Cautions and precautions required while filing ITR

One should always keep some precautions in mind while submitting income tax return (ITR). The points that should be kept in mind while filing ITR are:

• The most important thing while filing income tax return is that one should always file income tax return before due date otherwise this will attract penalties. Taxpayers should always avoid belated return. Delay in return filing will result into not carrying losses to the next period.
  Simply means after due date losses other than house property loss cannot be carried forward.
• The next important thing is that quoting Aadhaar made compulsory while filing income tax return, if taxpayer don’t have Aadhar then you have to provide enrolment ID of Aadhaar application.
• While filing income tax return report interest from saving bank accounts under income from other sources and claim the deduction of Rs 10,000 under section 80TTA. Here only saving accounts interest is included. This deduction can only be claimed for persons who are not senior citizen. For senior citizen section section 80TTB is applicable in which they can take an exemption of Rs. 50000 and in this section deduction is applicable for both saving account and fixed deposit account.
• Taxpayer should also have to report about the fixed deposit and recurring deposit in Income from other sources. Now even though TDS is not deducted interest income shows up in Form 26.
• Taxpayer have to mention correct details, personal details, bank details, TDS details, etc.
• If taxpayer work in MNC and have stocks like RSU, ESPP, ESOP foreign companies then report it as foreign assets.
• Taxpayer have to report about his exempt income like income from PPF, Tax free bonds, long term capital gains on equity, etc.
• Taxpayers should claim deductions under section 80 according to investment.
• One should club income of wife or children while filing income tax return. If taxpayer opened a bank account of his child then show the interest from that bank account.
• Taxpayer should have zero tax due before filing ITR. Calculate tax liability and pay self-assessment Tax if due using Challan 280 and update ITR.
• One must download the Form 26AS and should confirm the actual TDS/ TCS paid. If any discrepancy or blunder is observed then necessary action should be taken to reconcile it. Don’t forget to show all the income as appearing in Form 26AS on which TDS has been deducted.
• Taxpayer should carefully provide all the information while filing income tax return in return form. He should confirm the calculation of total income, deductions, interest, tax liability/ refund, etc.
• It is worth mentioning that citizens below the age of 60 whose gross total income exceeds the basic exemption limit that is Rs. 250000 are required to file income tax return and the citizens of age above 60 years and below 80 years have to file INCOME TAX RETURN if gross total income is above Rs. 300000 whereas for super senior citizens whose age is 80 years or above this limit is fixed at Rs. 500000.
• It is very important to understand that for considering the limit above which we have to file Income Tax Return GROSS TOTAL INCOME is considered and not TOTAL INCOME. It means we have to see whether before claiming any exemption under chapter VI A of Income Tax Act our income exceeds basic exemption limit as discussed in previous point.
• Choose the right mode:
  • Online tax filing
  • E- filing
• After submitting ITR do E- verification or send ITR- V.