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TAX HELPLINE

Is your income tax return complete?
Here are some Caution points for Error Free Return Filing

The financial year
has ended and every individual is worried about filing his tax
return before the
due date.The difficulty is to be sure that the
return you are filing is correct or not to avoid
future hassles of
assessments.
As we are again at the tax filing time of the year, some caution
points would ensure an error free tax return filing:

1) Correct Form of Return

The first step is to pick up the correct return form, which is
prescribed by the Central Board of Taxes (CBDT) every year. The
Income Tax Return (ITR) forms by CBDT depends on the various streams of income. Correct form
ensures that the complete details are filed.

2) Correct address and correct

Bank Account number
For timely correspondence with
the income tax authorities as
also for timely delivery of refunds claimed in the return, it is very important to mention the correct address and bank
account details along with the MICR code in the return form.

3) Permanent Account Number (PAN)

PAN is an important
identification number by way of which the income tax authorities identify a particular
taxpayer and records his income, taxes deducted on his
behalf and the taxes paid by him. Quoting of incorrect PAN
may cause hardship to both taxpayers as well as to income tax authorities. So double check your PAN.

4) Staying updated with the current Tax Law

Before you start preparing your return, you should stay updated with the current tax law. The
deductions and exemptions available as per the law or the
provisions of clubbing of income. This ensures that the
income disclosed in the return is complete and the benefit available under the law is considered. Eg. Deduction of INR
10,000 for saving account interest or no deduction available in this assessment year
for investment in infrastructure bonds.

5) Checking your Bank Account statements

One should always review the bank account statements.By
doing this you always get an idea of the various streams of
income which you need to disclose in your return. This clarifies the type of return forms you need to use for filing your
return.

Further the error of not including a particular income is
avoided, e.g. we all earn interest income on our savings bank
accounts and at times due to the insignificant amount; we forget to include the interest income in
our return of income. A common slip up that happens is non-
disclosure of income exempted from tax, such as dividend
income from mutual funds or capital gain on securities.

6) Overseas income

Nowadays, few of us have started investing in the overseas markets or receive some income abroad. The same should be
included in the return as well.
Moreover, one should not forget applicable treaty benefits
available under the law to avoid double taxation.

7) Deduction under Chapter VI

We all make tax saving investments throughout the year
but sometimes even forget to include the same in the return.
To avoid this one should maintain the list of the tax saving investments made.