- Do's & Don't at incometaxindiaefiling.gov.in and incometaxindia.gov.in
Many
people are new to the world of e – filing of Income Tax Returns at incometaxindiaefiling.gov.in and incometaxindia.gov.in. As the paper form of return
is now outdated, people are moving towards the technology to file online
returns. There are many complications and unknown process in e-filing of return.
We are presenting here a helping guide for filling the major schedules from
General Schedule i.e. Schedule of Personal Information to Schedule of Foreign
Assets for all of you who file return online in any of the Tax Return Forms i.e.
ITR. Let us have a look at Do’s and Don’ts i.e. certain precautions to be taken
at the time of e-filing the Income Tax Return.
Schedule wise safety
measures:
Ø PART A – General Schedule (Schedule for
Personal Information):
- The
following details entered by you in the Tax Return Form must be as per PAN
database:
o Name
o Date of
Birth
o Sex
If it does not match the PAN database then an error
will be generated while filing the return.
- Always
be careful in entering your address and e – mail ID. As you will be communicated
by the Income Tax Department on the basis of address and ID in the return if the
same are wrong then you may not be receiving communications properly and this
will be hazardous.
-
Provide exact telephone number as you will receive all
SMS communication by this number.
-
Be cautious while selecting your residential status as
the mistake in selecting the residential status may hinder some of your tax
benefit treatment.
Ø PART A – Balance Sheet, Profit and Loss
Account, Other Information and Quantity Details Schedules:
- Fill the details in Balance Sheet and Profit and Loss Account as per the Books of Accounts prepared by you.
-
Don’t forget to provide all the details of disallowed
additions, Previous Year disallowed expense that can be claimed in the current
year etc. Go through the entire schedule this will save a major amount of
tax.
-
In case the Income Tax Return is of an entity whose
accounts are auditable, the detail of quantity of stock is to be provided. Be as
specific as you can, as stock is the field that creates danger at the time of
scrutiny.
Ø PART B – Computation of Total Income and
Tax Liability:
- The schedules of all the heads should be filled accurately so that the Total Income will be accurate.
-
Keep watch that your salary income must match with the
figure in your TDS Certificate.
-
Be careful in filling the details that are ambiguous
and may create single income to be calculated twice. Or the expense will not be
considered. For example don’t forget to enter details of Depreciation Allowed as
per Income Tax else the benefit will not be available.
-
See that the Loss under the Head Income from House
Property has the same net effect in the final value.
-
IN the Tax Liability schedule see that you have
entered proper details of the advance tax paid.
-
Tally your TDS and TCS credit with 26AS so if they are
less or more you can intimate it to the concerned authority.
-
The next thing is enter the Bank details such as
Account Number, Bank Name, MICR Code and IFSC code as per their specific
format.
Ø Schedule S: Details of Income from
Salary:
-
Salary amount should be in harmony with the amount in
TDS Credit Statement.
-
Enter Basic Salary and other parts of salary net of
TDS.
-
See the bifurcations properly of the part of salary
which are confusing such as:
o House
Rent Allowance and Rent free Accommodation
o Medical
Allowance and Medical Reimbursement etc.
This will affect your tax on income so proper
bifurcation is necessary.
Ø Schedule HP: Details of Income from House
Property:
-
In case where the house property is let out and there
is loss under such head of income you have to provide all the details pertaining
to house property to claim such loss.
-
When the property is owned by joint owners, check the
option “Is the Property Co-owned?” And enter the amount of rent in the ratio
that you own the property.
Ø Schedule BP: Computation of income from
Business & Profession:
-
Enter specific expenses under respective heads only
such as Depreciation, Interest, Salary etc. should be shown under specific heads
and not as expense as a whole under one head.
-
Items like income from interest, speculative business
etc shown in P& L A/c in the books should be shown separately under the
respective heads. They must be first disallowed form the P & L
A/c.
-
At first the depreciation is added back to the profit,
so Depreciation as per Income Tax is to be provided in the schedule of
Depreciation on Assets and the amount of allowable depreciation will be than
deducted to arrive at true profit.
-
All the disallowed Income and Expenditure must be
entered in Other Information schedule so that accurate total income can be
arrived at.
-
Appropriate Business Code should be selected to avail
business related benefit from tax.
Ø Schedule CG: Capital Gains:
-
Always keep in mind to claim deduction under section
54 if eligible.
-
Be sure that the Capital Gain arising out of different
types of assets should be considered and entered separately in the
schedule.
