Income Tax News: Attention! Check What Points to Consider while Filing ITR to Avoid Major Mistakes

Income Tax News:  As people started filing ITR, there are chances of doing mistakes if it is not done carefully especially from those who are beginners because tax filing process is a little complicated. People should keep in mind some points which are explained here in the article so that they do not do any errors in tax filing.

1. Income Tax Return Filing before Deadline 

People should file return before last due date to avoid penalties. Normally, every year last due date is 31st July which can be extended for few days or months depending on the situation. The last date to file ITR is changed from July 31 to September 15 as there were substantial structural modifications in ITR forms introduced in the recent Budget.

2. Choosing Correct ITR Form

Many people do mistakes in choosing ITR form. People should know which form to be used as per their income sources. Here is a brief description of mostly used ITR forms:
ITR-1: Salaried individuals with simple income
ITR-2: Individuals with capital gains 
ITR-3: Business owners or professionals
ITR-4: Presumptive income scheme users
ITR-5: Firms, LLPs, AOPs, BOIs

3. Verification of AIS & Form 26AS 

Many people forget to verify their Annual Information Statement (AIS) and Form 26AS before submission. These documents provide comprehensive details of financial transactions and tax payments. If you missed reporting anything, you could get notice from the tax department. Form 26AS shows tax credit statement. AIS includes everything in Form 26AS plus additional information.

4. Reporting of All Sources of Income 

A taxpayer should present all types of income while filing ITR. This income can be interest from savings accounts or fixed deposits, rental income, capital gains from stocks or mutual funds etc. It is mandatory to report all sources of income accurately in the ITR. Missing to report any income will lead to penalties. 

5. Verifying Income Tax Return 

After the completion of filing ITR, it is important to follow the next step which is its verification. If an ITR filed remains unverified, it will not be a valid ITR. The process of verification is very easy and is done online using Aadhaar OTP or net banking. 

All the taxpayers, who have not filed their income tax return yet, should be careful at the time of filing return and disclose all the information regarding expenses and incomes. This will help them to avoid penalties or notice from income tax department.