Do’s and Don’ts of Income Tax Return filing.


(Last Updated On: August 28, 2019)

Due Date Extended !!
Due date for Income Tax Return filing has been extended from 31st July 2019 to 31st August 2019 by the Income Tax Department



Filing Income Tax Return for the first time is a moment of both pride & fear. To avoid mistakes in filing, we have compiled a lists of Do’s & Don’ts for the first time filers, to follow at the time of tax filing-

Choose correct Income Tax Form

Choosing the wrong IT Return form: This mistake is common among first time filers. Choosing the appropriate IT Return form is of primary importance to any taxpayer. In case a wrong IT Return form is filed, then defective return notice is issued by Income Tax department and the return is deemed to be not filed in some cases.

Our Tax Experts at Tax2win select the appropriate ITR form for you depending upon your sources of income etc. Visit our website to learn more.

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Verify the ITR after E-filing:

No submission of ITR-V: After filing of ITR, sending the signed copy of ITR-V by post within 120 days of e-filing is mandatory and return is deemed to be not filed in case of failure to adhere to this instruction. The ITR-V form is required to be sent to Centralized Processing Center, Income Tax Department, Bengaluru 560500, by Ordinary or Speed Post only. Remember Verification is the key to a successful Filing of Return.


Report all your Incomes

Not reporting of bank’s interest income: It is mandatory to report the interest income received from savings or fixed deposit accounts. Bank deducts TDS (Tax Deducted at Source) at the rate of 10%, while the assessee earns interest of more than Rs. 10,000. Hence it becomes imperative that you declare the income from interest in order to avoid notices from the IT Department.

Not reporting exempt income: Many people make the mistake of not reporting income exempt from taxes. It is now mandatory to declare income exempt from Income Tax too, such as PPF Interest, dividends and Long Term Capital Gains from listed securities in your tax return.



Report correct details

Providing incorrect personal details: It is imperative that you fill in correct details while filing your IT Return including the mail id where all correspondence takes place between the Income Tax Department and you.


Pay all taxes in time

Failing to pay Advance Tax/Self-Assessment Tax: It is mandatory for individual taxpayers to estimate their tax liability and pay advance tax/self-assessment tax before the end of the Financial Year in order to avoid penalty @ 1% per month starting from the end of the relevant quarter. This is required only if your tax liability exceeds Rs. 10,000/- in the Financial Year.


Get Organized

The first thing that you should keep in mind while starting the process of Income Tax Return filing is that “Clean and Neat makes Filing easy”.

So start getting organized by readying yourself for the Tax Season. If you are an employee and your employer deducts TDS from your salary, the Form 16 that the employer issues to you can be a good starting point since it lists down all details of tax that you have already paid to the Government in the form of Tax Deducted at Source (TDS), your salary components and your Tax Liability.

In case you have not received your Form 16 from your employer, you can look for Form 26AS which lists down the TDS that has been deducted from your salary and been deposited to the Government’s account.

Also you can keep the following documents handy:

  • Pay slips
  • CTC Breakup (To claim eligibility under various tax free income components like HRA, LTA etc)
  • TDS Certificates from Bank
  • Tax Saving Investment Proofs (To avail deduction under various sections)
  • Home and Education Loan & Certificates (if any, in order to avail deductions under Section 80, 80E and 24)
  • Bank Statements (required for interest income, gifts received in the relevant Financial Year and dividend income if any)
  • HRA Receipts, LTA Expenses and Reimbursement slips


Decide how to file:

You can file using the Income Tax Department’s public portal online or you can also get our Tax Experts to file it for you.

To have a look at our affordable services tailor made for you, visit: https://tax2win.in

File-it-yourself( helps in bypassing all complexity for the first timer with our simplest software):

Get CA Assistance (Our expert CAs assist you by filing the return for you in the most convenient hassle-free manner):


Avail Tax Deductions

Maximize your savings and tax benefits by availing maximum number of deductions. For learning more about deductions and how you can use them, visit our blog: (Link of Deductions Blog)

You can also avail the expertise of our Tax Experts to help you secure maximum deductions:


Keep track of TDS. Don’t pay tax twice!

As we discussed in our earlier blog posts, TDS helps the government in obtaining a steady source of income throughout the year. Your employer deducts TDS from your salary on the basis of information available with him. Hence it is very important to submit your investment proofs, rent receipts etc in order to avail the benefit of deductions. The Form 16 that you receive has details of all Tax deducted at source and your taxable income after allowances and Section 80C deductions.

If you are a self-employed person and have tax liability of more than Rs. 10,000/-, you need to pay Advance Tax to the government every quarter.

The deadlines to this purpose are as below:

Due Date

Advance Tax Payable

On or before 15th June

Not less than 15% of advance tax

On or before 15th September

Not less than 45% of advance tax

On or before 15th December

Not less than 75% of advance tax

On or before 15th March

Not less than 100% of advance tax


For calculation of Advance Tax:

Add all payments received and expected till March 31st to get an estimate of your taxable income.

Deduct expenses directly related to the business and investments made under Section 80C to avail of deductions.

Mismatch between ITR data and Income Tax Department Database: In case of mismatch between ITR Data and information contained in the Income Tax Department’s database, notices can be sent out to the concerned individuals. Hence verification of details filled in ITR form is of utmost importance.


Don’t procrastinate and Don’t hurry!

Either of the above two situations are detrimental to a first time filer. Don’t get intimidated by the process of Tax filing and proceed with a cool mind. Remember, the IT Department is your friend.

Did you know, Tax2win is an authorized ERI with the Income Tax Department, Government of India. Which means you can trust us to be your preferred tax partner!

Also, don’t be in a hurry. Ample time is given for declarations and refunds.


And last but not the least, keep the following handy:

  • PAN Number
  • Bank Account details
  • Form 16
  • Income tax e-filing password
  • Investment Details
  • Home Loan details
  • Other income details
  • Address

Further to these pointer, there are some other details which you should be aware of if you are engaged in some particular professions like Insurance and you have to file ITR 3. In such a case you should keep your book of accounts updated and should tally it with your bank statement before proceeding to file ITR3. Also, if you are engaged in your own business/profession, then you have to pay advance tax/self-assessment tax as per an estimate of your tax liability made before the end of the Financial Year.

You can take the help of our Tax Experts in deciding the right ITR form for yourself and filing taxes. To avail their assistance, visit our website today: 

 

Happy Tax Filing to you from Tax2win!!

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.