. The withholding tax does not mean the final payment of the tax due for the year. The total tax payable for the year may differ from withholding tax. Thus, the taxpayer must determine his total tax liability taking into account the taxes withheld and make the balance tax payment as a self-badessment tax, if any, before producing his income tax return. This would also result in an interest charge if the taxpayer had not made the advance tax payment.

The ITRs specify five categories of income under which all income may be reported during the filing of the return. Such a category is "income from other sources". It is a residual category that includes all types of income that can not be clbadified into the four specific income categories (wage income, business / professional income, capital gains and property income). real estate). Pbadive income such as interest and dividends must be reported under this category in the RTI form

Enter all your interest income
All interests of the savings banks must be reported fairly in the RTI since the tax department requires disclosure of all income. the taxpayer. In addition, declare the subjection of fixed interest income. A person may be subject to total income tax in excess of the rate at which the tax was withheld by the bank while making the payment of interest on FD.

Avoiding Errors
The taxpayer should avoid common defects or omissions. Personal data must be properly completed. the return should be checked; the correct ITR form should be used; capital gains must be reported to avoid any investigation by the IT department, even if the taxpayer is not subject to tax because of the fact that investments have been made to save tax on the capital gain. [19459089] ] Nangia Advisors LLP
(With contributions from Radhika Arora)