File your income tax returns and keep these dos and don'ts in mind

File on time and keep your documents safe even after filing in case your ITR is scrutinised later on

 

 

The deadline for filing your income tax returns for the FY 2016-17 is the 31st July, 2018. It is, therefore, necessary that all taxpayers be aware of the essential dos and don’ts of tax filing so that they can avoid last-minute errors. Take a look at our list below:

DOs

1. Organize

It is important to keep your documents ready at the go. For filing, you will need all your old tax receipts, receipts of income and investments, Form 26AS, Form 16 etc. Keep these documents handy when filing for a quicker process; and also remember to keep them safe after you are done filling out the form online. You might need them in case your return is called out for scrutiny later.

2. Check your calculation

Go over your tax documents and do your calculations. Then, go over your math once again to ensure that all your calculations are correct. If you want help, you can always turn to an expert who will help you check your calculations and ensure accuracy. Besides, e-filing is highly recommended since that itself eliminates the chance of error. Those with income in excess of Rs 500,000 or those seeking a refund, must mandatorily e-file.

DON’Ts

1. Make mistakes in details

During filing, you will be asked to fill in many details such as your bank details (account number, IFSC code, name as per bank records etc.), PAN number, postal address, and email id. Incorrect information can cause problems in your return being processed. You may also not be able to receive important communications from the tax department like refund cheque, error notices etc.

2. Forget to claim Section 80 deductions

The best way to reduce your tax liability is to use the deductions offered under Section 80 to their fullest. Even if you were not able to submit proof of investment to your employer earlier, you can still claim the deductions while filing the ITR, however keeping all proofs safely is very important, should the assessing officer ask for them later...READ MORE