When filing income tax returns, we all tend to make certain mistakes. While some of the mistakes are caused due to lack of information or knowledge, others are due to our carelessness. With the last date of filing income tax returns approaching fast i.e 31 July 2018, here we look at certain points that need to be kept in mind while filing income tax returns this year.
- One needs to mandatorily declare all bank accounts while filing income tax returns. The details of all the savings and current accounts that were held at any time during the previous year need to be provided. While most of us think that we need not mention the income that is tax exempt while filing income tax returns, it is not true. All income that we earn from various sources needs to be mentioned.
- For quick filing of income tax returns, documents like receipt of income and investments, old tax receipts, Form 26AS, Form 16, bank documents need to be kept handy. The documents are not only needed to while filing the form online but also needs to be provided as proofs to the Assessing Officer (AO).
- While there was no late fee for filing Income tax Returns (ITR) after the due date until last year, this year onwards Rs.5,000 would be charged if the return is filed after 31 July 2018 but before 31 December 2018. The late fee would double to Rs.10,000 if the return is filed after 31 December 2018. The change has been brought about under Section 234F. The late fee would be Rs.1,000 for people whose total income is less than Rs.5 lakh.
- The 12-digit Aadhaar number needs to be mentioned in the Income Tax returns even though the deadline for linking of PAN and Aadhaar has been extended. For those who are yet to avail the Aadhaar number, they need to provide their 28 digits Aadhaar Enrolment ID while filing the IT returns.
- Applicants need to e-verify ITR-V using net banking, Aadhaar card or through Electronic Verification Code (EVR) process after the income tax return is filed. Doing this is necessary because only after doing it can the Income Tax department start processing the returns.
- Starting this year, individuals would also need to provide the GST identification number (GSTIN) along with the turnover while filing ITR-3. This has been done to ensure that people provide the correct details and make sure that they cannot evade taxes.
- Details such as account number, IFSC code, name as per bank records, PAN Card, address, and email ID needs to be provided correctly in the ITR form. This needs to be ensured because it helps in receiving important communications from the income tax department with the regard to the ITR filing.
- Deductions offered under Section 80 must be availed. This ensures in reducing the tax liability. To claim the deductions while filing ITR, all proofs need to be kept safely with the applicant as they would need to submit the proof to the AO later.
- While filing income tax returns, the individual is required to provide a detailed break-up of the salary as per the new income tax return forms. This needs to be in line as of Form 16 issued by the employer.
