Filing of return of income is obligatory as mandated by law. What is more important is ‘filing a defect free return’. Filing defect free return is the simple way to keep income tax notices at bay. Following is a checklist to ensure a defect-free return:
Ensuring personal details match with PAN and Aadhar
Enter your personal details carefully & correctly. We require a copy of the ITR when we are applying for a Visa or a Loan. Any errors in entering address or any other personal details would be a big impediment later on for those processes.
Ensuring taxes have been paid in full
The correct calculation of the tax is the key. Filing of return of income can happen only after the taxes are paid. Timely calculation of these taxes will also ensure that you file your return of income before due date. Failure to file your return on time will invite penalty of minimum ₹5000/-. Being vigilant and doing timely compliance is the key.
Ensuring correct ITR Form as per sources of income
Choosing the correct ITR form can be a tricky issue. It is determined on the basis of your sources of income. Taking expert guidance, if required, is advisable, as a wrong ITR form will result in an invalid return of income.
TDS in Income Tax Return should match with 26AS statement
The authentic way to verify tax credits is the 26 AS statement. We shall generate 26 AS statement to verify whether the TDS credit is reflected. This will ensure filing and claiming the correct TDS in return of income. In this way we can reduce the probability of getting any query or notice from Tax Department.
Reporting of the exempt income
Exempt income may not be taxable but reporting the same is mandatory. Exempt income like agriculture income is required for calculation purpose. All other exempt incomes also should be reported properly.
Reporting incomes across all Bank Accounts
Reporting incomes across all bank accounts ensures that you do not miss out on any income which can result in additional taxes, interest and penalty later.
Minor’s income should be clubbed
Income of minor (before attaining the age of 18) upto ₹ 1500 per child is exempt from taxation upto maximum of two children. Any income above ₹1500 needs to be clubbed with income of one of the parents.