It is July. The first quarter of the financial year has come to an end and appraisals too are behind for most of salaried employees. Most of you must have got your Form 16 from your employers. That paves the way for filing of income tax returns as the July 31 deadline is fast approaching.
Income tax return filing is an important act and has its own benefits if you do it before the deadline. Here are a few seemingly small things that all salaried individuals should take care of while filing their income.
Check your Form 26AS
This is the buzzword and do not miss it. “Tax authorities match the entries in Form 26AS with your submissions,” points out Akhil Chandna, Director, Grant Thornton India LLP. “You must check your Form 26AS online and ensure that there are not any mismatches between your income tax returns and the contents of Form 26AS.”
“You must be careful while filing your income tax returns. Do confirm if you are filing for the correct assessment year and you have chosen the right format,” says Balwant Jain. There are multiple formats for different types of tax payers. Also these formats change over the years. If you are filing income tax returns for multiple years, you have to be doubly careful.
Mutual fund investments
Mutual fund investments are catching up big time and there are many first time investors in India. Though there was no long-term capital gains on equity funds till last financial year, the taxes on short-term capital gains on both equity and non-equity funds were payable. So was the case with long-term capital gains on non-equity funds. That necessitates you to run through your mutual fund statements and your bank statements. “If you have opted for systematic investment plans (SIP) or systematic withdrawal plans (SWP), you will have to compute taxes and file accordingly,” says Balwant Jain.
Interest income
“Do not forget to mention the interest earned on your saving bank accounts and fixed deposits,”says Balwant Jain, certified financial planner based in Mumbai. You should be adding this interest income to your gross income and then proceed to compute the income tax. Do check your bank account statements for interest earned by various fixed deposits and bonds you hold. If you have invested in a bank fixed deposits
Income of minors
“If you have a minor son and daughter then the interest income earned in their name must be added to your income and then offered to tax,” says Balwant Jain. The income earned in the name of kids must be added to the income of that parent whose income is higher among two.
Provide correct bank details
Last but the most important, mention your correct bank account details while filing income tax returns. This is essential to process your tax refund, if any.
