The D-Day for filing income tax returns for AY2018-19 for certain categories of taxpayers has finally arrived. So, if you haven't filed your ITR yet, then hurry up.
The D-Day for filing income tax returns for AY2018-19 for certain categories of taxpayers has finally arrived. So, if you haven’t filed your tax return yet, then hurry up as you have only a few hours left to file your tax return today (ie. August 31). In case you fail to do so, you will have to pay a late filing fee, which can go up to a maximum of Rs 10,000, depending upon the case and the time of filing. You need to remember that this fee will now be levied even for a single day delay in filing your tax return, which was earlier not the case.
Moreover, you will also miss the chance to revise your return as a tax return filed after the due date isn’t eligible to be revised. Also, carry forward of losses (other than loss from house property) won’t be allowed if you choose to file the ITR after the due date. Therefore, it is in your own interest to file the income tax return today itself.
You, however, need to remember that just filing your tax return on time isn’t enough. You are also required to do it carefully and correctly as any mistake on your part may invite a notice from the Income Tax Department.
Keeping this in view, we are listing here 10 things which you must keep in mind while filing your tax return today:
1. Choose the correct ITR form: The Income Tax Department has issued 7 types of income tax return forms and selection of the ITR form for filling tax return depends upon type of income and status of the tax payer. “The disclosure requirements are different in all the forms and, therefore, it is important to choose the correct form while furnishing your income tax return, failing which your return can be treated as defective,” says Gopal Bohra, Partner, N.A Shah Associates LLP.
2. Claim investment-linked deductions not considered by employer: In an event you were not able to submit all the documentary evidences related to deductions u/s. 80C, 80CCD, 80D etc. to your employer, which has resulted into excess tax deduction, you still have the chance to claim benefits of such investments. The only thing you are required to do is to disclose the correct investment amounts in your income tax returns which will enable you to claim the refund of the excess tax deducted by the employer.
3. Reconcile your income with Form 26AS: It is important to reconcile all your revenues/ income with Form 26AS reflected on the income tax portal. “Where total amount received/ credits reflected in your Form 26AS does not reconcile with the total salary/ income declared, there is a likelihood of receiving a notice from the tax authorities to explain the mismatch. Hence it is very important to ensure that all credits as per Form 26AS have been considered,” says Taranpreet Singh, Partner, TASS Advisors.
4. Fill in correct particulars: Ensure that you have filled in your correct particulars in the income tax return form, including any change in correspondence address and email addresses. While filing an ITR form, you need to update any change in address, email, and phone number, among others. The tax authorities will use only this information while communicating/ sending any notice or information. Hence, this information should be up to date.
5. Recheck all mandatory particulars: Recheck that all mandatory particulars and fields are duly filled in the income tax return form. Where any mandatory field such as tenant particulars or bank details are not filled, the return XML file shall not be generated and the return cannot be uploaded.
Also See: Income Tax Refund: 5 must-do things to make sure you get excess tax paid back to your bank account
6. Recheck bank details: Recheck that you have mentioned details of all saving bank accounts held in your name. “As per the latest income tax return forms, you need to report and disclose details of all bank accounts held in your name. This information is to be provided irrespective whether you have a tax refund claim or not,” informs Singh.
7. Report Exempt Income: It is usually understood that reporting of exempt income is not necessary, but it is not true. The tax department expects taxpayers to disclose all income, whether taxable or exempt under specific provisions (for example, dividend exempt under section 10(38), etc.) while filling ITR in pre-specified schedules.
8. Claim deduction for donations given: Lots of employers, at the time of deducting TDS (tax deducted at source) on salary, do not provide tax deduction for donations given by their employees. However, there is no restriction in the Income Tax Act for claiming deduction at 50% or 100% of the donation amount, depending upon the approval granted to the institution to whom the donation is made.
“You should, however, note that deductions in respect of the donation amount exceeding Rs 2,000 will be available if the amount is paid through the banking channel. One will also be required to furnish in the ITR the Name, Address and PAN of the institution to whom the contribution is made,” says Bohra.
9. Pay tax before submitting tax return: Ensure that any tax payable pursuant to final tax computation is being paid before submitting the tax return. “This is the common mistake done by most of the tax payers. At times, we forget to pay any self-assessment tax due prior to the filing of tax return, resulting in error notices from the tax authorities. In order to mitigate any potential tax notice and interest liability, it is important to ensure that the tax challan is paid prior to submitting the tax return,” says Singh.
10. Verification of e-filed ITR: Most of the tax payers are required to file their income tax return electronically. However, only furnishing the return electronically is not enough and you are also required to verify the return so that your identity is authenticated. “You can either e-verify the return by Aadhaar OTP, linking your login with Demat A/c, Net Banking or sending the signed copy of ITR acknowledgment to CPC, Bangalore within 120 days of filing tax return. Failure to verify your return within the specified time can result in you being considered as a non-filer by the tax department,” says Bohra.