Many times people do not pay attention to some small things while filing income tax returns, due to which neither they get refund nor ITR is considered valid. Let us know what are the important things to keep in mind while filing ITR.
31st July is the deadline for filing ITR
ITR will have to be filled after the deadline
The deadline for filing Income Tax Return (ITR) is nearing. The Income Tax Department itself is reminding the taxpayers of this every day and is appealing to file ITR as soon as possible. If you have not filed ITR yet, then do this work without delay. At present, the last date for filing ITR i.e. deadline is 31 July 2022.
Not only is the refund of deductions made in the assessment year (AY) related to filing income tax returns, apart from this, there are many importance of ITR. If you want to take a car loan or home loan, then the bank will ask for ITR from you. Therefore, even if your income is not taxable, you must still file an income tax return. Many times people do not pay attention to some small things while filing income tax returns, due to which neither they get refund nor ITR is considered valid. These small mistakes can prove to be a big loss deal for the taxpayers. Let us know what are the important things to keep in mind while filling ITR, so that you do not have to face any problems.
Selecting the correct form of ITR
Choosing the right ITR form is the most important thing while filling ITR. Which ITR form you have to fill depends on many factors like what are your sources of income, do you have any residential property, do you have any property abroad or are you a partner in a company? If you are a salaried person and your only source of income is salary, then you have to file ITR-1. On the other hand, if you are earning profit from any business or capital gain from share market, mutual fund or property, then you will have to file ITR-2.
Personal and bank account details
It is very important to give accurate personal information while filling ITR. Providing even a single wrong information can lead to rejection of ITR form. Apart from this, taxpayers claiming refund should provide correct bank account details. It is also necessary to have a pre-validated bank account. Refunds may get stuck if the IFSC code or bank account information is not correct.
Concealment of income in ITR
Many taxpayers do not show tax exempt income in ITR. For example, interest earned from PPF, interest received in Sukanya Samriddhi Yojana, gift from relatives etc. By the way, let us tell you that not all gifts received from friends, family and relatives are tax-free. After a limit, income tax has to be paid on them too. The Income Tax Department can send you a notice if the income of these tax-exempt methods is not shown in the return.
waiting for the deadline
Filing ITR after the deadline may attract a penalty. If you file your return before 31st July 2022, you will get the option to amend ITR in case of mistake. If you file your return after this deadline, you will not be allowed to make any corrections. If the deadline is not extended, then filing income tax returns after July 31 may attract a fine of up to Rs 10,000.
Not verifying ITR
Filing ITR is not enough. Verifying ITR is as important as filing returns. Many people fill ITR but do not verify it. You have 120 days to verify your ITR after filing your return. There are many options available to verify ITR. The easiest way is through Aadhaar authentication. Apart from this, ITR can also be verified through bank account. If it is not online, it can be verified by sending a copy of the ITR to the Central Processing Unit. Remember, your refund will not be processed until the ITR is verified.
Everyone should file ITR
There are also many such cases that many people do not file ITR at all. Everyone should avoid making such mistake. If your income is taxable and you are not paying tax or if you have given wrong information regarding income, then it is assumed that you were trying to evade tax. In such a situation, the Income Tax Department can not only issue you a notice, but can also impose a hefty fine. Apart from this, there may also be a chance to suffer a jail sentence. Apart from these, by not filing ITR, you can be deprived of many benefits. You will have problems in taking any loan from the bank.