Income Tax Return filing

E-filing has reduced the hassles of filing ITR. If you still haven’t filed your ITR yet, there’s still time since the authorities have extended the last date to November 30th 2020 because of the measures taken by the government to curb the pandemic. So before you file the ITR for 2019-20 or AY 20-21, here are some of the major tasks which you need to complete beforehand.

So, let’s discuss this in detail.

Verify details from Form 26AS

The revised Form 26AS was made available by the Income Tax Department on 15th July 2020. The updates form contains more details than the old one. The updated details on the form will include email ID and mobile number registered with the Income Tax Department. Don’t forget to verify that these are the right ones you are using presently. If any of the contact details are wrong, you need to get this rectified in the records of the IT department to assure that the communication sent by the department is received by you, on time.

The Form 26AS also has the lists of tax paid from your end and on your behalf. You can’t attach and send the printed documents of paid tax with physical ITR or upload it while filing it online. The credit for TDS and other taxes paid by you is provided on the basis of records available with the income tax department. Most of the data are available with Form 26AS so it’s always better to verify the details in advance to ensure that any corrective measure needed can be taken well in time.

Always verify that the tax deducted, collected and paid are reflected in the form in the right way. If any discrepancy is found, you need to point this out directly to the deductor, where the tax was deposited. A request should be made to the deductor to ensure that the credit is properly reflected. Make this an exercise to assure that you will get the right credit for your taxes when the ITR is processed.

The information on TDS and the advance tax are known by the IT department in the means of returns of TDS filed by the deductor or by the bank. Sometimes proper credit may not be reflected in the Form 26AS because of errors from the bank or the deductor.

Along with the contact details, the new 26AS might have other details like money deposited, money withdrawn, FDs (fixed deposits) made, purchases of shares and mutual funds, sale and purchase of property over a certain fiscal limit. So cross-checking the details on Form 26AS with all your records should be made a strict practise to assure the data accuracy. The Form 26AS can be obtained from the Income Tax portal or via net banking facility of authorised banks. Such verifications will assist you to avoid all the mistakes in your ITR filing.

Verify Form 16 /16A

Important dates related to the tax filing were extended this year because of the pandemic. You might still haven’t received Form 16 or Form 16A in respect to the Tax Deducted from Source. You must check whether the details reflected on the form are accurate. The important details such as PAN, clear allowances like HRA, LTA, should be verified in priority. It is a common issue that there exists discrepancy due to failing to submit the requisite documents in time. The employer might have deducted tax for such contributions negotiating them as taxable.

Important dates related to the tax filing were extended this year because of the pandemic. You might still haven’t received Form 16 or Form 16A in respect to the Tax Deducted from Source. You must check whether the details reflected on the form are accurate. The important details such as PAN, clear allowances like HRA, LTA, should be verified in priority. It is a common issue that there exists discrepancy due to failing to submit the requisite documents in time. The employer might have deducted tax for such contributions negotiating them as taxable.

Also verify the deductions for payments like home loan interest, education loan payment, tuition fee, health insurance premium etc. The Chartered Accountant will consider the numbers while filing the tax return. In case of any sort of discrepancy, you should point this out to the employer immediately. The correction should be made from the employer’s end as soon as possible or at least before the time of your ITR is processed.

Likewise, also verify the Form 16A you received from the bank. The PAN number, income, TDS etc shown in the form should be verified. PAN verification is mandatory in the primary year of relationship with the deductor. Probability of having errors with the PAN details is found mostly in the first year alone.

The last date extension for filing ITR

Usually, the date for filing ITR is 31st July every year, but as mentioned above, it has changed to 30th November for this year. The deadline for contributing to Capital Gains Account also got extended till 30th November 2020. Make sure you check all the mentioned details and complete cross verifying all the required documents before filing your return online.

There are multiple things you should do before filing the ITR, even if you delayed it past the due date. For example, if you are claiming exemption under Section 54 or 54F, for the investment in a residential house, it also asks you to transfer the unutilized funds to a Capital Gains Account. This should be opened with the specified bank within the due date of ITR. This should be done in case you are not able to use the essential money completely by the due date of filing of the ITR.

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