Income Tax Return Filing Online: Do's and Dont's-what you must know
Income Tax Return Filing Online: Taxpayers need to declare their taxable income, deductions, and tax payments by filing their income tax return. A bit of knowledge can save you from all the trouble.
Taxpayers need to declare their taxable income, deductions, and tax payments by filing their income tax return. The process may seem scary to a few due to lack of knowledge but if you know what you are doing, it is swift, believes Heena Arora, Finance & Marketing Head of All India ITR. "Tax filing process seems scary at first due to lack of adequate knowledge about required documents but the filing process is easy and swift, if you know what you are doing," she told Zee Business Online. The taxpayers need not stress over income tax filing as the amount paid more than needed for the financial year, will be refunded to your account. Also, a bit of knowledge can save you from all the trouble.
What taxpayers must know?
Arora explains that the taxpayers should know which tax slab they fall under. She said that the taxpayers must have all the required documents, choose the right ITR, report all their income, lLink aadhaar card with PAN card and keep TDS records. They should also avoid filing.
By when should you file income tax returns?
Tapati Ghose, Partner, Deloitte India and Prashanth G, Deputy Manager, Deloitte Haskins and Sells LLP explained that all individuals whose gross total income (before deductions) exceeds Rs 2,50,000 and Rs 3,00,000 (for senior citizens) are mandatorily required to file tax returns on or before the due date, July 31 for the financial year 2018-19.
Income Tax Return filing: Do's
The duo explained that as a first step, determination of the correct income tax return form is critical. For instance, for the financial year 2018-19, ITR -1 can be used by individuals -
- who are Resident and Ordinarily Resident (ROR);
- whose total income does not exceed Rs 50 lakh;
- who have income from salary, one house property, other income (i.e. interest etc. not being winnings from lottery/ income from race horses or income subject to special rates or agricultural income in excess of Rs 5,000);
- with no brought forward/ carry forward losses or relief under section 90/91 of the Income tax Act;
- who are not Directors in a company;
- who have not invested in unlisted equity shares.
- who does not have any asset or signing authority in any account or income from any source outside India
"The exclusion for directors and investment in unlisted equity shares is newly introduced from FY 2018-19. It is advisable to collate all supporting documents to the returns as may be applicable. These could include Form 16, rental agreement, housing loan certificate, tax paid proofs (advance tax, self-assessment tax, municipal tax), sale deed and purchase deed (on sale of assets), transaction statements for shares/mutual funds, bank statements, proofs for taxes deducted at source (by employer, bankers, tenants, purchaser of property and others), proofs for deductions, foreign tax return, etc," they said.
Income Tax Return filing: Dont's
According to Heena Arora, the taxpayers should not -
- Forget which tax slab they fall under
- Forget to claim deduction
- file claims late
Things to keep in mind
Tapati and Prashanth said that taxpayers have to be more cautious in reporting all income that is taxable and disclosing details as required in the income tax return (ITR). They said given increased focus of tax authorities on the accuracy of tax returns being filed, the interest and penal consequences for failure to do so, the need for taking a cautious approach cannot be over emphasised.
"Reconciliation of Form 16, Form 26AS and other documents reflecting income earned / received, taxes paid is of utmost importance to avoid non-reporting of income or additional reporting of deductions/exemptions," they said.
"The Income Tax Department has already raised concerns regarding salaried taxpayers’ under-reporting income or inflating deductions, aided and abetted by unscrupulous intermediaries. Reporting the income and deductions in the tax returns as per the documents and proofs available will help in avoiding unnecessary notices from tax authorities," the duo added.