In this post, we will tell you 5 important things which one should be aware while filing an income tax return online to avoid any penalty or notices in the future due to mismatches or errors in tax filing.
First things first.
1) Keep your documents ready-
The below list covers most of them.
- PAN Card
- Aadhar card
- Bank statements of the year for which return is to be filed
- Form 26AS
- Form 16
- Form 16A/16B/16C
- Home loan statement from bank or NBFC
- Investment and deduction proofs for claiming the deduction.
Ok, so now we are ready with the documents. Nex up is
2) Choosing a correct ITR form-
Choosing a correct ITR form is important because if you (or your tax consultant) choose an incorrect form, your filed return will be incorrect & you will receive a notice from the Income Tax department u/s 139 (9) asking you to revise your return and file the correct form within 15 days, and failure to comply will lead to your Income-tax return being considered as invalid or “not filed” and other penalties may follow.
So what is an ITR form?
In layman’s term, it’s a form in which one needs to declare his income & tax details which is then referred by the income tax department to processed the returns.
Where will you get these forms?
On income tax website (www.incometaxindiaefiling.gov.in). Every year the income tax department releases ITR forms that specify eligibility criteria on the basis of source of income, residential status, etc. As the forms keep on changing every year, it may happen that taxpayers no longer have to choose the same ITR form which they filed last year because of their change in income or a change in provisions of law,etc.
Ok so now we have chosen the correct ITR form along with it we have all the documents ready. Next up,
3) Check your Form 26AS-
It’s of utmost importance to mention all your income correctly in the ITR form which you have chosen. At this point, it’s important that you refer to your Form 26 AS. So what is Form 26 AS? Again, avoiding the complex tax jargon, in layman’s term, form 26 AS is a detailed form mentioning your different source of income on which TDS is deducted, advance tax &self-assessment tax paid, etc by you for the year. If you happen to skip checking form 26 AS & file the ITR, there is a possibility of a mismatch between your filed return & form 26 AS which will lead to a notice u/s 139(1) & you will need to revise your return again.
One more important thing here is if you have form 16/16A/ 16B/ 16C, you should match the data of these forms with form 26AS data & if there is any mismatch you must inform your deductor to correct it at their end.
4) Check your all allowances & Investments-
Generally It is possible that you have not been able to submit tax saving investment proofs to the employer and hence the details were not recorded in your Form 16 and additional TDS is deducted on the ground of no investments. However, there is no need to worry because even if investment proofs were not submitted to the employer, tax relief can still be claimed while filing income tax returns. Also, in case you have some allowances in salary make sure the exemptions from those allowances are calculated properly.
5) Late filing of ITR
One should not wait for last-minute to file ITR as it results into unnecessary penalty & loss of some benefits, for example, one cannot carry forward the losses arises out of capital gains or business/profession and the same cannot be set off in subsequent years in case of late filing. To avoid late filing one must collect all the necessary forms & statements in advance.
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