Filling Income Tax Returns: 10 simple steps
The deadline for filing an income tax return is approaching, as it the Tax season, so here are some tips to avoid a hassle-free tax filing process.
File your returns:
If the total income of any individual exceeds the exemption limit, he/she is liable to pay tax. Whether the tax has been deducted at the source or not. Filing returns will help in the documentation process and can be used at the time of taking a loan, insurance, or for applying for a visa.
Pick the correct form:
Depending on the various streams of income there are eight forms available, so you have to choose accordingly what suits you the best depending on the source of your income.
Disclose exempt income:
Some forms of income such as mutual funds, the long-term capital gain on securities are exempted from filing returns, but you need to give information regarding such incomes.
Annual information return:
If you have made any significant investment this year, you need to give information regarding the same.
Avoid omission of interest rate received on the bank account:
Make sure you take care of the interest earned from the bank deposit as the interest received on the bank account is totally taxable.
Submit ITR-V in time:
If you have filled ITR without a digital signature, it is important to submit the ITR-V form generated by income tax officials within 3o days of filing the return.
Specify accurate bank details:
Do check the bank account number and MICR code twice before submitting your form. In the case of any fault, your form will be canceled.
File returns on time:
If you do not pay your returns on time this may cause a big problem for you as under tax laws if returns are filed due dates, you may be imposed fines and you may income some losses out of it.
A two-year window:
Income tax filing is an immediate task to be done, don’t wait for the last date as at that time in a hurry you may do minor mistakes that will affect some major mistakes. Income tax authorities maintain that returns can be filed any time before the expiry of two years at the end of the financial year.