IT Department: Important news! Keep these 8 things in mind while filing ITR, otherwise your ITR refund may get canceled, know details

At the time of filing ITR, the taxpayer should give correct details of all his earnings and transactions. By doing this, the taxpayer does not face difficulties in future.


The last date to file Income Tax Return (ITR) for 2020-21 is December 31, 2021, which is drawing near. If you have not filed the return yet, fill it soon to avoid any penalty. While filing ITR, there are 8 things that taxpayers should keep in mind and give accurate information about their every earning and transaction. Failure to do so may result in a notice.

1. Choose the correct form
   Before filing the return, choose the right form based on your earnings. The Income Tax Department has prescribed several ITR forms. If the correct form is not filled, the return will become invalid and the amended return will have to be filed under the Income Tax Act.
2. Specify all sources of income
   Taxpayers should provide accurate income information. If you intentionally or accidentally do not disclose all your sources of income, the Income Tax Department may notice. Information such as savings account interest and house rent income are also required to be given at the time of filing the return as these come under the purview of tax.
3. Give details of bank accounts
   In ITR, taxpayers do not give details of all their bank accounts with which they have transacted in that financial year. The Income Tax Act makes it clear that taxpayers are required to provide details of all bank accounts registered in their names. Failure to do so may result in fines.
4. Reconcile income with Form-26AS
   

   
   Form-26AS or Tax Credit Statement gives all the details of payment of TDS deducted on your earnings. So do check it before claiming refund. Also, taxpayers should reconcile their income with Form-26AS and Form 16/16A by filing ITR. This does not result in any mistake of calculation of tax.

5. Verify ITR
   After filing the return, you can verify it by visiting the e-filing portal of the Income Tax Department or can also get it verified by sending it to CPC-Bangalore. Verification is required within 120 days of filing the return.
6. Enter gift information
   You must also give the information about the gift received while filling the ITR. As per the Income Tax rules, if you have received gifts worth more than Rs 50,000 in a year, then you will have to pay tax on it.
7. Also give information about foreign bank accounts
   As per the Income Tax rules, all taxpayers in India will have to disclose all foreign assets, including bank accounts, at the time of filing returns.
8. Don’t misreport tax-exempt income
   Taxpayers sometimes give wrong information about tax free income to save tax. If caught, the department can take action against you.