INCOME TAX RETURN IN INDIA- Important things to be kept in mind
INCOME TAX RETURN IN INDIA
The financial year 2021-22 is coming to an end now and every
assessee needs to prepare and file their Income
Tax Return in India on or before the due dates prescribed under
the Income Tax Act.
In this write up, we have provided some of the important
things which should be kept in mind for the purpose of filing Income Tax Return.
Things
to be kept in mind for purpose of ITR Filing
Following things shall be
kept in mind at the time of ITR filing for FY 2021-22
1)
Ensure you have done your investments eligible for deduction
before 31st March
As per the provisions of the Income Tax Act, every assessee is entitled to deduction upto Rs.1.5 lac for making investments in specified
schemes on or before the end of the financial year. Some of the investments
which are eligible for deductions are like investment in LIC, mutual funds, PF,
PPF, children education, NSC etc. In case you have not yet done your investment
as prescribed under section 80 C you may do so before 31st March
2022. Similarly, there is additional deduction of Rs.50,000 for making
investment in mediclaim or health insurance. This deduction is eligible u/s 80D
and is over and above the prescribed limit of investment of Rs.1.5 lac under
section 80C. Accordingly, such investments may also be made before 31st
March.
2)
Close your books and make reconciliations
In case of business assesses, it is important to close the
books of accounts and make all the provision entries and reconcile the figures
of sales and purchases with Form 26AS, GST returns and bank statements.
3)
Reconciliation between form 26AS and AIS
Nowadays, tax department has all the information about all
the financial and non-financial transactions of the tax assessee and same are
automatically reflected on the tax portal in the form of form 26AS and form
AIS. Therefore, it is very important to consider all those transactions at the
time of preparation and filing of Income
Tax Return in India. Failure to reconcile the same may result in issuance of income tax
notice by the tax authorities and opening of the case of the assessee for the
purpose of scrutiny assessment.
4)
Keep handy all the
documents required for Tax Return Filing
Normally, lot of information and documents are required for tax return filing
by making proper analysis of income and deductions allowed etc. and therefore,
it is advisable to keep all the necessary documents handy. Following are the
list of documents which are normally required by every assessee for preparation
and filing of Income Tax Return.
a)
In case of salaried employees, copy
of form 16, salary slip, employment contract letter
b)
Copy of TDS certificate in form 16A
c)
Copy of form 26AS and AIS
d)
Copy of bank statements of all the
bank accounts including bank account outside India in case of Residents having
overseas bank account
e)
In case of Non Residents, copy of
visa, passport and details of number of days of stay in India during last year,
last 4 years, last 7 years and last 10 years in order to determine the
residential status. Also, their Tax Identification number in foreign country
f)
Copy of documentary evidences of
investments made u/s 80C and 80D
g)
Copy of PAN, Aadhar, Passport
h)
In case of investment in shares,
mutual funds, copies of contract notes, statement of investments etc.
i)
In case of sale of property, copies
of sale and purchase deed
j)
Income tax login password
Above are some of the things which should be kept in mind
while filing Income Tax Return in India.
The list is not exhaustive and only illustrative.
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