5 Things Taxpayers must follow while filing ITR

An income tax return has to be filed by those individuals whose income surpasses the basic prescribed exemption limit defined by the Government. If your gross taxable income exceeds the basic limit, you have to file a tax return. Filing income tax returns is essential for all the required salaried persons/individuals or business holders. Every year a large number of people file income tax returns (ITR) at the end of each financial year. 

Salaried professionals and businesses need to file income tax returns to claim deductions ( if there are one) apart from providing other details correlated to income. Despite replicating the process every year, it is seen that all the ITR filers or salaried individuals end up with their ITR filing process at the last-minute causing silly mistakes that potentially affect their claims and filings. 

There are 5 standard things that you should remember while filing income tax to avoid mistakes:

Choosing the Right ITR Form 

Whether you are a salaried person or business professional and are filing income tax returns on your own, make sure that you choose the right form. If you mistakenly choose the wrong one then your entire income tax returns (ITR) filing will be deserted. However, the tax department also may send you a notice regarding the same. There are seven prescribed returns forms but salaried professionals have to select the ITR-1 form to file their income tax returns.

Provide Valid Personal Details 

Ensure that you enter all your personal details such as your PAN card and contact number correctly to avoid rejection or incomplete filing. Many times, ITR filings are rejected by the tax department due to a mismatch in personal details.

Missing the deadlines

This is a most essential thing that must be kept in mind. There is no doubt that we people chill until the last date of ITR hits the deadline. The taxpayer must file their income tax returns before the due date. If you fail to do so on time. You will have to bear penalties which are as follows:

• A late filing fee of up to Rs. 5,000 is to be levied. 
• The penalty interest rate of 1% per month will be charged on any unpaid taxes. 
• You may have to face a delay while receiving the refund on any excess tax paid.

Do not claim deductions under false sections 

There are several sections refined by the government of the Income Tax Act that should be considered carefully. However, each deduction claim has to be filed in a respective section. Claiming the deductions under the wrong sections can attract additional income tax liability. Therefore, you may also be served with notice if you have mistakenly filed a deduction under the incorrect section.

Always Double-Check Form 26AS 

If you are perplexed about how to file income tax returns, then it is a recommendation to match it with Form 26AS. Our annual statement for the year or a tight tax statement that consists of refund, TCS, and TDS. 

Doing so can provide you with a clear picture of all your tax credits and help you to identify whether you fill-up the proper information correctly in the appropriate income tax form. It is so essential for you ( Being a salaried person)  to cross-check your Form-16 with Form-26AS to avoid any last-minute mistakes.

Also Read: Things to Keep in Mind While Filing ITR

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