Income Tax Return: Many people willing to file ITR often find it too complicated and thus shy away from filing it. Some also have the misconception that filing tax returns is not mandatory as tax is compulsorily deducted from their salaries, which is wrong.
Income Tax Return 2019: Despite the income tax filing process having been simplified to a large extent by the Income Tax Department, many people are still scared of filing their IT returns all by themselves. Many also have the misconception that filing tax returns is not mandatory as tax is compulsorily deducted from their salaries. Not only that, people willing to file ITR often find it too complicated and thus shy away from filing it. Experts suggest people should understand the concept of filing ITR and file their taxes yearly.
When you file tax returns meticulously year after year, you create a financial record with the tax department. This record is sought after when you opt for a loan, be it a home loan, personal loan or a vehicle loan. It is also needed when applying for a visa. Additionally, large investments also require the proof of one’s financial record and income tax returns bear testimony to the same.
Here are some Do’s and Don’ts for hassle-free ITR filing this season:
- Know which tax slab you fall under. For instance, the tax slabs for different total annual gross income have different tax slabs. Find out under which tax slab do you fall in.
- Have all the required documents with you while filing ITR. Important documents include Form 16, AADHAAR Card, PAN Card, rental agreement, sale deed and purchase deed (on sale of assets), proofs for taxes deducted by employer, bank statements, transaction statements for shares/mutual funds, TDS certificates, Investment details like LIC, PPF, NSC, NPS, Health Insurance, housing loan certificate, tax paid proofs, purchaser of property, proofs for deductions, foreign tax return, among others.
- Choose the right ITR form as the Income Tax Department of India has made some changes in the various ITR forms this year.
- It is important to report and disclose all your taxable income along with relevant details.
- You need to have your AADHAAR linked with your PAN. Several notices have been passed by the Government for the linking of AADHAAR card with PAN.
- Keep your TDS records.
- Incorrect information can cause a major delay in your ITR being processed. Hence, don’t make mistakes while filing ITR. Especially while filling details such as name as per bank records, postal address, email ID, PAN number, AADHAAR number, Bank account number, and IFSC code.
- If you have made some investments in the financial year, make sure to mention it while filing your ITR. Do not forget to claim the deduction.
- You can lower your tax liability by claiming deduction up to a certain extent.
- As is compulsory for every taxpayer to calculate their tax liability and pay self-assessment tax/advance tax before the end of the Financial Year, avoid the late filing of your returns. There is a penalty charged with late filing and hence it is better not to wait for the last minute.