income tax Return filing has started. The Income Tax Department has fixed its last date as 31st July. Common employed people use ITR 1 form to file returns. It is quite easy to fill it. On the other hand, filling ITR-2, ITR-3 or ITR-4 is a relatively complex task. All the information about your salary and investment is pre-filled on the tax portal, so you can fill it easily without anyone’s help. But still the Tax Department has made many changes in the last few years. Due to ignorance of which the tax payer makes some mistakes while filing ITR. The consequences of which they have to bear after the last date passes. Let us know about those mistakes which can cost you dearly.
Match the report and Form 26AS
Income Tax Department issues Form 26AS to help its taxpayers. It contains information about a person’s income, Tax Deducted at Source (TDS), Advance Tax Paid, Self Assessment Tax Paid etc. Salaried people can match their income and investments with Form 16 given by the employer. Along with this, matching your information with Form 26AS also reduces the chances of mistakes.
Keep all investment papers handy to avail income tax exemption
Under the Income Tax Act, the government gives special exemption to tax paying people. But many times, even after investing or spending on these exempt items, taxpayers forget to mention them in the ITR. In such a situation, you are not able to take advantage of the discounts that you could have got. Apart from this, the government decides the tax liability according to different tax slabs.
Keep track of expenses in cash
You must give information about all types of transactions in your ITR. Especially it is even more important to give information about the transactions done in the bank, because the account of your every penny is already with the government. If you have made an FD of more than Rs 10 lakh using cash, then it is important for you to give the same information while filing ITR. Let us tell you that CBDT has recently asked for this information from banks.
Provide all bank details
Many times during the financial year you get refund due to TDS or other items. While filing returns, the Income Tax Department asks for your bank details. But many times people avoid giving bank information and sometimes fill wrong or incomplete details. In such a situation, the IT department faces difficulty in issuing the refund to your bank account. In such a situation, fill your bank account number, name and IFSC code correctly.
Give correct information about the property
The government has information about all your assets. In such a situation, do not make the mistake of hiding a large amount like property. You must report one or two or more of all your properties. According to the amendment in the Income Tax Act, 1961, now two properties can be claimed as self-occupied. Even if the property remains vacant for the whole year, it is still taxable.
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