Things to keep in mind while filing / preparing to file your income tax returns.
Anyone with an annual income of over1 Rs. 2.5 lakh needs to file I-T returns whether the income is taxable or not. The Department tracks expenses, asset purchases, investments and foreign travel through your PAN card and Aadhaar number so make sure you disclose income correctly to substantiate the source of funds used for such expenses / Investments.
Remember that all your sources of income must be filed as part of your I-T returns. Even if your dividends are tax-free, it is still essential to disclose all these details in your I-T returns. Even if your savings bank account interest income is below the taxable limit of Rs. 10,000, you must declare the same in your income tax returns.
If you have made losses on shares or equity-oriented mutual funds, you need to show the loss when you file returns. If you do not disclose the loss in your I-T returns and carry forward the same, you lose the benefit of setting off the losses against other gains. You should also make sure to file your return within the due date to carry forward any losses.
After filing your returns online, the process is still not complete. You must sign a copy of the acknowledgement and post it to CPC, Bangalore or e-verify online. If not done, your return can be deemed to be invalid and not filed.
While refunds below Rs. 50,000 are directly credited to your bank account via RTGS, refunds above Rs. 50,000 are only paid out by cheque. Hence if your refund is above Rs. 50,000 ensure that your address is updated in the I-T records.
Remember that effective July 1, 2017, an Aadhaar card is a prerequisite for filing income tax returns.
Cross check your TDS with your 26AS before filing your returns to make sure you have not missed out anything and are claiming the TDS Correctly. In case of a mismatch, you could receive a demand notice for payment of taxes.
