While you get ready to prepare for filing your returns, a checklist needs to be prepared that will ensure that the filing of returns is done with utmost prudence.
1. You are responsible for filing your returns:
Paying tax is just not enough. Many individuals think that the tax is paid and so there is no liability for them to file the returns. For FY 2016-17 it is must for everyone to file the returns if the income exceeds 2.5 lakhs of basic slab for individuals and 3 lakhs in case of senior citizens.
2. Check accuracy of details:
Ensure that the details that you present are verified thoroughly. Personal details, interest incomes, PAN detail and Form AS26 should be checked for the data accuracy. Any discrepant data may reject your application.
3. Include all the realized and accrued income:
Do not miss out to report the income from sources like Fixed Deposits, PPF, and income from the investments done for other family members. This is to give a clear picture of the total tax liability. Declaration of the income should be done even if the income is exempted from the income tax.
4. Claiming deductions under relevant sections and limits:
For a salaried individual, it is important to understand that not all that you see in your salary slip is deductible from tax. Contribution to EPF from employer is not to be included in Section 80C, HRA received is not exactly that can be claimed, limits for transport and medical allowance is pre-defined, LTA can be claimed for one round journey only and deduction for donation is subjected to exemption up to 50% or 100% depending on the nature of registered entity.
5. Declaration of bank accounts and property details:
All the bank account and properties that you held during any time in the financial year that you are paying taxes for needs to be declared while filing the returns. These details are anyways linked to your PAN and supports as a proof of any income accrued in the account or during closure or sale of the same.
6. Get your returns verified:
The process of tax filing gets completed only at the verification of the filing. The same can be done online through E-verification process or by sending the ITR acknowledgment.
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