31st March, 2020 is the last date for filing one’s income tax returns pertaining to AY 2019-20 for both resident and non-resident salary receiving individuals and also for people who are partners in firms with turnovers of less than an amount of Rs.1 Crore. Thus, this is indeed a taxing process, and you can learn more about it as you keep reading on!
One must first determine whether he needs to file returns as the government has provided an exemption for some people. Further, I have mentioned certain points which should be keep in mind if you want to be correct in filing your return.
As we all are aware that there are various forms which are applicable for different assesses according to their nature of income. Hence, it is the first step which you have to look carefully whether we are choosing correct form or not?
Be careful when you are entering your PAN Number as normal to make mistakes given the complexity of the number. You can also confirm you PAN Number online at the website of income taxes.
The income tax department issues a statement of TDS to all assesses called Form 26AS and is available online. The form includes details of TDS: Tax Deducted at Source TCS: Tax collected at source, Advance taxes or regular assessment tax, self-assessment tax, and details of refunds if any issued.
You can also learn how to rectify income tax return online in case of any mistakes. You will be provided with steps to file revised income tax returns online at the website.
The new system allows refunds of up to Rs.25000 to be credited directly to your bank account. For this, the correct bank details are necessary and hence one must be careful in handing out the Bank Account Number, BSR Code and the MICR Code.
Also, any income from sources like earnings received from mutual funds or capital gains, interests amount on savings deposits, or any other business income.
As per the Income tax act of 1961 people who are tax-paying citizens of India are required to pay taxes for their other assets located globally as well. They have to provide details regarding the incomes earned abroad and also bank account details if any held abroad.
You also keep in mind that certain forms of incomes can be deducted while filing claims and thus you should check and see which of them could be eligible for the same under section 80C, 80D, etc. This should be done by filling out the relevant information in the forms so that you can get credit which processing the returns itself.
If you forget to file your returns in time, you will have to face interests and penalties. There is also a penalty for filing wrong income tax returns. Filing them in time will allow quicker processing of ITR and refunds if there are any.
Also remember that for people whose income goes beyond Rs.10 lakhs they can file returns online only.
Thus, keep in mind these small important details, and you’ll be good to go!