ITR Filing ALERT! Avoid These 6 Mistakes or Pay a Hefty Fine

New Delhi: All individuals with an annual income of over Rs 2.5 and a life expectancy of fewer than 60 years are required to file an Income Tax Return (ITR). According to the government, seniors with an annual income of less than Rs 30,000 are prohibited from filing income tax returns.

If their simplest supply of earnings is pension and hobby on deposits, great senior people (the ones over seventy-five years old) do now no longer require documenting an ITR. Meanwhile, the ITR submitting cut-off date has been prolonged via way of means of the Central Government as soon as more.

Tax returns can now be filed till March 15th. The closing date for submitting profits tax returns for the evaluation yr. 2021-22 has been prolonged to March 15, 2022, in line with the Central Board of Direct Taxes (CBDT). Previously, ITR may be filed till December 31. If you haven`t submitted your ITR yet, accomplish that as quickly as possible.

DON’T MAKE THIS MISTAKE WHILE FILING ITR

1.  It is important to show the interest received on the savings account

The majority of consumers are unaware that the interest accumulated in their savings account needs to be reported as ITR income. Here they get lost. Interest accruing on savings accounts up to Rs 10,000 is exempt under Section 80TTA of the Income Tax Act. The tax exemption for Section 80TTB is  50,000 rupees for the elderly. In addition, interest income must be reported on the ITR.

2.  It is necessary to show the interest received from FD

Interest on time deposits is taxed under the Income Tax Act. Therefore, it is important to show an interest in ITR.

3. Filling of Wrong ITR Form

Several ITR forms are available, depending on your source of income. For this reason, it is important to choose the right income tax return for your source of income.

4. Forgetting E-verification

People often consider that their paintings are completed after submitting an ITR, however, e-verification is likewise required. E-verification should be finished within one hundred twenty days of the ITR submission deadline. If you don`t do this, your ITR will suffer. E-verification may be performed in some ways. This may be performed by the usage of your Net Banking account and your Aadhaar OTP.

5.  Not understanding the new and old system

A new tax system has also been adopted by the government. Previous tax systems allowed deductions and tax exemptions. However, under the new tax system,  the tax rate will be lower, but there will be no deductions or deductions. You need to evaluate the two tax systems to see which is cheaper for you, which is the one that saves the most money. Next, submit your tax return.

6.  Dividend income not disclosed

Dividends from stocks and investment trusts were previously tax-exempt. However, after the 2020-21 tax year, dividends from stocks and investment trusts will be taxed according to the tax system. As a result, this year's ITR should also include dividend income.