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- Income Tax Return : While Filling The Income Tax Return, Keep These 9 Things In Mind, Including Choosing The Right Form, Otherwise You May Have To Worry Later
New DelhiOne hour ago
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The Income Tax Department has extended the deadline for filing Income Tax Return (ITR) for the financial year 2020-2021 till September 3. But experts believe that one should not wait for the last date to file returns. You should file the return as soon as possible. There are some important precautions you should take while filing ITR. Because if you make a mistake, you may have to face trouble.
Choose the correct ITR form
The Income Tax Department has prescribed several ITR forms. You have to choose your ITR form carefully based on your source of income, else the Income Tax Department will reject it and you will be asked to file a revised return u/s 139(5) of Income Tax. For example, those who have annual income from salary, property rent and other sources up to Rs 50 lakh can file ITR-1 Sahaj form. At the same time, those earning more than this have to fill ITR-2 form.
It is necessary to choose the right ITR form before filing income tax return, otherwise you may get notice from Income Tax Department
Provide correct income information
Always give accurate information about your income. If you intentionally or accidentally do not disclose all your sources of income, then you may get notice from the Income Tax Department. Information like interest on savings account and income from house rent is also to be given. Because these incomes also come under the tax net.
Choose the right option for you between the old and the new tax regime
Taxpayers get two options to file income tax return. The new option was given on April 1, 2020. In the new tax slab, the tax rates on income above Rs 5 lakh were kept low, but the deduction was taken away. On the other hand, if you choose the old tax slab, then you can take advantage of various tax deductions.
Non filling of bank account details
Many people do not give details of all their bank accounts with which they have done transactions in that financial year. To do so is wrong, as the Income Tax Department has clearly stated in its Act that taxpayers are required to provide information about all bank accounts registered in their names.
Download Form 26AS and tally your income with it
Form 26AS or Tax Credit Statement gives all the details of payment of TDS deducted on your income. Be sure to check this before claiming your tax refund. The taxpayer is asked to reconcile the income from Form 26AS and Form 16/16A before filing the income tax return. This will save you from any mistake in tax calculation so that you will be able to file a correct tax return.
Income tax return filers get bank loans easily, the number of ITR filers increased by 32% in the last 5 years
verify tax return
Many people think that after filing the tax return, their work is over, but after filing the tax return, you have to verify it too. You can e-verify your tax return from your income tax e-filing portal or you can also get it verified by sending it to CPC-Bangalore.
provide accurate personal information
Fill all your details correctly in the ITR form. Make sure that the information like spelling of your name, full address, email, contact number should be the same in your PAN, ITR and Aadhaar. Enter the mobile number on which SMS can be received. Providing incorrect information will make it difficult for you to get a refund. Giving wrong information can cost you dearly.
Give information about the gift received on festival or any other occasion
If you also get gifts on festivals or any other occasion then you need to be alert or else you may get notice from Income Tax Department. According to the rules of income tax, if you have received a gift worth more than 50 thousand rupees in a year, then you will have to pay tax on it. In such a situation, you have to keep this in mind while filing income tax return.
If you have a bank account abroad, then it is necessary to give information about it
If you have a bank account in any other country, then you also have to give this information while filing your income tax return. As per income tax rules, all tax payers in India have to furnish details of all foreign assets including bank accounts. If you are a resident of India and eligible to use ITR 1, you should not use ITR 1 in case you make any investments abroad. If you have investments in stocks or mutual funds abroad, be careful while filling the details.