Things to remember when filing ITR

We are already in the month of July and taxpayers would have braced themselves for filing their income tax returns (ITRs) before the fast-approaching deadline of July 31. It is important that the taxpayer fills up the correct form as well as correct and full details of all types of incomes to avoid any complications in future. Let us take a look at the basic things that a taxpayer needs to be careful about while filling up ITR.

The first and foremost thing is to fill up the correct ITR form. There are many types of ITR forms for different types of taxpayers, so it is necessary to choose the correct form to make sure that the ITR filed is valid. A wrong ITR form filed by the taxpayer is as good as ITR not filed, in which case the taxpayer will have to face the consequences of not filing the ITR.

The second thing is that the taxpayer should take into account all types of incomes that he or she has received during the course of the year. Apart from the regular salary or professional fee, the taxpayer could be earning other incomes on his financial investments and real estate assets such as rent, interest, dividend, capital gain, and so on. All these incomes have to be accounted for in the ITR, for if these are not mentioned in the ITR, it would be tantamount to concealment of income, which can invite penal and legal action by the IT department.

Hence, to make sure that one abides by all the provisions of the IT Act, it is absolutely necessary that the details of all sources of incomes are mentioned in the ITR.