ITR Filing for A.Y -2024-25 have been started and approx 4.76 lakh ITR has already being filed as on date. Filing income tax returns (ITR) can be a difficult and boring task for many individuals, especially if they are not familiar with the process. However, failing to file ITRs or submitting incorrect information can result in receiving notices from the Income Tax Department, causing undue stress and anxiety. To help you avoid such situations, we have compiled a list of points to consider while filing ITRs.
Verify the correct ITR form:
There are different ITR forms available, depending on your income source, the amount of income earned, and your filing status. It is essential to select the correct ITR form based on your individual circumstances to avoid errors.
Ensure all income sources are accounted for:
Many individuals have multiple sources of income, such as salaries, investments, rental income, and so on. It is crucial to report all income sources correctly in the ITR form and avoid any under-reporting, which can result in receiving notices from the Income Tax Department. In major cases, it was observed that, an assessee has multiple bank accounts and on which they are earning interest income, however, due to ignorance, they failed to report interest income from all bank accounts.
Verify TDS details:
Tax Deducted at Source (TDS) is the amount that has been deducted from your income by the payer, such as your employer or bank, and paid to the government. It is necessary to verify that the TDS details mentioned in your Form 16 or Form 16A match with the details mentioned in your ITR form. While filing ITR, you must ensure that, you can report correct TAN Number of deductor, in case of mismatch you will receive, demand notice from Income Tax Departments.
Take Professional Help
After the boom in Indian Stock Market, many individuals has invested their money in Stock market, in which either they earn profit or face losses. Please note that, you have to report all these transactions in your ITR. Because, Depositories has to report these transactions to income tax department and if you fail to report these transactions in your ITR, then it may invite notice from Income Tax Department. These processes require adequate knowledge to correctly calculate Capital gain / Loss. If you are aware about these processes then you can file your ITR by yourself. If you have any doubts then you must take professional help. A small mistake may cost you high.
Choose Old Tax Regime or New Tax Regime Wisely
In current year, we have 2 ways to calculate our tax liabilities. Both regimes have their own benefits and disadvantages. While filing ITR, we must calculate tax liability from both option and choose the one which is beneficial for us.
Claim deductions appropriately:
Individuals are eligible for various deductions under the Income Tax Act, such as deductions for investments made under Section 80C, health insurance premiums under Section 80D, and so on. It is essential to claim these deductions appropriately and maintain supporting documents wherever required. And do not take fake deductions. In recent cases, many bogus political parties were found who are providing fake deductions and many cases were observed where fake HRA deductions are claimed by salaried class to whom Section 133(6) notices are issued. To avoid any trouble in future do not claim fake deductions.
Reconcile with Form 26AS/ AIS/ TIS:
Form 26AS/ AIS/ TIS is a statement that reflects all the taxes paid by you, SFT transactions that are reported by external parties including TDS and advance tax. It is essential to reconcile the tax details mentioned in your ITR form with the tax details mentioned in your Form 26AS/ AIS/ TIS to avoid any discrepancies.
Report foreign assets/income:
If you have any foreign assets or earn any foreign income, it is necessary to report them in your ITR form as per the guidelines mentioned by the Income Tax Department.
File ITR within the due date:
It is essential to file ITR within the due date to avoid paying late filing fees and interest. It is also recommended to file ITR early to avoid any last-minute rush and errors.
Author’s Note: As stated above, ITR filing has been started and approx 4.76 lakh ITR Filed but in my view, we must wait till 5 June to file our ITR so that time limit to file TDS/TCS/SFT report is over and we can see exact AIS/TIS report.
FAQs on Points to Consider while Filing Income Tax Return to Avoid Notices from Department
Is it necessary to file ITR if my income is below the taxable limit?
No, if your income is below the taxable limit, it is not necessary to file ITR. However, if you have any TDS deducted or want to claim a refund, it is advisable to file ITR. Further, you must take care of conditions as mentioned in Section 139, which require mandatory filing of ITR, even if your income is below taxable limit.
Can I file ITR for previous years?
Yes, you can file ITR for the previous years within the specified time limit, along with any applicable penalties and interest. For more details you can refer my earlier blog on this topic.
https://taxguru.in/income-tax/file-income-tax-return-3-years.html
Can I revise my ITR?
Yes, if you have made any mistakes or omissions while filing your original ITR, you can file a revised return on or before 31st December.
What happens if I do not file my ITR?
Non filing of ITR, may invite notice from Income Tax Department, TDS will be deducted at high rate and officer has the power to do Best Judgement Assessment/ Income Escaping Assessment, which will be very harsh in maximum cases.
So Pay Tax Karo Relax
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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. The author will not be held responsible for any loss, if occur after using above information. Kindly consult your professionals before taking any action. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers. The Author “CA Shiv Kumar Sharma” can be reached at Mobile/WhatsApp–9911303737.
(Republished with amendments)
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Tds in tax returns
Please note that for the last 5 days the TDS uploaded is not appearing in returns of many and the department or avonsultant not breathing a word of it
We are not able to file without the TDS aspect
Please advice
It is wrong to say that one can file a revised return before the end of the assessment year or before receiving any notice from the Income Tax Department, whichever is earlier. This has been changed and now the Revised Return can be filed only till 31st December or before receiving any notice from the Income Tax Department, whichever is earlier.