Precautions to take while filing Income Tax Return

Taxpayers can avoid most common filing mistakes by taking the below mentioned precautions while filing their Income Tax Return (ITR):

  • New joiners/Inter Entity Transfer/Job Change/More than one Form 16 during the year 2016-17: It is mandatory to report income/TDS from both entities otherwise you might get tax due notice from ITD. Your employer would be issuing you Form 16 for the income from current employment only. Hence new joiners/Inter Entity Transfers should ensure to upload/enter Form 16(s) from their previous employer(s)/entities using the ‘Upload Form 16’ link available at TaxSpanner or in ITR navigation. This process will ensure your tax return for the year 2016-17 is complete.
  • Ensure reporting/verifying all incomes in mentioned in Form 26AS and Update Aadhaar card details in the return.
  • Job change during the year may lead to tax due. You must pay the additional tax and report income/tax of both Form16s.
  • Onsite employees should declare global income in India and claim the DTAA relief if they are resident during the financial year.
  • NRI employees should claim refund on taxes deducted on salary, fixed deposit, capital gain etc. during the financial year by filing return, if their taxable income is less.
  • Higher Income employees, i.e., those with income above Rs. 50 lakhs, should declare their assets and liabilities in the return.
  • Claim deduction and exemption while filing the return, if their submission to employer was missed during proof verification activity.
  • If you hold any Foreign assets, viz., salary account in foreign country or share/ESOP, property etc. then declare such income and assets details in your return to avoid penalties. Keep the record safe for 16 years for income tax verification.
  • Consult a tax expert for complex and doubtful circumstances to avoid any such return filing mistakes.

 

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