Comment Synopsis There have been several changes in the tax filing rules. Here are 10 commandments for those who will be filing their returns in the coming weeks. Getty Images Filing tax returns is very easy, yet many taxpayers make mistakes.
Follow these cardinal rules so that your return is flawless. Team ET Wealth All of us believe that we are paying a lot of tax. Well, the time has come to record it as well. By filing your income tax return, you declare how much income you earned during the year, the deductions you claimed and the tax you paid. The equation is fairly simple, yet many taxpayers mess up their ITR—either out of greed, ignorance of tax rules, or just lack of time.
Take for instance the interest that nearly every taxpayer earns from bank FDs, recurring deposits and NSCs. This interest is fully taxable, but is rarely mentioned in the tax returns.
Some of these mistakes are not very serious offences and on binary signals taxpayer will get away white scheme of earnings verified a mere additional tax demand.
But some other errors, such as not mentioning cash deposits after demonetisation or foreign assets and income, can land the taxpayer in serious trouble.
How can taxpayers avoid these mistakes? There have been several changes in the tax filing rules in the past one year. Our canons of prudent tax filing take note of these changes and accordingly guide taxpayers so that their returns are flawless.
How to download and send ITR-V to income tax department
The tax filing deadline is still a month away. But our advice to you is to get cracking on your return right away. Who needs to file tax returns?
If the gross taxable income after exemptions, but before deductions, exceeds the basic limit, or if a tax refund has to be claimed, you need to file your tax return. Taxpayers hold many misconceptions about this. Others believe that if tax has been deducted at source, their tax compliance is taken care of.
The rules say that an individual has to file his tax return if the gross taxable income is above the basic exemption limit.
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This limit is Rs 2. As the table shows, Taxpayer A does not have any tax liability because deductions will reduce his tax to zero. But he still has to file his tax return because his gross total income is above Rs 2. Similarly, the very senior citizen is not obliged to file his return because his income is below the Rs 5 lakh exemption limit. But he will need to file his return if he wants to claim refund of the TDS on his fixed deposits and bonds. While the tax deducted by your employer will reflect in the Form 16, check out your Form 26AS online to make sure that all other taxes advance tax, TDS on interest and other incomes have also been credited to your PAN.
If there is a discrepancy, notify the deductor and get it rectified. The tax authorities consider this document as the sole proof of taxes paid by you. A mismatch will surely lead to a notice.
A few clicks will take you to Form 26AS.
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Details get updated after a lag of a few days. So if you have just paid a self-assessment taxwait for a few days to find the updated details in your form.
Usually, details of tax deducted by companies and other deductors during the previous financial year are updated by mid June. Most tend to use the ITR 1 because it is simple to fill. The rules relating to forms have changed this year. Here is a guide to the forms that individuals have to use: Use it if you have You are carrying forward losses Your total income exceeds Rs 50 lakh You hold foreign assets Agricultural income exceeds Rs 5, You have taxable capital gains You have income from business or profession You earn income from more than one house property ITR 2 Use it if you have You have income from business or profession ITR 3 Use it if you Are an individual or HUF with income from proprietary business or profession.
This information can be matched with the ITR. In case there is white scheme of earnings verified mismatch in the reporting, the individual can expect a notice. Apart from the post-demonetisation deposits, the tax department has other details too.
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Banks are supposed to report if an individual makes cash deposits of more than Rs 10 lakh in a financial year in one or more accounts or opens fixed deposits of over Rs 10 lakh. The tax department has introduced new rules to plug this leak.
Agrawal Senior Partner, Mahesh K. If banks share the names and PANs of investors, lakhs of individuals could end up in the tax net. Investors used to split their deposits across branches to avoid TDS. But the Budget changed the rules.
TDS now applies if the combined income from deposits in all branches of a bank exceeds the threshold. After the Budget, TDS also applies to recurring deposits if the interest during a financial year exceeds White scheme of earnings verified 10, As banks start sharing data, there could be TDS if the interest from deposits made across other banks exceeds the threshold.
If the individual does not report the income on which tax has been deducted, the department will send him a notice. Individuals who have the Aadhaar must mention it in their tax returns.
Only those who do not have an Aadhaar are exempt from the rule. If you have the Aadhaar, it is also necessary to link it white scheme of earnings verified the PAN if you are filing your tax return. This is very easy and takes barely five minutes. Experts say the Aadhaar will soon become a must for all your financial needs.
Tax is deducted on the assumption that income for the remaining months is the only income for the year. But this mistake is discovered when he files his tax return.
At that time, the incomes from the two employers are added and the deduction and exemption are halved. This is a misconception. If some tax has been deducted on the income from the first employer, it will be reflected in Form 26AS.
The smart thing to white scheme of earnings verified is to inform the new employer about the income from white scheme of earnings verified previous white scheme of earnings verified so that the tax liability is correctly calculated. Any misreporting of foreign assets immediately puts you in the dock. Interestingly, this clause applies to foreigners posted in India as well. But some people have found a way around this rule by limiting their stay in the country to less than three years.
General Requirements for Issuing Residence Permits The authorities may only grant you a residence title if you meet the following requirements: Adequate means of subsistence You have to have a fixed and regular personal income enabling you to cover your living costs without resorting to welfare aid from local authorities. At the time of application the regular monthly income must be equal to the equalisation supplement reference rate Ausgleichszulagenrichtsatz of the General Social Insurance Act Allgemeines Sozialversicherungsgesetz - ASVG. Health Insurance Coverage For your stay in Austria, you must have health insurance coverage which provides benefits in Austria and covers all risks.
Taxpayers in that income bracket were also required to mention details of the physical assets they owned. Now, the tax department wants them to also give details of their financial assets. One will have to declare any land or building under immovable assets. If you miss any, it amounts to concealment of information. Liabilities will include any outstanding loans you have.
Experts say taxpayers will find it challenging to value their assets themselves. However, the assets have to be valued at cost. The cost value of the assets mentioned should be accurate. File the return before the 31 July deadline. Till last year, there was no penalty for filing delayed returns.
One could even file returns of the previous two years without a hitch if all his taxes were paid. But the rules have now been changed. So, the returns for the financial year assessment year could be filed till 31 March However, now, belated returns may be filed before the end of the relevant assessment year.
This reduces the time window by a year. It is applicable from the assessment year