For most of us, filing taxes can be a big chore. Whether we file it early on, or right at the nick of the due date, it still leaves us wondering if we covered all the aspects of income tax (I-T) return filing. So here are some of the lesser known facts about return filing.
Reporting exempt income: Although exempt incomes are not taxable, reporting it in your income tax return is mandatory. New columns have been inserted in ITR 1 form especially for those persons who have income from dividend and long-term capital gains (LTCG) which are not taxable.
E-filing is not always mandatory: E-filing is mandatory for all the types of assesses. However, to reduce trouble, government has made an exception in certain cases. If you are an individual whose total income is under Rs 5 lakh, you can file your return in paper format. This exception is also available for HUF whose total income is under Rs 5 lakh and individuals who are 80 years or above. But if you have claimed a refund, you need to e-file your I-T Return.
Belated return can now be revised: The government has allowed revision of belated returns starting FY 2016-17. So, f you have noticed a mistake in your belated return then as opposed to early provisions, you are now allowed to revise your return and correct those mistakes.
Disclose all assets and liabilities: If you, or your HUF’s total income exceeds Rs 50 lakh, don’t forget to declare all your assets and liabilities in the return like cost of acquisition, addresses, etc., of all properties, among others.
Disclosing your bank account (a/c) : It is a myth that one needs to report only that bank account which will receive refund. Disclosing all your bank accounts, whether still operational or not is compulsory, barring dormant accounts, i.e. those not operational for over three financial years.
BEYOND THE OBVIOUS
- Athough exempt incomes are not taxable, reporting it in your I-T return is mandatory
- If your total income is under Rs 5 lakh, file your return in paper format.
- If your total income exceeds Rs 50 lakh, declare all your assets and liabilities
The writer is CEO and co-founder at Tax2win.in
