Avoid these mistakes when filing your income tax return
Individual taxpayers have a deadline of July 31 each year for filing ITR, while businesses and other entities have deadlines that vary depending on their category.
If their returns are filed after the due date, they face penalties ranging from Rs.1,000 to Rs.10,000.
ITRs are forms used to declare net tax liability, claim tax deductions, and report gross taxable income. Individuals and entities whose income exceeds the Income Tax Department’s exemption limit must file an ITR. When applying for loans, visas, or other financial transactions, it is also used as proof of income.
Firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals are all required by the Income Tax Department of India to file an ITR. Individual taxpayers have a deadline of July 31 each year, while businesses and other entities have different deadlines based on their category.
The following points should be kept in mind when filing income tax return forms:
- Determine the appropriate ITR form (from ITR-1 to ITR-7).
- Verify that the details in the pre-filled data, such as PAN, address, e-mail address, bank account information, and so on, are correct.
- Use AIS and Form 26AS to calculate the actual TDS/TCS/tax paid. If you notice a discrepancy, talk to your employer/tax deductor/bank about it.
- Gather and thoroughly examine the documents you will need to file your ITR, such as bank statements/passbooks, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, and so on.
- Include in the return all pertinent information such as total income, deductions (if any), interest (if any), taxes paid/collected (if any), and so on.
- Submit your ITR by the due date.
- The return of income can be filed once all of the details in it have been filled out and confirmed.
- After filing electronically, e-verify the return.
How Can I Check the Status of My Tax Return?
The status of the Income Tax Return can be found on the official website of the Income Tax Department of India. To check the status, you must enter your Permanent Account Number and password. Send a signed physical copy of the ITR-V Acknowledgement if you want to manually verify your return (by speed post).
Penalty for failing to file an ITR
Penalties apply if the returns are not filed by the due date. In addition to penalties, the individual may face additional inconveniences and consequences. If their returns are filed after the due date, they face penalties ranging from Rs.1,000 to Rs.10,000.
Documents needed to file an ITR
Form 26AS – Pan card – Forms 16A, 16B, and 16C
- Pay stubs – Bank statements
- Certificates of interest
- TDS certificate – Evidence of tax-saving investments.
