To avoid penalties, it is important to know these 5 things about filing your income tax return (ITR) before the deadline:
1. Assistance: The income tax department provides a 24/7 helpdesk to assist taxpayers in filing their returns. You can contact them through phone, live chat, or social media.
2. Zero tax liability: Even if you have no tax liability, it is still necessary to file your return. It serves as a valuable document to prove your income, support visa applications, and claim your Tax Deducted at Source (TDS).
3. Seek expert guidance: To ensure an error-free return, it is advisable to seek guidance from an expert. However, if you do make a mistake, such as under-reporting your income, you can file a revised return.
4. Consequences of under-reporting: Under-reporting your income, even unintentionally, can lead to serious consequences. The income tax department has access to your TDS deductions, and a significant difference may trigger an investigation.
5. Penalties and interest: Missing the filing deadline can result in penalties and interest. The penalty for late filing can be up to Rs 5,000, and a late filing fee of 0.5 percent of the tax due will be charged for each month the return remains outstanding, with a maximum of five percent.
Additionally, before filing your tax returns on the income tax department’s website (incometax.gov.in), make sure you have the following documents:
– Form 16/16A: This form, provided by employers, includes details of salaries, tax deductions, and TDS for salaried individuals. It also reports TDS on non-salary income such as interest and commissions.
– PAN card: Your PAN card, a unique identification number, is required for all financial transactions in India. You need to enter your PAN number in your ITR.
– Aadhaar card: Your Aadhaar card is another essential document for filing your ITR. It helps verify your identity and address.
– Bank statement: Your bank statement provides a record of all your bank transactions. It is needed to claim deductions for expenses like loan interest, investments, and medical expenses.
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