It is necessary to file your income tax return (ITR) on or before the due date, with complete and correct information about your income and any other information requested on the ITR form. Incomplete or erroneous ITR details may result in an ITR being deemed invalid or possibly the imposition of a penalty on the assessee.
There is a high possibility of making mistakes when filing an ITR, such as providing the income tax department with missing or erroneous information.
As a result, every assessee should be completely prepared with the essential documents and pieces of information for submitting ITR, such as income, investment, tax payments, prepaid taxes, Form 26AS, various certifications on which deductions would be claimed, and information on the residential status. Information on related bank accounts, assets and liabilities, and so on.
An individual taxpayer must be aware of the following things:
· If a minor child’s or spouse’s income is combined in the taxpayer’s hands, that income must be stated on the ITR form. Most people fail to disclose such earnings. In such circumstances, the Income Tax Department may issue a notification.
· It is necessary to include all interest income from savings accounts and FDs with banks and post offices in Schedule OS (Income from Other Sources) and then claim a deduction under Section 80TTA (up to Rs.10000) or Section 80TTB (up to Rs.50,000 in the case of a senior citizen), as applicable.
· All income obtained during the previous year must be recorded on the ITR form, regardless of whether or not it is tax-free. The ITR form has a separate schedule for reporting tax-exempt income. If you do not declare all of your income, you will receive a notice from the Income Tax Department.
· When reporting an ITR, an individual taxpayer should provide the right bank account number, as the refund will be credited automatically by the Income Tax Department to the account number listed on the ITR form. A refund cannot be issued to a taxpayer who mentions the inaccurate account number on the ITR form.
· It is critical to include all income, even if tax has already been taken from it at the time of receipt. It is required to include the income in the ITR form, as well as the amount of tax that has already been deducted on the ITR form’s “Tax paid” sheet.
· Certain personal things, such as jewelry, archaeological collections, sculptures, sketches, paintings, and so on, are not considered personal effects and are thus recognized as capital assets. Any capital gains from the sale of these things must be reported on the ITR form.
· It is also necessary to include the tax credit details as per the TDS and TCS certifications available with the assessee for claiming such tax credit in the schedule provided for reporting TDS and TCS in the Income Tax Return Form, and to cross-check with Form 26AS details.
· Deduction for Investment claim under 80C, 80CCC, and 80CCD
· Deduction for payment claim under 80D and 80DDB etc.