About Income Tax Return
The financial year has ended, and every individual is worried about filing his tax return before the due date. You should check that the return you are filing is correct or not, to avoid future hassles of assessments.
As we are again at the tax filing time of the year, some caution points would ensure an error free Income Tax Return:
1) Correct Form of Return
The first step is to pick up the correct return form, which is prescribed by the Central Board of Taxes (CBDT) every year. The Income Tax Return (ITR) forms by CBDT depends on the various streams of income. Correct form ensures that the complete details are filed.
2) Correct address and correct bank account number
For timely correspondence with the income tax authorities as also for timely delivery of refunds claimed in return, it is very important to mention the correct address and bank account details along with the MICR code in the return form.
3) Permanent Account Number (PAN)
PAN is very important identification proof by which the income tax authorities identify a particular taxpayer and record his income and tax deducted on account of his income. Giving incorrect information regarding the PAN may bring you in difficulty. So make sure you have given the correct details.
4) Staying updated with the current tax law
The most important thing is that you should be updated and has a correct information regarding the current amendments in the law. This ensures that the income disclosed in return is complete, and the benefit available under the law is considered.
5) Checking your Bank account statements
One should double check the correct Bank account statements. By this, you can get the correct idea of the various sources of income. This clarifies the type of return forms you will be filling depending upon the income.
6) Overseas income
Nowadays, few of us have started investing in the overseas markets or receive some income abroad. The same should be included in return as well. Moreover, one should not forget applicable treaty benefits available under the law to avoid double taxation.
7) Deduction under Chapter VI
We all make tax saving investments throughout the year but sometimes even forget to include the same in return. To avoid this one should maintain the list of the tax saving investments made.
8) Carried Forward losses
One may always check the losses that have occurred in the past years. We should always check whether the losses are forwarded to the current assessment year and is considered as it may depreciate the income charges to tax and in return the tax liability.
9) Details of Tax Deducted at Source (TDS) and income included in the return
In case of tax deducted at source (TDS), ensure that the details like Tax Deduction Account Number (TAN) along with other details of the payer of income are as per the TDS certificate to avoid disallowances from AO in future. Further, one should even check the tax credit available, and the correctness of income included in return by viewing the Form 26AS to avoid any error.
10) On-line return submission
On-line filing of tax requires the digital signature, but if you are filling the tax without the signature, it is necessary to submit ITR-V form generated on-line, to the income tax officials at Banglore.
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