-
As per the provisions of the Income Tax Act, capital
gain is to be paid in the quarter in which it arises, so you have to enter
details of such capital gain tax paid.
-
You have to enter the details of full consideration
received on sale of asset.
Ø Schedules OS : Income from Other
Sources:
-
The point to be kept in mind is Interest from saving
bank should be entered at proper place as the same is allowed as deduction as
per the provisions of Section 80TTA.
-
Winning from Lotteries, Speculative Income etc
attracts special tax rates so don’t consider them in the income that are taxed
at normal rate.
-
In case you receive any Dividend from domestic
company, the same is first to be recorded as Income under the head Income from
Other Sources and then it will be allowed as deduction under Section 10(34) of
the Income Tax Act.
Ø Schedules Depreciation on Plant &
Machinery, Depreciation on Other Assets:
-
You have to compulsorily enter the amount of
depreciation on Plant & Machinery and other assets along with addition and
reduction in such assets.
-
To claim full amount of depreciation, Depreciation
entered and P & L should match the Depreciation As per Income Tax calculated
as above.
Ø Schedules of Details of Income after Set
off of B/F losses of earlier years and Details of Losses to be carried forward
to future years:
-
Income Tax Act allows the loss to be carried forward
for eight years. So claim it if you have any unabsorbed depreciation.
-
If you file the loss return after the due date of
filing the return, you will not be able to carry forward such loss. So file the
loss returns before due date. This will be helpful in saving tax in subsequent
years.
-
Claim the loss of different nature under the
respective Heads.
-
Enter proper date of filing the return.
Ø Schedule of Unabsorbed
depreciation:
-
Depreciation varies in Income Tax and Companies Act in
India. This creates a timing difference and leads to an amount of unabsorbed
depreciation. In this schedule you have to provide the amount of such unabsorbed
depreciation.
Ø Schedules of deductions under Chapter VI-A,
Section 10 and MAT Credit:
-
Always claim the exemptions only if you have the
supporting evidence. It is a pre-requisite.
-
While claiming exemption under Section 80G for
donation, first check the type of institution where you have donated. It will
help you calculate the amount eligible for exemption.
-
To avail MAT credit fill all the details accurately of
tax paid.
Ø Schedule for Income of Specified Persons
includible in the income of assessee, Income Chargeable to Income Tax at special
rates and details if Exempt Income:
-
You have to provide the relationship of the person
whose income is to be clubbed and also the nature of such income.
-
Certain Income are taxable at special rates such as
capital gain of different nature may attract different type of rates so fill
correct rate so that correct tax may be levied on such income.
-
Exempt Income such as Life Insurance Refund, PPF
Interest etc are to be shown to claim the exemptions of such income. Don’t fill
those details under the taxable heads.
Ø Schedule IF: Information regarding
partnership firm in which you are partner:
-
Provide accurate PAN, so that it becomes easy for
Income Tax Department to cross tally the figures and details in case further
assessment is called required.
-
Don’t merge Interest received on capital in
partnership firm with salary or remuneration by whatever name called because
salary, remuneration etc are exempted while interest on capital is a taxable
income.
Ø Schedule IT: Details of Advance Tax and
Self Assessment Tax Payments of Income Tax:
-
Enter the details of one Challan in one place and in
case there are more than one challan, enter the details separately.
-
Be accurate in filling the Challan Number, date and
amount otherwise it may not match the Income Tax database and you may not
receive the credit or benefit of the same.
Ø Schedules TDS & TCS:
-
Always claim the TDS or TCS credit in the respective
schedule.
-
Consider the Tax Credit Statement 26AS to match claim
the TDS TCS Credit.
-
Always enter the figure of TDS in the schedule of TDS
and TCS in the schedule of TCS.
Ø Schedule FA: Details of Foreign
Assets:
-
The main point to be kept in mind is that you have to
provide all the details of assets belonging to you outside India such as Bank
Account, Immovable Property etc.
-
Never forget that the return form also asks about the
details of the account in foreign country in which you have signing authority in
that account.
-
If you hold interest in any entity and / or you are a
trustee in trust created under any law outside India than also you need to
provide all the details so keep them ready with you.
Ø General Measures:
-
Don’t forget to provide correct address and bank
details so that you can receive your refund.
-
Always send your ITR to CPC Bangalore (in case you
have not digitally signed it) within 120 days from the date of E – filing of
return.
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