#FinancialBytes: 9 things to keep in mind while filing ITRs
What's the story
July has almost come to an end, and the deadline to file ITR ie. 31 July (for most of us) is closer than ever, with just 4 days to spare. In case you haven't yet filed your ITR, you better get going to avoid getting penalized. Since silly mistakes could be troublesome in the long run, one must keep these 9 things in mind when filing ITR.
Instruction Set 1
About selecting ITR form, and filling out details
In total, there are 7 ITR forms to choose from. So, carefully select the correct ITR form for yourself, based on your income. Wrong form selection can result in your filing getting rejected. Further, one should also be careful when filling out their personal details like PAN, email ID, phone number, bank account number, and IFSC, as any mismatch could lead to form rejection.
Instruction Set 2
About sources of income, and sections for deductions
Include all your income sources, taxable or non-taxable. One may think of excluding income sources exempt of tax, but exclusion of any form of income comes under 'concealment of income', and one may end up getting an I-T Department notice for doing so. Always ensure that you've claimed deductions under appropriate sections to get the right amount of tax liability.
Instruction Set 3
About cross-checking forms, and TDS in case of job-change
Always cross-check Form 16 and Form 26AS for any mismatch, to make sure that your own records are in sync with the I-T department's records. A discrepancy could mean higher tax, lesser refund, or even a notice. In case you have changed jobs during the concerned assessment year, do share details of TDS at previous job with the new employer, to avoid double-deductions.
Instruction Set 4
About computing tax liability, losses, and specified investments
After identifying all sources of income and deductions, compute your tax liability accurately, to avoid getting a notice. Claim losses, if any, incurred during the year such as loss on sale of an asset, but make sure to do this within the due date. Do furnish information on certain specified investments - for example, a cash deposit of over Rs. 10 lakh.