How to file your income tax return correctly

Every individual having has to file there annual IT Retrun with the IT department if there income does not exceed the basic limit as prescribed by IT department for not filling a ITR.

You can file your ITR voluntarily even though you are not liable to do so according to IT act. You can file your ITR either by filling it electronically or in paper format. 

Here are few tips to ensure an error free tax filling process;

Pick your Return Form Correctly

Depending on your stream of income, IT department has prescribed 7 ITR Forms to be filled with IT department. You have to choose the correct Form before filling your ITR. To know more about ITR form read this article

Disclose your Income Correctly

Efilling your Income tax returnThere are certain incomes like agricultural which are exempt from tax but these have specific tax treatment and you need to disclose it while filling your IT return with the department.

Before filling your ITR form, list down the types of income like salary, house property, mutual fund, interest received from bank deposits. Make sure that all these taken into account while filling your IT return.

Annual Information Return

If you have done any high value transactions like transactions through credit card for an amount of Rs. 2, 00,000 then such information need to be taken into account while filling your IT (i.e. the income that you are showing in your ITR should match these high value transactions) For this you have to start noting down your all high value transactions when it occurs.

Income from a Minor

Most of the time it happens that, your son or daughter who is a minor gets certain income and you have not included that while filling your IT return. Please ensure that, if your minor daughter or son has some income like interest from there saving bank account then it has to be included in your ITR even though the interest amount is very less or not significant. Certain income which the minor has incurred due to her specific talent or due to his profession may not be included to your ITR. So make sure that you have taken these things into consideration before filling your ITR.

Provide your Correct Bank Account Details

You need to specify correct bank account number and MICR code of your bank account in IT return form. This will be taken in to account if in case you need to get refund from IT department and if you forgot your password and want to reset it

File your ITR before the due date of filling

Due date of filling your IT return has been specified by IT department for every year and to avail some benefit like revising your return in case of mistake, you need to file your ITR before time. Not filling IT return before due date may lead to penalty interest and fine.

Submit ITR V In time

If you have filled your IT return without digital signature then, you must send your acknowledgement form (ITR V) before 120 days from the date of filling to IT department CPC, Bangalore. If such ITR-V not received by IT department before such time then your ITR may be treated as invalid.

To avoid such problem you need to make sure that the ITR-V has reached IT department before time and in the manner prescribed.

If you have filled your IT return with digital signature then the acknowledgement generated will be the acknowledgement and it’s not required to be sent to CPC, Bangalore.

Every one who is filling income tax return with the government has to ensure above points while filling his return.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.