So after paying your income tax on time and arranging all the things in place still doesn’t make sense, this thing always clings to the taxpayers who are new to the system and now the time is getting thinner day by day as the last day to file your income tax is July 31, 2022, as same goes with tax returns of the assessment year 2022-23.
The significant point to be noted down is that whose income in the previous year without claiming the exemption is crossing the limit, currently marked at Rs 2.5 Lakh/Rs 3 Lakh (Senior Citizens) should file an income tax return.
To ensure a proper return filing always have an eye on the current updated tax filing rules.
The tax deduction in interest for the property buyers whose properties are still under construction is up to Rs 2 lakh and the stipulated time period is within five years which was earlier three years. Rs 30000 can also be deducted from tax if the project gets delay.
The income exceeds INR Rs 5 lakhs and if there is a claim for any refund, he must e-file a tax return.
On the immovable part of taxation, the date of the agreement fixing the amount during transfer would be considered to compute capital gains and not the date of registration, if payment has been made through non-cash modes.
For claiming agricultural income, one has to produce a testimony of expenditure.
Capital gains exemption in the capital gains account scheme, has demanded the previous year of transfer, the section of exemption, the balance amount unused, purchasing year of new assets, and amount utilized out of capital gains schemes.
Some of the Form Filling Rules Like:
- As the TDS is deducted directly from the banks and employers, still there is a need to check out the same into the annual account statement. Assessing officer has been given the right to make suo moto adjustments to returns before an assessment if some income is seen in Form 26 AS, but not declared in the return,” told by chartered accountant Paras Savla.
- Tax slab should be checked accordingly as the person believes to have given the tax through the bank under any scheme such as Bank FD, EPF withdrawal before five years etc. The basis of cross-checking is to duly watch the different slab rate (10/20/30%) whichever apply in the case.
- The FD interest is still countable for the deduction of tax under the income tax return procedure, one should not take it as the same saving bank account scheme in which the FD interest includes.
- Some of the income is not liable for the deductions but still should be notified to the authority. Incomes on agriculture, stocks & dividends below 10 lakh and other schemes of no deduction must be notified. “There is a separate Schedule Exempt Income (EI) in the return of income wherein a taxpayer is required to report the details of exempt income,” told Surana.
- Long-term capital gains should not be given a place in the capital gains section. Short-term capital gains(STCG) is confused with STCG under section 111A and STCG others. From this, the amount gets filled against one another in return gives double of income from capital gains.
- The co-owner who is not paying the EMI cannot claim the principal and interest deduction. And for the same, rental income must be shared proportionately.
- To claim the deductions, you have to submit proof, especially for 80 G, 80 IA and 80IB to claim the deduction, Even when the person didn’t submit the proof to the employer and did the expense.
- To be open with all the bank accounts which a person held under himself should be given detailed information to the income tax filing. “A taxpayer failed to disclose other bank account details. Later, when I-T officers found transactions through AIR (annual information returns), notice was issued and the taxpayer went through the unnecessary hassle,” told Savla.
- Finally, to complete the procedure of the income tax filing, one must be very cautious while filing the returns and should be verified electronically using mobile or email(those who are earning less than five lakhs), net banking account, ATM, de-mat account or AADHAR NO. Or verification of physical acknowledgement to Banglore CPC of Income tax department.
- “Disclose all income as the penalty provisions have changed and can stretch up to 200% of the tax evaded. The assessing officer has no power to reduce the penalty,” warns Savla.
- Also, “Taxpayers are cautioned that they should not respond to such phishing emails and avoid downloading any attachment, which may contain a virus or malicious software,” CBDT has notified.
