It is very important to file an income tax return (ITR) on or before the due date
with complete and accurate information about income and other information asked
to fill in the ITR form. Incomplete ITR details or inaccurate information may lead
to an ITR being treated as invalid or even imposition of a penalty on the assessee.
If any income of a minor child or spouse is clubbed in the hands of the taxpayer,
then such income must be disclosed in the ITR form. Most people forgot to
disclose such incomes. In those cases, they may receive a notice from the Income
It is very important to mention all the interest income from the savings account
and FDs with bank and post office under Income from other sources and then
claims a deduction under section 80TTA (up to Rs.10000) or 80TTB (up to Rs. 50,000
in case of senior citizen) as applicable.
All income earned during the previous year is required to be reported in the ITR
form, notwithstanding the fact that such income is exempt from tax. There is a
separate schedule for reporting tax-exempt income in the ITR form. Failure to
report all income would result in receipt of a notice from the Income Tax
An individual taxpayer should mention the correct bank account number while
filing ITR, as the refund will be credited automatically by the Income Tax
Department to the account number mentioned in the ITR form. Mentioning the
incorrect account number in the ITR form cannot result in a refund to a person.
Certain personal items such as jewelry, archaeological collections, sculptures,
drawings, paintings, etc. are not included in the definition of personal effects and
are, therefore, treated as capital assets. Any capital gains arising from the sale
of these items should be mentioned in the ITR form.
It is very important to mention all income, notwithstanding the fact that tax has
already been deducted from such income at the time of receipt. It is necessary
to mention the income in the ITR form along with the amount of tax that has
already been deducted in the “Tax paid” sheet in the ITR form.
It is also important to mention the tax credit details as per TDS and TCS
certificates available with the assessee for claiming such tax credit in the
schedule available for reporting TDS and TCS in Income Tax Return Form and
verify with Form 26AS details.
It is very important to claim a deduction based on investment during the years in
Section 80C, 80CCC, and 80CCD. For example, interest in NSC will be first added
to Schedule OS and then it can be claimed for deduction under Section 80C,
however, the deduction is available within the maximum limit of Rs 150000 as
mentioned in Section 80E.
If any deduction is available on a payment basis, the assessee should not forget
to claim these deductions like deduction under Section 80D and 80DDB, etc.
Selection of an appropriate ITR form is important as wrong selection will result
in a defective notice from the Income Tax Department, which needs to be
rectified within a specified period of time. The applicability of the ITR form is
ITR-1 – For a Resident Individual having total income up to Rs 50 lakh in the nature
of Salary, One house property, Other sources, and agriculture income up to Rs
ITR-2 – For individuals and HUF not having income from business or profession.
ITR-3 – For individuals and HUF having income from business or profession.
ITR-4 – For Individuals, HUF, and Firm (other than LLP) being residents having
total income up to Rs 50 lakh in the nature of Salary, One house property, Other
sources, agriculture income up to Rs 5000 and presumptive income u/s 44AD,
44ADA, and 44AE.
All taxes paid during the previous year in the form of TDS, TCS, Advance Tax,
and Self-Assessment Tax should be reconciled with Form 26AS. If the payment
of taxes as mentioned in the ITR Form exceeds the amount indicated in Form
26AS, it will result in either a demand notice or less refund from the Income Tax
After filling the ITR form it should be e-verified at the same time or later i.e.
within 120 days of the filing of ITR. If the taxpayer is not able to e-verify the
ITR form, then the signed copy of ITR-V should be sent to CPC, Bangalore within
120 days of the filing of ITR.