Dos and Don’ts While Filing Income Tax Return
Picture this! You wanted to file your income tax return and unaware of some rules that you need to follow while doing that. Thus, to help you correctly file your income tax return, you would need to follow some dos and don’ts while filing ITR.
When you file your income tax return online or offline on time, you save yourself from paying unnecessary penalties. However, when it comes to filing the IR, it’s not that easy process and considering some dos and don’ts while filing ITR can help you.
Also, you can use the income tax calculator if you don’t know how to calculate tax and what is payable from your end as per your income status. The income tax calculator is available 24/7 free on many financial websites.
In the same context, we have outlined some handy dos and don’ts while filing ITR in this short post.
Dos while filing the ITR
1. Choose the correct ITR form
If you are a salaried individual, you will need to use the ITR 1 and ITR 2. Hence, the exact form that you need to fill should depend as per the income status of an applicant. Hence, ensure to choose the correct ITR as per your income level, to begin with, the filing of the ITR.
2. Verify calculations
Once you have determined the right ITR, you should always review all the details, including the calculations. Ensure all details match as per the details in your Form 16. To make all correct calculations, you should use the income tax calculator as well.
3. Check your Residential Status
You should also check the residential status while filing the ITR, especially if you have any income sources or assets in your name. Report your residential status every year.
4. Keep all Documents Ready
Documents related to investments, receipts, other declarations and other documents concerning your income tax returns should be kept ready. You will also need to keep your PAN Card, Aadhaar Card and other proofs of capitals if any ready.
5. Cross Check the Form 26AS
The Form 26AS is the critical document concerning your income tax filing. It shows all the TDS and TCS that is already deposited with the Government from your side. It also helps you in reporting all income sources, for which tax has been deducted. If you fail to report anything reported in this form, it can lead to notices by the IT department.
Don’t to Consider While Filing the Income Tax
1. Make mistakes in your personal information
Any mistake in your personal details will lead to delayed or failed ITRs. Thus, ensure to check your name, bank details, postal/email address, TAN details and mobile numbers matches with the concerning proofs.
2. Use provisional interest certificate for home loans
You can use the provisional interest certificate while going ahead and claiming the home loan interest. If you fail to that, it can lead to cumulative or lessening your claim amount.
3. Miss to report exempt income
While there are no taxes due on freed income, it is worthwhile to report the income under the exempted group to keep off hurdles in return processing.
4. Wait till last minute
Processing ITR-based things last minute may have the applicant under stress and that may lead to errors, and it can lead to rejections. Thus, plan things accordingly and don’t rush it and commit mistakes.
The Bottom Line
Now that you are aware of the vital dos and don’ts while filing ITR, it will help you prepare and go ahead with the filing of the IT without hassles in the future.
You should also use the income tax calculator to compute an exact payable amount so that you file the ITR correctly. If you are ready to file your income tax, you can do that online and save time and efforts.