July 31, 2019—the last date for filing income tax returns is fast approaching, meaning, the days for filing Income Tax Return (ITR) are numbered. So, gear up and complete the annual tax filing exercise in order to avoid delay or any mistakes in the process. Also, you must take necessary precautions during the entire procedure. Lest, in haste you may make mistakes at the time of filling income, investments and tax deducted details online.
Tax experts advise to avoid mistakes and delay in filing of ITR, individuals should opt for online income tax filing process as, according to them, e-filing helps in correcting mistakes on a real-time basis. Besides, there are a number of online portals that make the process hassle free. According to Vikas Dahiya, CEO, All India ITR, it is important for the taxpayer to choose the correct ITR form based on his or her known sources of income. For example, salaried individuals also having income from property and other sources like interests amounting to a total income of up to Rs 50 lakh can use the one-page ITR 1 or the Sahaj form. The Income Tax Department has already released seven forms, ITR 1 to ITR 7, for different types of taxpayers. This year the IT department has made certain changes in ITR 1 and ITR 2. For example, for FY2018-19, taxpayers having below Rs 5 lakh income cannot be filed ITR 1 in paper format with no refund. Now, only super senior citizens of age 80 years and above can file ITR 1 and ITR 4 in paper format.
A significant number of taxpayers either forget to mention interest earned under the all sources of income head or gets confused, as they do not consider interest earned as income. “Taxpayers should declare all sources of income and the income shown in the ITR form should not be less than what is reflecting in Form 26AS,” said Dahiya. Form 26AS has all the details related to tax deducted on your income. Besides, taxpayers must provide correct name, address, father name and so on. “Also mention correct bank account details so that you can get refund without any hitch,” he added.
Note that interest income you get on your savings bank account is counted under income from other sources head. Besides, interest on fixed deposits is also included in other sources. You can easily get to know how much interest income you eared on savings bank account. For this purpose, you only have to check your monthly or quarterly bank statements, which you can see by logging on to internet banking. An interest income up to Rs 10,000 is exempt from tax.
Early this year, the last date for linking Aadhaar with PAN was extended to September 30, 2019 from the earlier March 31, 2019. For filing ITR, linking of the two crucial documents has been made compulsory. Similarly, quoting of Aadhaar number at the time of filing of ITR has also been mandatory. “If any details in the PAN and Aadhar do not match, they should be updated before filing ITR,” confirmed Dahiya. Linking Aadhaar with PAN is simple and easy. You just need to visit income tax e-filing website and complete the process in three steps.
Remember that if you do not link Aadhaar with PAN, you will not be able to file ITR. Also, the IT department may declare your PAN card invalid if you fail to connect the both.
At times, taxpayers unknowingly mention details, which do not match with those mentions on certain documents. For example, sometimes income declared in ITR forms is less than what it shows in Form 26AS. “Also, TDS declared in ITR Form should match with what is reflecting in Form 26AS,” Dahiya explained. Before filing the ITR, you must keep handy Form 16 and Form 16A for filling correct TDS details, calculate interest for saving’s bank account. By doing these exercises, you can avoid making mistakes, that will result timely refunds as well.