This document outlines 8 key norms for filing income tax returns electronically in India. It discusses who is eligible to file, verifying tax deducted at source details, choosing the correct form, reporting interest and other income, disclosing cash deposits after demonetization and foreign assets/income, linking Aadhaar, and filing before the deadline. The deadline for filing returns is July 31 each year, and filing late will result in penalties. It is important to verify all return details are accurate.
2. Income Tax E-Filing
The deadline for filing income tax returns is a couple of
days away and you must be scrambling with paperwork
and filling out forms to file it.
By filing the return, you declare the income you have
earned in a financial year, the deductions you have
claimed, and taxes you have paid.
E-filing can be undertaken by any individual.
3. 8 Norms About Income Tax E-Filing
Eligibility To File The Return
Verify TDS Details in Form 26AS
Choosing The Right Form
Furnish Interest and Other Income Details
Disclose Foreign Assets And Income
Declare Cash Deposits After Demonetisation
Link Aadhaar
File before deadline and verify return
4. Eligibility To File The Return
There is a lot of ambiguity around this.
While some avoid filing the return thinking that a TDS
deduction is sufficient to ensure tax compliance, some think
it’s unnecessary because their income is not taxable.
The rule is that one has to file the return if the gross taxable
income is above the basic exemption limit.
5. Verify TDS Details in Form 26AS
Form 26AS is an annual tax statement that gives you the
entire details of the tax deducted on your behalf and
credited to your PAN.
As tax authorities consider this document to be a valid
proof of the taxes paid by you, you must take a look at
the form to ensure there are no discrepancies and get it
rectified.
6. Choosing The Right Form
If you earn an income as a partner in a firm or earn from
foreign assets or get a salary or pension or capital gains or
have an agricultural income of over Rs. 5000, use ITR 2.
ITR3 is for an individual or HUF earning income from
proprietary business or profession or having income from
house property, salary, pension, and other sources.
7. Furnish Interest and Other Income Details
Often the interest earned from tax-saving fixed deposits
gets underreported due to the misconception of interest
being free from tax.
While the deposits help save tax under Section 80C, the
interest is completely taxable. TDS applies to interest
income of more than Rs. 10,000 earned on deposits in a
financial year.
8. Declare Cash Deposits After Demonetisation
If you have been abroad you have to disclose details of
foreign bank account holding’s status, account opening
date, interest accrued, etc.
Any misreporting might invite trouble later.
9. Link Aadhaar
If you haven’t linked your Aadhaar with PAN yet, it’s
time you did it. The government has made it mandatory
for taxpayers to link the two documents before filing tax
returns.
The biometric identification enabled by Aadhaar would
help tax authorities to track tax evasion by holding
multiple PAN cards.
10. File Before Deadline And Verify Return
The deadline for filing returns is July 31 every year.
Delayed filing would attract a penalty from the next
financial year onwards.
Also, the window for filing previous year’s return has
been reduced to two years only.
11. File Before Deadline And Verify Return
The deadline for filing returns is July 31 every year.
Delayed filing would attract a penalty from the next
financial year onwards.
Also, the window for filing previous year’s return has
been reduced to two years only.
12. Contact Us
Letzbank,
Plot No. 4,1-98/8/9/A, Image Gardens Rd,
Madhapur,
500081 Hyderabad, Telangana,
India.
support@letzbank.com
040-48586878