Blog Details

1. You should file taxes even if your income exceeds the basic limit.
   The gross income is calculated after taking into account exemptions such as house rent, conveyance and other allowances, but before the deductions. People believe that if tax has been deducted at source, their tax compliance is taken care of. The rules say that an individual has to file his tax return if the gross taxable income is above the basic exemption limit. 

3. You should mention cash deposits after demonetization.
   The income tax department has already got information about the cash deposit therefore if you have deposited more than Rs. 2 lakh cash in your account after demonetization then you should mention it into your ITR. The penalty for misreporting can range from 50% to 200% of the under-reported income. the taxpayer can also be prosecuted for submitting a false statement.

4. You shall mention your Aadhar card details.
   The tax authorities have the power to slap a fine or even prosecute you for submitting a false statement in verification under section 277 of the Income Tax Act, 1961. If you have the Aadhaar, it is also necessary to link it with the PAN if you are filing your tax return. Those who do not have aadhar card are exempted from it but can face consequences therefore it is safe to link your aadhaar to your ITR.

5. Interest and Other Income should be included.
   People have a misconception that that interest from tax-saving fixed deposits is tax-free. They don’t realize that these deposits help save tax under Sec 80C, but the interest is fully taxable. After the 2015 Budget, TDS also applies to recurring deposits if the interest during a financial year exceeds Rs 10,000. As banks start sharing data, there could be TDS if the interest from deposits made across other banks exceeds the threshold.

5. Income from the previous employer should also be mentioned.
   Often, the new employer doesn’t take into account the income earned from the previous job. Tax is deducted on the assumption that income for the remaining months is the only income for the year. But this mistake is discovered when he files his tax return. At that time, the incomes from the two employers are added and the deduction and exemption are halved. As a result, people see a drastic drop in their tax outgo. This also means a large tax payment at the time of filing returns because the duplicate benefits are rolled back. Some people think they can get away with a lower tax if they don’t mention the income from the previous employer in your return. If some tax has been deducted on the income from the first employer, it will be reflected in Form 26AS. If the person doesn’t report that income, the discrepancy will get picked up by the computerised scrutiny system and  he will get a served a notice

6. House property
   A House property could be your home, an office, a shop, a building or some land attached to the building like a parking lot. The Income Tax Act does not differentiate between a commercial and residential property. All types of properties are taxed under the head ‘income from house property’ in the income tax return. When a property is used for the purpose of business or profession or for carrying out freelancing work – it is taxed under the ‘income from business and profession’ head. House property is of 3 types: self- occupied, inherited and on lease.  The income from this should also be filed under ITR 1 AND 4.

7. Lookout for deductions under section 80
   There are a number of deductions available under various sections that will bring down your taxable income. The most popular one is section 80C of Chapter VIA. Other preferred deductions under chapter VIA are 80D, 80E, 80G, 80DDB and so on. In this article, let us discuss some of the important deductions under chapter VIA that a taxpayer can claim.
   
   80c- deductions on investments.
   80ccc- deductions for any amount paid or deposited in any annuity plan of LIC or any other insurer.
   80ccd- deductions for contribution to pensioners account.
   80TTA- interest on savings account
   80GG- deductions on house rent paid.
   80E- interest on education loans.
   80EE- interest on home loan etc. 

8. Capital gain.
   Any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain. This gain or profit comes under the category ‘income’, and hence you will need to pay tax for that amount in the year in which the transfer of the capital asset takes place. This is called the capital gains tax, which can be short-term or long-term. From the year 2018-19, if the person had a long term capital gain of more than ₹1 lakh from the investments made into listed equity shares and equity-oriented funds, then the same will be now taxable. The respective changes in regards to the same have been made in the ITR forms".

9. Sale of property
   Whenever an immovable property is sold of an amount more than ₹50 lakh than 1% TDS is charged and here again the PAN number of the buyer has to be mentioned mandatorily along with the information about percentage share, the amount and the property address.

10. Know your forms.
    ITR  form 1- any person who received regular salary/ pension
    ITR form 2- all those who come under the category of Hindu undivided family and have income other than profits gained from business and profession.
    ITR form V- provided to acknowledge returns have been filed. Etc.
    There exist many forms for various purposes. Make sure you know those are of use to you.

WEBLIOGRAPHY

• Ten rules you must follow while filing income tax returns. (2018, July 12). Retrieved from https://economictimes.indiatimes.com/wealth/tax/ten-rules-you-must-follow-while-filing-income-tax-return/articleshow/59296048.cms?from=mdr

• Capital gains tax India. (2020, July 28). Retrieved from https://cleartax.in/s/capital-gains-income

• Income tax. (2020, June 5). Retrieved from https://www.policybazaar.com/income-tax/

Deductions on Section 80C, 80CCC, 80 CCD &80D. (2020, July 28). Retrieved from https://cleartax.in/s/80c-80-deductions