Planning To File Your ITR? Key Tips Before Filing Of ITR

The tax filing deadline has been extended this year up to 31st August 2018. Many of you must be busy preparing for the same. But very often we end up making mistakes which can put us in deep trouble. Here are some common mistakes that we must avoid while filing our IT returns.

Points to remember before Income Tax filing

1. Do not ignore taxation rules while filing ITR:

You must not make the mistake of ignoring the rules of taxation. One of the best examples about properties; say, a person has two or more properties in that case only one property will be considered as occupied by the owner. Other assets will be considered as rented. The person will have to pay the tax accordingly.

2. Report all sources of income:

You must not ignore income from any of the sources. While filing your income tax returns you need to consider income from your salary, the interest that you earn from your fixed deposits and savings account. If you miss out on considering income from any source and the income tax department traces this source of income then you can get a notice from the department. You will then have to give an explanation for the same to the IT department.

3. Personal details need to be updated:

If there is any change in your personal details like your address or your mobile number, then you need to mention the same while filing the returns. Some people make the mistake of not updating these details while filing the returns.

4. Mismatch in Form 16 and Form 26AS:

If there are any discrepancies or any disparity in the details mentioned in the Form16 and Form 26AS even then you can get into trouble. Check the figures in both the forms and make sure that all correct information is provided in both the forms.

5. Mention correct deductions:

Check properly that you have mentioned the correct deductions. It is also important that you mention the deductions under the correct heading.

6. Tax filing should not be delayed:

Under any circumstances you must not delay the tax filing. Make sure that you file your returns before the deadline. From this assessment year penalty will be levied if you file your returns after the due date. If you file the returns after the due date and by 31st December then there will be a penalty of Rs 5000/- and if the returns are filed after 31st December then there will be a penalty of Rs 10,000/-

7. Select right ITR form

While selecting the ITR form be careful to select the right one. This is because different sources of income have different ITR forms.

While filing the assessment year even a minor mistake can lead to redundant future hassles. Remember, Assessment year is the year subsequent to the financial year for which you calculate your income and pay taxes. Say, for the financial year (FY) 2017-2018 your assessment year (AY) will be 2018-2019.

Hey! Your assessable income exceeded 5 lakh, well, it becomes mandatory for you to e-file your tax return. There are few general mistakes which may take place while filing your income tax return. To stay away from all these problems it is better the get ready for your IT returns well in advance and file your returns ahead of the due date.