Now only 3 days are left for filing income tax return i.e. ITR for the financial year 2025-26. The last date for filing returns for general taxpayers is July 31, 2026. Whereas for some people of business class (ITR-3 and 4) it is 31st August. If you miss the deadline by July 31, you can file a ‘belated return’ by paying the penalty by December 31. However, for this you will have to pay late fees. ITR is the official record of your entire income, investments and financial transactions. Income Tax Department keeps an eye on the information given by you. Income Tax Department collects information about bank accounts, TDS, share-mutual funds, property and foreign travel through AI, data analytics and various portals and matches it with the information given in ITR. In such a situation, even a small mistake can lead to tax demand, interest and penalty. Here, tax expert and CA Anand Jain, Indore is telling you which 10 important things should be kept in mind while filling ITR… 1. Do not rely only on Form 16. Many salaried people think that whatever is there in Form 16 is enough. But Form 16 only gives information about salary and TDS deducted on it. If you have received FD, RD, savings account interest, dividend, rent, freelance income, share-mutual fund profit or foreign income, then it is important to include it in ITR. Hiding these may result in paying additional tax and interest later. 2. It is very important to choose the right ITR form. If you choose the wrong form, the return can be considered defective, that is, it will be assumed that you did not file the return at all. ITR-1: For salary, pension and simple interest income earners. ITR-2: For those with capital gains, more than one house, foreign assets or income. ITR-3: For those doing business, freelance, FO or trading. ITR-4: For small businessmen and professionals. 3. Must check AIS, TIS and Form 26AS Before filing the return, match Form 16, Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). If the income shown in these is different from your return, the department may seek clarification. If you see incorrect information, file a complaint for correction on the portal. 4. If you change jobs, add the salaries of both the companies. If you have changed jobs in the financial year, then file the return by adding the salaries received from both the old and new employers. If you do not do this, you may have to pay tax later due to less TDS being deducted. 5. Fill the bank account details correctly. Give information about all the bank accounts. Enter the correct IFSC code and account number of the account where the refund is coming. Mistakes may delay refunds. 6. Do not make the mistake of hiding interest income. Many people think that if TDS is not deducted, the income is not taxable. This is wrong. The department gets to know the interest of FD, RD, savings account and bonds from AIS and bank data. Leaving them can be costly. 7. Give complete details of sale of shares, mutual funds and property. Since demat account is linked to PAN, all transactions come to the department. Declare both profit and loss on sale of shares, redemption of MF or sale of property. Showing losses can lead to tax savings in future. 8. Claim deductions with documents Take deductions like 80C, NPS, 80D (Health Insurance) and interest on home loan only on the right investments. Keep the documents safe, the department can ask for proof anytime. 9. Full disclosure of foreign investments and income: Those who invest in foreign shares, ETFs, bank accounts or platforms are required to give details. Especially for Residency and Ordinary Residency tax payers, it may be necessary to provide information about foreign assets. 10. After filing the return, do e-verification, submitting the return is not enough. It is necessary to do e-verification through Aadhaar OTP, Net Banking, Demat Account or Digital Signature. If not done on time, the return may be invalid. Late fees up to Rs 5,000 will have to be paid after July 31. Taxpayers filing ITR after July 31 will have to pay late fees. If the annual income of an individual taxpayer is more than Rs 5 lakh, then he will have to pay a late fee of Rs 5000. If the annual income of the taxpayer is less than Rs 5 lakh, then he will have to pay Rs 1,000 as late fee.
Source link
[ad_3]
Last 3 days of filing ITR: Late fee up to ₹ 5000 will be charged if not filed by 31st July, keep these 10 things in mind
