Income Tax News: Attenion! Don't Make THESE Mistakes While Filing Your ITR, IT Department Can Impose Hefty Fines

Income Tax News: Indian taxpayers are preparing to meet their financial duty as the Income Tax Department opens both online and offline channels for submitting Income Tax Returns (ITRs) for the fiscal year 2023–2024. Tax professionals do stress the significance of exercising caution while filing, though. Errors or omissions may result in fines if the Income Tax Department investigates your case. The following are important things to remember while filing your ITR:

Settlement of Credit Card Bills

Payments of more than Rs 10 lakh in cash over the course of a fiscal year, or deposits of more than Rs 1 lakh in cash for credit card bills all at once, may trigger inquiries from the Income Tax Department. It is essential to reveal the source of these funds in order to stay out of trouble.

Property Purchases

Property registrars are required by law to automatically disclose to the Income Tax Department any immovable property acquired for more than Rs 30 lakh in cash in a given fiscal year. It is the responsibility of taxpayers to accurately report these transactions in their ITRs and to disclose the source of money.

Cash Deposits in Fixed Deposits

Disclosure of the funding source is required for cash deposits into Fixed Deposits that exceed Rs 10 lakh in a single year. Deciding to do online transaction can contribute to keeping an open ledger of activities and possibly avoiding investigation.

Cash Deposits in Bank Accounts

Detailed disclosure in the ITR is required for transactions involving cash deposits in a bank or cooperative bank of more than Rs 10 lakh within a year. If this information remains hidden, the Income Tax Department may investigate.

Investments in Securities

Any cash investments made in stock markets, mutual funds, bonds or debentures that exceed Rs 10 lakh within a fiscal year must be specifically disclosed in the ITR. Failure to comply may result in scrutiny by tax authorities.

Benefits of Filing Income Tax Returns

1. Tax Refund: Taxpayers can request refunds of taxes paid, if any, by filing an ITR.
2. Tax Savings: To reduce your tax obligations, take advantage of deductions and exemptions.
3. Application for Visa: ITR is a need in order to be granted a visa for travel abroad.
4. Insurance Policies: Required to get greater coverage insurance policies.
5. Government Programmes: ITR paperwork is required to access government subsidies and welfare programmes.