Things to Check Before Filing Your Tax Returns
Filing Income Tax Returns can be a hefty task, especially for the first timers. Filing your tax returns when you are entitled to do so, or paying taxes when you have any taxes due, is necessary to avoid any Income Tax complications later on.
Often people find themselves in situations where the deadline for filing income tax returns is less. With only a few days left to find income tax returns, there is generally a lot of confusion amongst the masses before the due date.
Here are some of the few important things to keep in mind and check before filing an Income Tax Return:
- Check if all the required documents are handy
Getting all the required documents together is the most important thing before filing an ITR. Documents obviously vary on the amount and type of income you have. Therefore, it is important to check what documents are required to file an ITR and whether you have all the documents with you or not. You wouldn’t want to get into trouble at the last minute, would you?
The required documents include Form 16 from your employer, statement of interest earned on savings bank account and fixed deposits, TDS certificates, Proof of various deductions, statement of Interest paid for home loan etc.
- Get TDS Certificate or Form 16 from the previous employer if you have switched jobs
Most people find it difficult to deal with two Form 16 while filing a tax return if they have switched jobs in one financial year. One certificate and Form 16 is from the current employer and the other is from the previous employer. However, both are mandatory. Form 16 is actually the summary of the total salary of the employee, and the taxes deducted in the previous financial year. The tax computation is made considering every Form 16 from all the employers.
- Pay all the dues before filing ITR
All your dues should be paid before filing the ITR, and the taxes paid must also reflect in the Form 26AS. Once you know the total amount of tax you have to pay, you subtract the TDS and pay the remaining amount through online banking, or visiting bank branches, or through challans. Reflecting of the taxes paid in Form 26AS is also important. However, taxes should be paid much before the due-date of ITR to make it reflect in Form 26AS.
- ITR form should be correct
If you do not file your return with the correct form which is applicable to your income type, your ITR will be treated as a defective return. If you apply through a wrong ITR form, you may get a notice under section 139(9) from the authorities, requesting that you file ITR again inside the stipulated time.
In case you neglect to file amended ITR in the given time, at that point, it will be dealt with as though you never filed the ITR.
- Exempted Income and Taxes should be mentioned in ITR
Interest earned from PPF account, tax-free bonds, etc and all the other income exempted from the tax must be included in your ITR under the ‘Exempt Income’ Section.
It is not to forget that the financial budget of 2017 has made it necessary for the taxpayers to file ITR if their total income plus exempted gains exceed the minimum redemption limit of Rs 2.5 lakhs.
- Verifying the ITR properly
Your ITR would not be considered a valid document if it is not verified by you. The Income Tax department has now made the verification process easy for the taxpayers by introducing six ways to verify your ITR using Aadhar card OTP, net-banking, etc.