In a hurry to file income tax return (ITR) we all make some common mistakes. While few errors can be a result of ignorance others can be due to sheer carelessness. To make the tax filing process easier for you, here are a few points you should keep in mind before filing ITR this year. Also Read - ITR Forms Being Revised For Benefits of Timeline Extension: Finance Ministry
1) Late fee for filing ITR after due date
Till last year there was no fee for filing late return. But from this year onwards, under section 234F late fee of Rs 5000 is charged, in case the return is filed after July 31st, (but on or before 31/12/2018 2). The late fee increases to Rs 10,000, in case the return is filed after December 2018. For people having total income less than Rs 5 lakh the late fee is limited to Rs 1000. Also Read - Amid Coronavirus Lockdown, All Pending ITR up to Rs 5 Lakh to be Released Immediately: Finance Ministry
2) Mention your GST Identification Number
From this year onwards you also need to give your GST identification number (GSTIN) along with turnover while filing ITR-3. ITR-3 applies to those who earn business income, including income from salary, house property and capital gains. With the inclusion of business turnover in the ITR form, it is believed that people will find it difficult to evade taxes. Sudhir Kaushik, Co-Founder & CFO, TaxSpanner.com, says, “Any person making false statement shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.” Also Read - I-T Dept Launches e-calculator to Compare Due Tax Under New, Old Regime
3) Fill your 12 digit Aadhaar Number
Though the Central Board of Direct Taxes (CBDT) has extended the deadline for linking of PAN and Aadhaar, you still need to provide the Aadhaar number in your ITR. Sudhir Kaushik, Co-Founder & CFO, TaxSpanner.com, says, “In case, Aadhaar Number is not allotted but has been applied for, please furnish 28 digits Aadhaar Enrolment Id. Filling of this field is mandatory with effect from 01.07.2017.” Moreover, it is advisable to go with the name printed on your PAN card while filing ITR, in order to avoid hassles at the later stage.
5) Break-up of salary income
Under the new income tax return forms, you need to give the detailed break-up of your salary such as allowances not exempt, perquisites and profit in lieu of salary, as given in Form 16 issued by the employer.
4) Mandatory to declare all bank accounts in ITR
You need to provide details of all the savings and current accounts held by you at any time during the previous year. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. Also, remember that interest from a fixed deposit is not eligible for any deduction. The 10,000 deduction limit is only for interest from the savings account.