Importance of being accurate and complete in tax returns

Filing of our income tax returns at the end of the financial year is a fundamental duty of every individual. With the latest amendment in the income tax laws, it mandatory for all individuals with income of over Rs 5 lacs to efile their income returns. It would be also worthwhile to note that that with the implementation of major systems across verticals the income tax department has already set up a system to capture relevant information from almost all quarters and cross verify the same with the income tax return submitted by you. It is thus very important to be accurate and complete while preparing your income tax return.

The following could be the points to be considered to ensure that your return is accurate and complete:

• A. Consider all the sources of your income.
• B. Now take each source and consider all transactions made during the financial year under this income head.
• C. Compute the income, under each head by adding the income from all transactions,
• D. Apply the appropriate deductions.
• E. Arrive at the taxable income.
• F. Enter all taxes that have been deducted from you at Source.
• G. Enter all taxes that have been deposited by you directly to the income tax department.
• H. Validate your tax credits with Form 26AS on the income tax website.
• I. Check the calculations of your return.
• J. Efile your return.

Please ensure that your computation is correct and you do not have any tax payable while you are filing in your return. If you have any taxes due in your return then you would not be able to efile your return. Delayed payment of taxes makes you liable for penal interests. It is thus important to keep a track of all your transactions during the financial year and submit a complete and accurate income tax return at the end of the period. The importance of preserving the relevant documents and also paying your taxes in time, cannot be overemphasized.