Filing income tax is one of the most significant liabilities on a citizen of India. However, if not done right, it can also trigger problems for you. Hence, income tax should be filed properly otherwise taxpayers may have to face the dreaded income tax notice.
If you have invested for your children, you will have to tell the income tax department when you are filing your income tax. If you are getting interest on the investments made in your children's account, you will have to show it as your income.
If you have earned interest in your PPF account, you won't have to pay any tax on it. However, you will have to inform the tax department about it in your ITR form. There is a separate space for furnishing this kind of income tax.
Many times, people think that the income of savings accounts is too insignificant to mention in their ITR forms. However, it is imperative that even small incomes are declared. Even a small problem can get you an income tax notice.
If you invest abroad via direct equity holdings or foreign funds of house property, you must declare these in your forms. You will have to furnish the details of incomes originating from these holdings.
You must also be aware of accrued interest. This is an income of interest over interest. This kind of income is credited at a time of the maturity of any plan.
Such income could be taxable and hence should be declared in ITR forms.
