1. 5 myths about filing income tax returns

5 myths about filing income tax returns

The last date for filing income tax returns is on Monday (i.e. 31st August, 2015). If you miss this deadline, there are some nasty consequences that you are likely to face.

By: | New Delhi | Updated: September 6, 2015 2:34 PM
Income tax returns filing

The Income Tax department will not allow revision of returns if there’s any misapprehension, you cannot carry forward losses, and you cannot claim refund.

The last date for filing income tax returns was on Monday (i.e. 31st August, 2015). The government on Wednesday extended the last date for filing Income Tax return by a week to September 7.

“Due date for filing Income Tax return extended till 7th Sep, 2015,” the Finance Ministry said in a tweet.

The Income Tax department will not allow revision of returns if there’s any misapprehension, you cannot carry forward losses, and you cannot claim refund.

So, in an effort to save you from committing flaws we are sharing the 5 most common myths surrounding this process of e-filing of tax returns, which otherwise is extremely simple in nature. If you are planning to do it on the last day, here’s a list of things to keep in mind:

Myth 1: People always have a misconception that they don’t need to pay tax for the interest income generated on fixed deposits as the bank already deducts the tax at source. This is a common myth with people earning interest income on fixed deposits. It is important to note that the taxpayer may be liable to pay tax on the same at a much higher tax rate.

Myth 2: Another common myth is that people generally think that the e-Filing process is complete once they have submitted the tax return online. Please keep in mind that the e-Filing process of a taxpayer isn’t complete unless a signed copy of the ITR-V acknowledgement has been sent to the CPC in Bangalore within 120 days from the date on which the taxpayer filed his/her income tax return.

To e-verify your income tax return one needs an aadhar card, in this case there is no need to send any form to CPC Bangalore.

Myth 3: Some people have a notion that they don’t need to divulge previous salary amount to current employer. This is a common problem as in this manner new employers will have no details about previous salary, making them deduct tax at source as if the employee has no other source of income. The employee must agnize that the tax must be paid on the total amount of salary received in the previous year.

Myth 4: It is a myth that the process of e-Filing one’s income tax return is not mandatory. Filing returns has been made obligatory for any taxpayer having a total income of INR 5,00,000 or more.

Myth 5: It is a common thought that by filing income tax return one will come under the scrutiny of the IT Dept. Once the process of e-filing the return is over, you receive an intimation u/s 143(1). This intimation is just a standard practice on the part of the CPC in Bangalore. A refund cannot be processed without the same.

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  1. P
    Pawan Dumbani
    Sep 1, 2015 at 12:09 pm
    You cannot claim refund is incorrect, you can claim refund even in belated return.
    Reply
    1. S
      s ramji
      Aug 31, 2015 at 7:01 pm
      The first para is more confusing that the MYTHS
      Reply
      1. S
        Sriharsh
        Sep 1, 2015 at 7:41 am
        Myth2 is not entirely correct. This year there are other online options available instead of the option of posting the signed ITR V copy.
        Reply
        1. V
          Varun
          Aug 31, 2015 at 6:40 pm
          Can you cite where it is written that income tax refund shall not be allowed in case of returns filed after 31 August 2015? It was my belief that refunds shall be processed for late returns (at least for those returns filed within 31/03/2016) but revised returns will no longer be allowed.
          Reply
          1. P
            PRIKSHIT WADHWA
            Aug 31, 2015 at 9:27 pm
            There is no provision in Income Tax Act that if we don't file return by due date, refund will not be allowed to us. If you think, there is such provision, please share the section number
            Reply
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