on bank accounts
Section 80L has been omitted from the statute effective April 1, 2006 and, therefore, any interest earned from a bank deposit is taxable in the hands of the taxpayer. Hence, interest received on the balance in your savings account is taxable. Make sure you take it into consideration while filing returns to ensure avoidable correspondence with the tax authorities.
Submit ITR-V in time (online filing)
After having filed returns online without a digital signature, it is mandatory to submit the ITR-V form generated to the income tax officials within 30 days of filing the returns, else your return filing date will be postponed to date of submission of ITR-V rather than date of uploading the return. In effect, it means that unless the ITR-V has been submitted, uploading your returns online will be treated as equal to non-filing of returns.
Specify accurate bank details
Bank account number and MICR code provided should be accurate so as to receive refunds without any hassles. In case of an error, you will have to submit a cancelled cheque showing correct particulars.
File returns on time
This can prove to be costly for the taxpayer who has incurred losses and wants to carry it forward to the future years (short-term capital loss, house property and loss). Under tax laws, if returns are filed after the due date, losses cannot be carried forward for being set-off against the income in future years. Therefore, it is essential to file returns within the stipulated timeframe.
A two-year window
Income tax authorities maintain that returns can be furnished at any time before expiry of two years from the end of the financial year in which the income was earned. However, if you have tax outstanding and you do not pay your tax, then a simple interest of 1% per month will be charged on the amount that is outstanding.
Filing tax returns is a task we know is compulsory and has to be done on time, yet we tend to procrastinate and wait till the last moment. As a result, in a hurry you might tend to forget to disclose some items which may prove