5 Things A Taxpayer Should Not Miss

By | March 20, 2018

You must stay updated and be aware of vital points to file your ITR without any delay and difficulty.

5 Things A Taxpayer Should Not Miss

While handling tax matters, it is important to stay alert to avoid any kind of mistakes. Missing details when filing income tax returns (ITR) can result in scrutiny and adverse action by the I-T department. You would certainly not want to land in a soup because you missed on a small but important information. For example, March 31, 2018, would be the last date to file tax for FY 2015-16 as well as FY 16-17, but if you are not aware of this important piece of information, then you can easily miss the due deadline and may land up in trouble.

It is thus important to stay updated and be aware of vital points while filing ITR and remain hassle-free.

Don’t Forget To Include Interest Income

People often miss to include the interest earned from Savings Bank Account, Fixed Deposit, and interest earned from loans given to friends or relatives etc., while filing their ITR. Such income can make a substantial amount. Interest up to Rs 10,000 earned from the savings account is allowed as a deduction under Section 80 (TTA), but you need to mention such income in the ITR.  So, you must not miss all your interest income at the time of filing the ITR.

Mention All Bank Accounts

It is mandatory to report all your bank accounts in the ITR whether it is a current account or the savings account. You can skip the dormant account which is not in operation continuously for 3 years and if you do not have any amount available in such account. While mentioning the bank detail, you should provide the account number, IFSC code, name of the bank and account type (current or saving) in the ITR. Under ITR for the FY 2016-17, it is mandatory to mention the amount deposited during the demonetisation period, i.e. between Nov 9, 2016, to Dec 30, 2016.

Exhausting Tax Deduction Benefits

Before the financial year comes to an end, you must ascertain what more you can do to save your tax outgo. For example, there is a limit of Rs 1.5 lakh to claim deduction u/s 80 (C), but if you have invested only 1 lakh before the end of the financial year, then you can put more money in the eligible tax saving investment instruments and reduce the tax liability accordingly. If your tax liability is already below the taxable limit, then you may skip exhausting the tax deduction limit and focus on other financial goals.

Last Date To File Belated Return

As mentioned earlier, March 31, 2018, will be the last date to file a belated return for FY 2015-16 and FY 2016-17. If you fail to file the return by this deadline, then you may face penalty or prosecution action by the I-T department. You must ensure that you do not miss this crucial deadline.

Mention Your Foreign Income

Though you live in India, you may still open a bank account in a foreign bank. Similarly, you may earn income from investment abroad. All such overseas income must be reported in the foreign asset schedule at the time of filing the ITR. Even if you stand as a trustee in a foreign-based trust or have immovable property outside India, then you need to mention this information in the ITR. If you miss any material information related to foreign belongings or transactions, which needs to be part of ITR, then you can be penalised for such mistake.

Apart from the points mentioned above, you should ensure that ITR verification is done within the permissible time limit to avoid penalties, and to get your TDS refund (if any) on time. Do not miss to re-verify your filing detail with the form 26 AS to avoid mismatch in income already been informed to the I-T department.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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