Pune; The last date to file Income Tax Return (ITR) for the financial year 2019-20 is 30 November 2020. The government has extended its deadline due to pandemic. There are many advantages in filing ITR, if you any mistake is committed, then benefits cannot me availed. So here are few things one should not do while filing the Income Tax.
Different Income tax return forms have been prescribed for types of taxpayers.
For example, ITR-1 is for those who earn up to 50 lakh rupees annually and their income comes from house property or other sources. ITR-3 form is for those earning through business and profession. ITR-4 is meant for freelancers etc. That is why it is important to choose the correct form while filing ITR.
Fill correct information
It is mandatory to give correct information about all the sources of your earnings while filing income tax return. This includes earning from your first employer, existing employer, investment etc. If information about any source is not given, then it will be clearly visible in the TDS certificate and Form 26AS. If necessary information is not provided, the Income Tax Department can send a tax notice.
Form 16 contains information about the tax deposited by the employer.
The taxpayer is required to provide information about the earnings after TDS or tax deduction. They have to give information about the interest earned on PPF, agricultural income and earnings from LIC maturity, etc.
Declaration of capital gains by selling assets
It is also necessary to provide information about the sale, purchase or expenditure on capital assets in the ITR file. Any investment made by the taxpayer has to be included in the form.
Information about the interest received on the investment
The taxpayer is also required to provide information about interest on fixed deposits, savings accounts, post office schemes, bonds and other investments. Interest on Savings Account is eligible for tax deduction. For people below 60 years, it should not be more than 10 thousand rupees. Talking about the interest received on FD, post office schemes, there is a tax rebate of up to 50 thousand rupees.
Disclose minor’s income
If taxpayers have made any investment in the name of minor children, then the interest paid on it will have to be shown as income. It is usually combined with the occupant who has more income. Taxpayers can claim tax exemption for two children earning up to Rs 1500-1500.
Form 26AS is a summary of TDS and tax payment.
There is information about income coming from salary, interest, sale of immovable property and many more. This Form 26AS and TDS details should be verified before filing a tax return. Taxpayer Form 26AS can be downloaded through income tax login. This income tax is available on the e-filing portal.
Provide information about all bank accounts
A taxpayer has to give information about all his bank accounts while filing income tax returns. However, inactive bank accounts are not included in this. Taxpayers can also choose the bank account in which they want to receive tax returns. Usually taxpayers assume that all the donations received by them are 100% tax free. However, this is not true. Some donations get a tax rebate of only 50 percent.
No filing of tax returns
Generally people believe that it is not compulsory to file income tax returns as their total income is outside the tax liability in the tax slab. If a person deposited Rs 1 crore in his bank account during a financial year or spent more than Rs 2 lakh on foreign travel or deposited more than Rs 1 lakh electricity bill in any one year, then he must file income tax Returns.