10 precautions for filing your personal tax return
PrintListen to this Article
10 precautions for filing your personal tax return
Taxing Issues
The due date for filing personal tax returns for the financial year 2012-13 is July 31. Taxpayers need to be aware of various points while filing their returns. Filing incorrect details may result in interest, penalty or delay in refunds. These points can help you file your return correctly.
Choose the correct form: Different forms available for tax filing are ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4S (Sugam) or ITR-4. The form selection is dependent on your source of income. For example, if you have rental income from two houses or capital gains, ITR-2 would be applicable. However, if you have only salary income and certain other incomes, then ITR-1 is applicable.
Claim all your deductions: Some investments and donations are eligible for deduction from the total income. If you were unable to claim the deduction from your employer, you can claim the deductions in your tax return, subject to certain conditions. Make sure that you have claimed the deductions under the appropriate head in the return.
Claim all your past and current losses: As per the Income-tax Act, 1961, certain losses can be carried forward and set off from next year’s income. You should take stock of such losses, which can be very helpful in reducing your tax liability.
Mention the exempt incomes: Incomes like interest on NRE bank accounts, dividend, agricultural income, exempt income of minor child, etc, are classified as exempt income. Although you don’t have to pay tax on such income, tax returns have a specific schedule to report such income.
Pay the balance tax liability: If there is any balance tax liability after considering TDS / advance tax paid, then the balance tax liability along with any interest should be deposited as self assessment tax before filing the tax return.
Verify your Form 26AS: You can log on to www.income taxindia.gov.in or towww.tin.nsdl. com and download the Form 26AS. This form has all details of tax deducted and deposited against your PAN. This means that TDS, advance tax and self-assessment tax will all be reflected in this form.
Mention the correct personal details: You need to mention your name, father’s name, PAN, address, date of birth, residential status, etc. You also need to provide the correct bank account number and the IFSC code so that refund, if any, can be credited to your bank account.
Report assets and liabilities under certain cases: A new ‘Schedule AL’ has been added to ITR 3 and ITR 4, which are used by taxpayers having partnership or business income. As per the new schedule, if the taxpayer’s total income exceeds Rs 25 lakh, he will be required to report details of his assets along with liability against such assets. Collect all these details so that it can be mentioned in the tax return.
Check the filing procedure: Check the filing mode applicable to you – is it online or physical filing? It is mandatory to file your tax returns online if your taxable income is above Rs 5 lakh. Taxpayers earning income up to Rs 5 lakh need not file returns, subject to certain conditions.
Submission of ITR V: Upon online filing of tax return online, the tax return acknowledgement (ITR V) is required to be signed and sent to the Central Processing Centre (CPC), Bengaluru. It should be ensured that the signed ITR V is signed in blue ink only and submitted with CPC within 120 days of filing of tax return online.
Category : Income Tax | Comments : 0 | Hits : 1147
Income Tax Alert - Here Are 5 High-Value Transactions That May Come Under Scrutiny. Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny. Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of f...
Delhi Court Sentences Woman to 6 months Jail for not filing the return of income (ITR) discussed. Accordingly, the accused is held guilty of not filing the return of income for the assessment year 2014-15 under Section 276CC of The Act. Accordingly, the accused is convicted for an offence punishable under Section 276CC of the Act," the court said in the judgement. "The convict is awarded a sentence of simple imprisonment for six months with a fine of Rs 5,000 and in default to unde...
Corporates, Non-corporates or government department all are procuring major part of services or goods from the MSMEs. There are provision under the Micro, Small, and Medium Enterprises Development (MSMED) Act, to ensure that businesses make payments to MSMEs within a specified time frame, and failure to which can impact the deduction claims for such payments. To facilitate timely payments to micro, small, and medium enterprises (MSMEs) and address the challenges faced by these businesses in rec...
In the Income tax act, the words “Turnover”, “Gross receipts” and Sales are used at many places. In the common business parlance, the terms sales and turnover are used interchangeably. However, as per Income Tax law, guidelines are available on the question of what constitutes turnover. Understanding the concepts of these words is necessary for the purpose of the tax audit. An audit is mandatory for corporate assessees, irrespective of the amount of turnover. In ...
Very Important Income Tax Update regarding Micro and Small Enterprises Section 43B-any amount remains unpaid on year end to creditors, being micro/small entity, beyond 45 days or less, as agreed or 15 days if no agmt, shall be added to taxable Income resulting in huge additional tax liability. Keeping such creditors unpaid is risky. If payment for purchases made from *Micro and Small units* remains outstanding on 31st March, there may be huge tax liability. Therefore...
Comments