Return of income is a way through which the government gets to know your mode of income, your profits and losses, tax applicable and thereby providing a platform for you to claim a refund (if any) and other forms of relief. All of us have to report our income and capitals and details of our allowances and relief claimed, for any particular tax year. This article highlights some basic ground rules and a set of dos and don’ts when filing income tax in India. Keep reading.
A lot of people think that filing tax returns is not necessary and dismiss it as burdensome. However, contrary to this popular myth, it turns into a burden only when you don’t file your returns. Here let’s discuss a few check points which you should be and should not be doing while filing your tax returns.
1. Stay Prepared: The details that you need to fill out while filing your returns are quite a lot and can be quite confusing. Keep it ready before the filing season begins. Keep all pay slips, tax receipts, TDS certificates, loan documents, records and all other relevant things handy.
2. Choose the appropriate IT Return form: There are different Income Tax Return forms available for various sources of revenue. Choosing the correct form is a major confusion among tax payers. The forms vary depending on your income, whether it is from salary and pension or business or house property. Do your homework and pick up the right form for filing.
3. Verification of Form 26AS and ITR: Verification at all stages is crucial for successful Income Tax Filing. All tax related information comes in Form 26AS. Thoroughly check your form so that you are on the right path. After filing your returns, you need to verify your ITR because the processing starts only after the IT department receives ITR – V form.
4. Don’t make mistakes in giving details: Returns filing is all about bank details, TAN number, your contact details, etc. Refrain from making mistakes when you are providing all these details. Re-check all the information once you are done and make sure that all the minute details are submitted accurately.
5. Don’t ignore income from your ex-employer: When you change the job, your new employer does not consider the income from your previous job. Tax is accordingly deducted. Don’t make this mistake, since it comes into picture once you file your tax return. It gets tedious at this stage when the incomes from both the employers are added, and deductions and exemptions are halved. Avoid this at all cost.
Keeping these things in mind and being organised is half the job done. Follow step-wise instructions on e-filing. Never postpone your return filing and also don’t hurry up with the process. Both are undesirable. Sit back, relax and then file your returns. Filing tax returns is an annual activity and should be taken as a moral and social responsibility of every citizen of the country.