Financial advisor Arnav Pandya recommends a checklist of things to be kept in mind while filing your returns. The deadline for filing returns is on July 31.
The time for filing of income tax returns is nearing and individuals need to be careful about the various details related to this area. There has to be the correct decisions at this stage so that the entire process is completed smoothly.
It is essential that every individual pays attention to a few factors that are involved in the return filing work so that the end result is proper. Here are a few things that need to be paid attention to in the entire work.
The entire work starts with the selection of the return form by the individual. This by itself is a slightly complicated process because the return form selection depends upon the nature of the income earned by the individual.
Thus there could be a situation wherein the return form would change between two years because the nature of the income has changed. Getting and filling in the right return is absolutely necessary otherwise the return would not be considered valid. This first step can prove to be an important part of the process so adequate attention is required here.
Permanent Account Number
The entire working and dealing with the income tax department for the individual for all their tax matter depends only upon a single factor. This is the Permanent Account Number (PAN) and every linkage of the tax details has to be with this specific number.
Thus when you go and file your tax return, the PAN has to be correctly mentioned so that the details therein can be verified. Even before you get to this stage there is the use of PAN as your tax deducted at source will be linked to this number. It is the PAN that is the single factor that keeps various details together enabling the tax authorities to complete their assessment work.
Every income tax return now also requires the bank account for the purpose of ensuring that any payment that is to be made to the individual would directly go into this account.
It is not just the bank account that is required in the tax return because the ISFC code, MICR code and branch and branch address ensures that the details are given properly and that this is of the right person.
The bank details assumes the highest importance in case of refunds as the amount need not be given in the form of a cheque that can take a lot of time to come but can be directly credited to the account.
The next part comes with the entry of the right numbers in the income tax return. All the details related to the income have to be seen carefully and then entered into the income tax return.
There are consequences of getting the figures wrong as the entire return would not be considered proper and there would have to be a revised return filed with the rectified figures.
The better alternative would be to take adequate care right at the time of entering and dealing with the calculations at the initial stage so that any mistakes are eliminated right here.
One area that has to be at the forefront of all activities is the amount and manner of the various tax payments that have been made over the year.
There would be several means through which this might have been made and this would include tax deducted at source, advance tax and at the time of filing the income tax return even self assessment tax.
All these need to be considered and seen as to whether they have been made properly so that the right amount of credit is reflected in the account of the tax payer so that there are no problems at the time of assessment.