We are almost approaching the mid of January and soon after this, it will be the time to file tax returns. Usually, people like to avoid this, but it is very important to file our taxes carefully and on time. Below are a few pointers that you should keep in mind to make this process smooth and hassle-free.
1) Pick up the right form: Make sure that you pick the right return form, which is prescribed by the Central Board of India every year. This form issued by CBDT is categorized by various streams of income and getting the correct form will assure that the full details are filed.
2) Check your bank account statements thoroughly: It is very important to check your bank account statements carefully as it will give you an idea about the various streams of income you need to disclose in your return. It will clarify that which form you need to use and will also spare you the error of not including a particular income.
3) Include all your tax-saving investments: It is one of the essential part of the process as the tax-saving investments can reduce a decrease in the considerable part of your income. Note down all your investment, particularly the tax-saving ones and include them along with its details correctly.
4) Double-check your Permanent Account Number (PAN): it is the important identification number with which help the tax authorities identify you and record the income. In case you quote a wrong PAN, it will cause difficulties for you and for the tax officials. Therefore, ensure that you check your PAN before giving out the details.
5) Correct Address and Bank account number: Be careful while filling the details related to address and bank account along with MICR code in your return form. It will also help in timely correspondence with the Income Tax authorities.
6) Overseas income: If you have invested in the overseas market or got some income from outside India, you should also include this in the return form.
7) Stay updated with the current tax law: Assure that you know the present tax rule and guidelines before preparing for the return. The exemptions and deductions according to the current law ensure that the income disclosed in return is complete.