It’s easy to miss out on a few details as you collect information from various sources such as your employer, your bank or other sources for Income tax return filing. There are some factors that you need to keep in check before you submit the report. Let’s have a look at some of these necessary things that you need to do before going ahead with the process.
Some Important Tips To Follow:
It’s a necessity that you know the right residential status as this is an important part that depends on multiple things like getting the correct ITR form, overseas income, and requirements for the report.
Getting the correct ITR form is important for income tax filing as even a single mistake in it can invalidate the income tax that you filed. There are multiple forms:
- ITR 1: Choose this form if you are a resident individual who has income or pension, has a property and some other sources for their income.
- ITR 2: This form is for the HUF (Hindu undivided families) & individuals who have an income of 50 Lakhs and above, have incomes coming from more than one property, acts as a director of a company, has a foreign source of income, etc.
- ITR 3: A form for HUF and individuals who have a business or are a partner in a business or firm.
- ITR 4: This is for the individuals & HUF who are a partner in a firm, who have an income of up to 50 lakhs.
The government has also provided information that is already filled for the individuals so that they don’t have any issues while they file their taxes. These details will help the taxpayer but even then they should focus on keeping the data correct in the form by referencing other documents that are available for them in tax credit statements also known as form 26AS, Salary Certificate(Form 16), Tax Withholding Certificate (Form 16A). Don’t forget to report things like provident fund interests, Saving, and other exempt incomes.
It’s necessary that you check all the details in your back account so that you don’t miss out on any refunds. And linking your aadhar card and pan card with the income tax portal is an absolute necessity.
You should download Form 26AS and go through it thoroughly & check whether any details are missing on not. The tax companies are extensively checking the forms for miscompliance and tax avoidance, since the introduction of additional disclosure requirements, so make sure there are no mistakes in these details.
Once you are done with filing the tax return successfully, you should very the tax return with net banking or Aadhaar OTP. If these options are not available then you can sign an acknowledgment and send it to CPC of the income tax department. This procedure should be done within 120 days of the income tax you filed.
IF there is any delay in filing an income tax return, the department has set a fine of Rs 5000, if the delay is up to December of that year. If it delays more than that, the dine you have to pay is Rs. 10000. If your income is less than 5 Lakh than the penalty about Rs 1000.
If you keep all these things in mind, then you will never have to face any penalties and then you’ll have a smooth tex filing experience every time.