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Top 3 Things you must keep in mind while filing Your ITR this year

Threshold limit:

Filing of Income Tax returns is mandatory for both Individuals & NRI’s. If an Individual’s total Income is 2.5 lakh then they ,has to file the tax return. Even if assesseetotal income  is 2.5 lacs  before permissible deductions it is required to file Nil Return for records. As the department captures transaction details from various sources using Artificial intelligence.

Keep all details mentioned in return –

As you would appreciate the return filed by us is annexure less if the department require any information it will call for then you need to submit the same online. Salary income tax return must have detailed salary break-up of all components as we need to fill in all details separately  from current and former employer(if any)

Make sure that you have  form 16 & 26AS in place because form 16 contains TDS deducted from employer from salary paid and 26 AS form capture all credits to your PAN and tax credited to the same

Disclosure of all details as applicable :

  • Assesseeshould disclose income from all heads also like income from business and profession, income from capital gains/losses from sale of equity shares, mutual funds or sale of property, income from house property, income from other sources like savings account interest, fixed deposit interest .
  • It is mandatory to disclose foreign income, assets also if the assessee is resident in India.
  • Even if there is exempt income the same needs to be disclosed in exempt income sheet of the ITR for disclosure purpose.
  • Assessee has right to claim all eligible deductions like PPF, LIC, rent paid, Principle paid onhousing loan, medical insurance., under chapter VI A .

Donations made in cash above Rs 2000 are not eligible for 80 G deduction. Choosing the right tax form:

Keeping in mind that there are several forms to file income tax returns, Income Tax Department has categorizedtaxpayers on the basis of income,  residential status , amount of total income

For example

  1. Only if a person is Resident having salaried income with annual earnings less than INR 50lacs, Income from one house property, Income from other sourcescan file ITR-1.
  2. If a person is resident but not ordinary resident or non-resident with salary income, Income from more than one house property, Income from capital gains & Income from other sources can file ITR-2.
  3. An assessee being an Individual or HUF having income from business and profession, Income from house property, Income from capital gains & Income from other sources can choose to file ITR-3
  4. An individual or HUF not having more than 50lakhs income from salary, income from house property, income from other sources can file ITR-4.

Choosing a wrong form for filing the return is as in non filing of the tax return which attracts penalty of Rs 5000

Disclose proper personal details:

Correct personal details must disclose such as name, Aadhar number, mobile number, gender, date of birth, email address. As any communication from tax authorities are now a days on digital mode valid and personal email id , contact number is mandatory . If a person is eligible for tax refund, then he must disclose preferred bank account number for smooth flow of funds and also disclose the number of bank accounts held by them.

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