USEFUL TIPS AT THE TIME OF FILING INCOME TAX RETURNS
1. FILE YOUR RETURNS: There is a misconception in the minds of salaried persons that when employer has deducted tax at the source then what is the need of filing tax return by them. If your income is below the exemption limit, which is generally with everyone at the beginning of the career, filing returns will help in the documentation process if you are taking a loan or an insurance policy or when you are applying for visa.
2. PICK THE CORRECT FORM: Depending upon the various streams of income you have, you have to select the form accordingly.
3. DISCLOSE EXEMPT INCOME
4. ANNUAL INFORMATION RETURN: While filing income tax returns, it is essential to disclose any significant investments made during the year, transactions of immovable property, cash deposits, credit card expenses.
5. INCOME OF A MINOR CHILD: The income earned by the minor has to be included in the returns filed by the parents even if the amount is negligible.
6. SUBMIT ITR-V in time (online filing): If online return is filed without digital signatures then ITR-V from generated should be submitted to income tax officials within 30 days of filing returns otherwise your return filing date will be postponed to date of submission of ITR-V.
7. SPECIFY ACCURATE BANK DETAILS: The bank account number and IFSC code provided should be accurate so as to receive refunds without any hassles.
8. FILE RETURNS ON TIME: If returns are filed after due date, losses cannot be carried forward for being set off against the income in future years.
9. TWO-YEAR WINDOW: Returns can be furnished at any time before the expiry of two years from the end of the financial year in which income was earned. If income is earned during Financial year 2012-13 then its return can be furnished 31March, 2015. But if you have tax outstanding and you do not pay your tax, then a simple interest of 1% per month will be charged on the amount that is outstanding.
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