INACCURATE RETURN CALCULATION CAN INCREASE TAX LIABILITY
These are the last days of filing income tax return. Earlier you just handed over your Form 16 to your Chartered Accountant or TRP to file your return but now efiling is compulsory for people having annual salary of more than Rs 10 Lakh.,
Generally, returns filed electronically would have all the information mandatory to be filled in. The ITR would be considered inaccurate if certain details mentioned in return are wrong or certain details are missing altogether.
-COMMON MISSES: The most common detail which tax payers forget to mention is the interest income from FDs. The second most important element could be claiming deductions/exemptions which tax payer is entitled to, but are not reflected in Form 16. Sometimes employees invest in tax saving instruments after submitting their investment declaration to the employer. In such cases the Form 16 will not have complete details of such investments.
(a) For Salaried Employees: You have to mention details of your rental income, capital gains or income from other sources such as bank interest, etc. earned during the year.
(b)For self Employed Individuals: A self employed individual should select the correct income tax return form i.e. ITR4 or ITR 4S. He can take full advantage of all business expenses.
-GET THE NUMBERS RIGHT: Mostly tax payers who file their return themselves often enter the amount of gross salary instead of the amount of taxable salary in the tax return form. This often results in taxpayers receiving demand notices from the tax department. Sections of deductions under Chapter VIA should also be filled accurately. Details of interest on housing loan should be entered correctly.
-REVISING THE IT RETURN: If you file your return online and realise later that there is a mistake in the ITR, you can rectify it by filing a revised income tax return. A revised income tax return can only be filed if the original income tax return is filed within due date. The revised return can be filed within 2 years from close of financial year. If original return is filed electronically then revised should be filed electronically only and if original return was filed manually then revised return should also be filed manually.