Income tax returns (ITR) filing tips: Be safe, do these 6 things right
Filing returns is mandated by law and is an important proof of your tax compliance. Let us look at the things you need to be mindful of when filing your ITR this tax season:
1. Keep documents ready: Before you file, keep all your documents handy. For quicker filing, keep all your old tax receipts, income and investment receipts, Form 26AS, Form 16, bank documents, etc, in order. Also, do keep them safe after you have filed the form online - they will be needed if an Assessing Officer (AO) asks for proofs. Photo: Reuters
2. Get your calculations right: Go over your tax documents carefully before doing your calculations. Then, make sure all your calculations are correct and recheck the numbers. You can even use an e-filing software to ensure accuracy. Wrong numbers would mean wrong taxes and that will cause trouble later on. Photo: PTI
3. Disclose all your income: Gains from mutual funds can be tax-exempt, and you might think it’s okay to not mention these. However, filing your ITR requires full disclosure of all income that you earn from various sources; irrespective of whether this income is taxable or exempt. Hiding information can cause legal heartaches so it’s better to be honest. Photo: PTI
4. Verify ITR after E-filing: After you have e-filed your income tax return, you will have to e-verify your ITR-V. This can be done via net banking, Aadhaar Card or through the Electronic Verification Code process on your mobile number and email. Do not skip this step, because the income tax department will start processing your returns only after receiving the verification. You can also sign and send a physical copy of the ITR-V to the Central Processing Centre (CPC), via ordinary or speed post only. This must be done within 120 days from the date of e-filing of tax return. Photo: PTI
5. Fill in your personal details correctly: You need to fill in your bank details (account number, IFSC code, name as per bank records etc), PAN number, postal address, and email id in the ITR form. Incorrect details can again lead to problems in the return being processed. You may also not receive important communications from the tax department like refund cheque, error notices etc. Photo: PTI
6. Claim Section 80 deductions: If you were unable to submit proof of investment to your employer, in order to claim tax deductions under 80C, you can still claim deductions while filing the ITR. Keep all proofs safely, should the AO ask for them later. Photo: Reuters
Source: DNA Money