With just two days to go for the income tax returns filing deadline, amidst the last minute hustle, chances of mistakes are high. Either the website won't work because there are many who have joined in the last minute rush, or you don't remember your passwords, or you end up filing the wrong return, etc., because of the commotion. So here are some quick tips to help you avoid the errors.
1. Gather your documents: First thing, get all the required documents together, like your Form 16 or business income details, your Form 26 AS (You'll get this from the e-filing website), Section 80C investment proofs, interest statements from your banks, statements of interest and principal paid on home loans, education loans, etc., statements of house rent paid where HRA isn't received, medical insurance premiums paid, documents detailing various expenditure that can be claimed like medical bills, etc.
2. Pay Self Assessment Tax, if any: Before filing the ITR, check if you haven't underpaid your taxes. Calculate the total tax amount that you ought to pay, the possible sources of omission are rental incomes, interest incomes, etc. A common case of underpayment of taxes is interest paid on savings or fixed deposits. The banks deduct a TDS @ 10% for any interest income paid above Rs 10,000. Now the possible disparities are:
- You fall under a higher tax bracket, but TDS is deducted @ 10%.
- You have more than one bank accounts and your total interest income exceeds Rs 10,000, but one or more banks haven't deducted TDS because interest paid by them was less than Rs 10,000.
Assess your total tax liability and deduct the total taxes paid by you (Refer Form 26AS for total taxes paid) and pay the difference as Self Assessment Tax, either through net banking or your bank branch. Add the challan number to the set of documents you gathered in Step 1.
3. Start Filing: Once all the groundwork is done, the next step is to get into action. Follow the following tips to avoid errors.
1. Select the correct ITR Form.
2. Check the general information section, make sure all your personal details like mobile number, address, employer category etc. are correct. If not, make the required changes.
3. Enter all your incomes, including interest income, rental income, business income, etc. and fill in the corresponding schedules.
4. Fill in all the deductions, your investments, health insurance premiums, interest paid on loans, donations paid, etc. One section that people often omit is Section 80TTA. As per this section, interest income of up-to Rs 10,000 from savings account is exempt from tax. So, if your interest income is up to Rs 10,000 enter that amount or if it is greater than Rs 10,000 then too you can claim Rs 10,000 as deduction under this section.
5. Fill in the details of the self assessment tax, from step 2
4. Review: Before submitting, review the ITR thoroughly, so that you can fix mistakes, if any.
5. Submit before 31st July: Finally, click the submit button, and remember to do it before the deadline.