The last date for filing income tax return (ITR) for FY 2019-20 is 30 November 2020. The government has extended its deadline to november end because of the Kovid-19 epidemic. This means that now the textiles have more time to file income tax returns. There are many advantages in filing ITR. But if there is any disturbance, there may be a loss. In view of this, we are telling you about some of the mistakes that occur while filing income tax returns so that you keep this in mind.
Choosing the wrong ITR form
Income tax return forms have also been prescribed in terms of various kinds of textiles.
For example, ITR-1 is for people earning up to Rs 50 lakh annually and earning from house property or other sources. Similarly, ITR-3 forms are for earners through business and profession. ITR-4 is for freelancers etc. That is why it is important to choose the correct form while filing itr. If the wrong form is filled in, the income tax return filed by you will not be valid and an income tax notice may also be received.
Don’t tell all income source information
While filing income tax returns, it is mandatory to provide accurate information about all sources of your earnings. This includes earnings from your first employer, existing employer, investment, etc. If no source is reported, it will be clearly visible in the TDS certificate and Form 26AS. In doing so, the income tax department may send a tax demand notice after scrutiny so that the textile can deposit additional outstanding taxes.
Form 16 contains only information about the tax deposited by the employer. The taxpayer is also required to provide information about the earnings after TDS or tax deduction. They are required to know about the interest on PPF, agricultural income and earnings from LIC maturity etc.
Declaration of Capital Gains on Asset Sale
The ITR file also requires information about the sale, purchase or expenses incurred on capital assets. Even if the textile claims to sell the capital assets and invest, they are required to provide full investment information. ta
Information about interest on investment
The textile is also required to provide information on interest on fixed deposits, savings accounts, post office schemes, bonds and other investments. Interest on savings account is eligible for tax deduction. For people below 60 years of age, it should not exceed Rs. 10,000. When it comes to fd, interest on post office schemes, it gets a tax exemption of up to Rs 50,000.
Information about the income of the minor
If the textiles have made any investment in the name of minor children, the interest will have to be shown as income. It is usually combined with the potential that has a higher income. Textiles can claim tax exemption for two children for earnings up to Rs 1500-1500.
No verification of TDS details with Form 26AS
Form 26AS is a category of TDS and tax payment. It contains information about income from salary, interest, sale of immovable property etc. This Form 26AS and TDS detail should be verified before filing tax returns. You can download textile form 26AS through income tax login. It is available on the e-filing portal of income tax.
Provide information about all bank accounts
A taxpayer has to provide information about all your bank accounts while filing income tax returns. However, it does not include inactive bank accounts. Textiles can also select the bank account in which they want to receive tax returns.
In general, the textiles assume that all donations they receive are 100 per cent tax free. However, this is not correct. Only 50 per cent tax exemption is available on some donations.
Not filing income tax returns
Generally, people assume that filing income tax returns is not mandatory because their total earnings are out of tax liability in the tax slab. If a person deposits Rs 1 crore in his bank account during a financial year or has spent more than Rs 2 lakh on foreign travel or deposited a plus electricity bill of Rs 1 lakh in a year, he must file income tax returns. Also, even if a citizen owns a property outside India, he should file income tax returns.
