Things you must keep in mind while filing income tax returns this year
May, 16th 2019
Reporting all your income, linking Aadhar card with PAN card, and having required documents are some of the do's one should keep in mind while filing ITR
Tax filing may seem scary at first due to lack of adequate knowledge about required documents and the filing process, it actually is an easy and swift procedure if you know what you are doing. With all the hullaballoo around filing ITR, it’s easy to get confused, especially if you are a first-timer. Here is a simple list of do’s and don’ts you can follow for hassle-free ITR filing this season:
Know which tax slab you fall under
For example, you are required to file ITR if:
You are below 60 years of your age and your total annual gross income exceeds Rs. 2,50,000 You are a senior citizen i.e. 60 years, but below 80 years, and your total annual gross income exceeds Rs 3,00,000 You above 80 years and the total income exceeds Rs 5,00,000
Have all the required documents
Some important documents that you may require are Form 16, rental agreement, sale deed and purchase deed (on sale of assets), transaction statements for shares/mutual funds, housing loan certificate, tax paid proofs, bank statements, proofs for taxes deducted by employer, TDS certificates, Investment details like LIC, PPF, NSC, NPS, Health Insurance, AADHAAR Card, PAN Card, bankers, tenants, purchaser of property, proofs for deductions, foreign tax return among others.
Choose the right ITR
The Income Tax Department of India has made some changes in the various ITR forms this year and hence it is necessary to read up on these changes and understand which ITR form fits the bill for you.
Report all your income
As a responsible taxpayer, you should take care to disclose all taxable income along with relevant details since there are multiple consequences of failing to file the same accurately.
Link AADHAAR with PAN
The Government has passed several notices for the linking of AADHAAR card with PAN. You can do the necessary on an e-filing website and this information also needs to be mentioned in your ITR form.
Keeping TDS records
TDS deduction helps the Government in obtaining revenue throughout the year. Your employer deducts TDS on the basis of the information you furnish to them. To receive the benefits of this deduction, you should submit all the necessary details including investment proofs, rent receipts, etc. The Form 16 you receive from your employer each year entails details of all tax deducted by the employer and your taxable income after allowances and Section 80C deductions. A self-employed person with a tax liability of more than Rs 10,000 needs to pay Advance Tax to the Government every quarter.
Make mistakes while filing ITR
Incorrect information can cause a major delay in your return being processed. It is important to be careful while filling details such as PAN number, AADHAAR number, Bank account number, IFSC code, name as per bank records, postal address and email ID.
Forget to claim deduction
If you have made some investments in the financial year, then do not forget to mention it while filing your ITR. You can claim deduction up till a certain extent and lower your tax liability.
Avoid late filing
It is compulsory for every taxpayer to calculate their tax liability and pay advance tax/self-assessment tax before the end of the Financial Year. There is a penalty associated with late filing and hence you should not wait for the last minute.