ITR News: Be sure to match all your transactions and tax deductions with Form-16, AIS and Form 26AS. Salaried employees will get Form-16 by this month.
ITR News: The process of filing Income Tax Return (ITR) for the financial year 2023-24 has started. Experts advise that you should do some preparation before filing ITR. Like, match all your transactions and tax deductions with Form-16, AIS and Form 26AS. Salaried employees will get Form-16 by this month. By taking some precautions, tax payers can avoid notice from the Income Tax Department.
Do this work first
1. If you have not linked PAN and Aadhaar yet, complete this task first.
2. If you want to get full refund on time, then check your mobile and PAN number with your bank. If there is an error, write to the bank for KY.
Avoid these mistakes
1. Incorrect personal information: While filling the ITR form, taxpayers should ensure that all the personal information like name, PAN, address and bank account details are filled correctly in the form.
2. Choosing the wrong ITR form: It is important for the taxpayer to choose the right ITR form depending on the source of income and type of income. Filling out the wrong form can lead to problems and fines.
3. Not giving complete information about income: Information about income from all sources including salary, interest income, rental income, capital gains must be given in ITR. Hiding this may result in penalty for tax evasion.
4. Ignoring TDS: Must include the details of TDS from Form 16 and 16-A issued by the employer or the deductor in the ITR. Failure to provide correct TDS information may result in penalty.
5. Incomplete information on investments and deductions: Correctly declare all investments, expenses and deductions to claim eligible tax benefits under Section 80C, 80D, 80G of the Income Tax Act. Failure to do so may increase tax liability.
6. Hiding interest income: The taxpayer should give correct information about the interest earned from savings account, FD or other sources. It is mandatory to disclose interest income.
7. Not matching Form-26AS: All details filled in ITR must be matched with Annual Information Statement (AIS) and Form 26AS. This can be achieved by downloading the AIS app. It contains details of your income tax related information.
8. Not filing ITR on time: The last date to file ITR may vary depending on your tax bracket, so check it properly. Late filing of ITR may result in penalty.
9. Not verifying ITR: After filing ITR online, be sure to verify it electronically (through OTP or net banking). Without this the process will not be completed. ITR can also be verified by sending it to the department’s address.
10. Not maintaining necessary records: Maintain records of all documents, receipts and evidence related to income, investments and tax deductions. These may be required for verification or in case of any tax investigation in future.
