The financial year has ended and every individual is worried about
filing his tax return before the due date. The difficulty is to be sure
that the return you are filing is correct or not to avoid future hassles
of assessments.
As we are again at the tax filing time of the year, some caution points would ensure an error free tax return filing:
1) Correct Form of Return
The first step is to pick up the correct return form, which is prescribed by the Central Board of Taxes (CBDT) every year. The Income Tax Return (ITR) forms by CBDT depends on the various streams of income. Correct form ensures that the complete details are filed.
2) Correct address and correct bank account number
For timely correspondence with the Income Tax authorities as also for timely delivery of refunds claimed in the return, it is very important to mention the correct address and bank account details along with the MICR code in the return form.
3) Permanent Account Number (PAN)
PAN is an important identification number by way of which the income tax authorities identify a particular taxpayer and records his income, taxes deducted on his behalf and the taxes paid by him. Quoting of incorrect PAN may cause hardship to both taxpayers as well as to income tax authorities. So double check your PAN.
4) Staying updated with the current tax law
Before you start preparing your return, you should stay updated with the current tax law. The deductions and exemptions available as per the law or the provisions of clubbing of income. This ensures that the income disclosed in the return is complete and the benefit available under the law is considered. Eg. Deduction of INR 10,000 for saving account interest or no deduction available in this assessment year for investment in infrastructure bonds.
5) Checking your Bank account statements
One should always review the bank account statements. By doing this you always get an idea of the various streams of income which you need to disclose in your return. This clarifies the type of return forms you need to use for filing your return.
Further the error of not including a particular income is avoided, e.g. we all earn interest income on our savings bank accounts and at times due to the insignificant amount; we forget to include the interest income in our return of income. A common slip up that happens is non-disclosure of income exempted from tax, such as dividend income from mutual funds or capital gain on securities.
6) Overseas income
Nowadays, few of us have started investing in the overseas markets or receive some income abroad. The same should be included in the return as well. Moreover, one should not forget applicable treaty benefits available under the law to avoid double taxation.
7) Deduction under Chapter VI
We all make tax saving investments throughout the year but sometimes even forget to include the same in the return. To avoid this one should maintain the list of the tax saving investments made.
As we are again at the tax filing time of the year, some caution points would ensure an error free tax return filing:
1) Correct Form of Return
The first step is to pick up the correct return form, which is prescribed by the Central Board of Taxes (CBDT) every year. The Income Tax Return (ITR) forms by CBDT depends on the various streams of income. Correct form ensures that the complete details are filed.
2) Correct address and correct bank account number
For timely correspondence with the Income Tax authorities as also for timely delivery of refunds claimed in the return, it is very important to mention the correct address and bank account details along with the MICR code in the return form.
3) Permanent Account Number (PAN)
PAN is an important identification number by way of which the income tax authorities identify a particular taxpayer and records his income, taxes deducted on his behalf and the taxes paid by him. Quoting of incorrect PAN may cause hardship to both taxpayers as well as to income tax authorities. So double check your PAN.
4) Staying updated with the current tax law
Before you start preparing your return, you should stay updated with the current tax law. The deductions and exemptions available as per the law or the provisions of clubbing of income. This ensures that the income disclosed in the return is complete and the benefit available under the law is considered. Eg. Deduction of INR 10,000 for saving account interest or no deduction available in this assessment year for investment in infrastructure bonds.
5) Checking your Bank account statements
One should always review the bank account statements. By doing this you always get an idea of the various streams of income which you need to disclose in your return. This clarifies the type of return forms you need to use for filing your return.
Further the error of not including a particular income is avoided, e.g. we all earn interest income on our savings bank accounts and at times due to the insignificant amount; we forget to include the interest income in our return of income. A common slip up that happens is non-disclosure of income exempted from tax, such as dividend income from mutual funds or capital gain on securities.
6) Overseas income
Nowadays, few of us have started investing in the overseas markets or receive some income abroad. The same should be included in the return as well. Moreover, one should not forget applicable treaty benefits available under the law to avoid double taxation.
7) Deduction under Chapter VI
We all make tax saving investments throughout the year but sometimes even forget to include the same in the return. To avoid this one should maintain the list of the tax saving investments made.
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