Income tax returns (ITR) filing: 12 power points to ensure you never get a call from taxman
Income tax returns (ITR) filing is one of the biggest duties of a citizen that should be followed religiously every year. Having said that, the process can be confusing and cumbersome for many. Some simply get frustrated by the fact that it requires them to recall and keep track of what they spent their money on or saved.
It becomes a chore that can be unpleasant for some. Other people simply don't have the time to devote to this even as they have to focus on their daily jobs. To make sure that that is not the case, we provide you here the best tips possible to ensure you sail through the income tax returns (ITR) filing process smoothly and you successfully get filing acknowledgment from the Income-Tax department.
So read the general guidance on filling and submitting income tax returns forms:
1. The name filled in the income tax return (ITR) form should be as per the Permanent Account Number (PAN) card;
2. The taxpayer should ensure that e-mail address, phone number,and postal address are correctly stated in the tax return since the same is used by Income-tax Department for future correspondence with the taxpayer. Quoting of PIN code is mandatory;
3. Quote Adhaar
4. ITR-1 form can be filed in paper form only by:
a) An individual of the age of 80 years or more at any time during the financial year for which the return is being filed; or
b) An individual or HUF whose income does not exceed Rs 5 lakh and no refund is claimed in the return of income.
5. All other return forms have to be filed electronically;
6. Check Form 26AS for income and taxes reported by the deductor so that there is no mismatch with the income and credit of taxes claimed in the tax return vis-à-vis Form 26AS
7. Ensure that outstanding taxes are paid before filing the tax return and use correct challan to avoid mismatch;
8. Bank balance (including deposits) and cash in hand as on 31 March needs to be reported in 'Asset and Liability' schedule. While a common man may not know exact amount of cash held physically on 31 March 2017, it should be ensured that the amount declared in the tax return can be reasonably justified in case of scrutiny by the Income-tax Department
9. Information regarding deposit of specified notes exceeding INR 200,000 (old Rs. 500 and Rs. 1000 notes) during period 9 November 2016-31 December 2016) needs to be reported
10. Foreign Asset schedule requires reporting of assets held outside India at any time during the relevant year only by a taxpayer qualifying as Resident and Ordinarily Resident of India.
11. Taxpayers should ensure that the tax returns they file are verified, either manually or electronically, within 120 days of filing to avoid annulment of the tax return.In case the taxpayer wishes to manually verify the ITR-V form by sending a signed hard copy to CPC Bangalore, he should ensure that ITR-V is printed on A4 size paper and signed with blue ink only before sending to CPC Bangalore;
12. ITR-V can be e-verified by generating electronic verification code using Aadhaar, net banking, bank account number, demat account or registered e-mail address and mobile number etc. of the taxpayer
By Taranpreet Singh & Rohit Grover
(The authors are senior tax professionals with TASS Advisors LLP. The views expressed are personal).
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