Income Tax Return Online: The last date (31 July 2022) for filing Income Tax Return i.e. ITR for the financial year 2021-2022 is near. Everyone is busy filling it quickly. Although most people focus on saving tax while filing ITR, but even after so much caution, there are some mistakes which they do not pay attention to and they miss the opportunity to save tax. Rajat Jain, Tax Director, SS Kothari Mehta & Company (Chartered Accountants), is telling about some such important things that people usually miss.
Do not ignore AIS
Rajat Jain says that now a new option has been added while filing ITR, which is called Annual Information Statement (AIS). This is a comprehensive detail page where you have to give the details of all the financial transactions that you have done. Because it can be easily checked by the Income Tax Department, so it is better to fill the information yourself. He said that it is different from Form-26AS as Form-26AS is primarily a summary of financial statements/transactions where TDS is deducted. However, AIS also covers other transactions. Therefore, while filing the return, make sure to provide the information asked in AIS. Fill every information in this section properly, any kind of mismatch can cause problems in future.
Do not make mistake on these 10 points
CA Rajat Jain explains that 10 small things that need to be taken care of while filing income tax return are as follows.
1. Section 80TTA and Section 80TTB
Individuals who do not fall under the senior citizen category can claim deduction up to Rs 10,000 on interest earned on savings account with a bank under section 80TTA. However, interest on fixed deposits is taxable. For senior citizens, there is an increased limit of Rs 50,000 and interest on fixed deposits is also covered for the purpose of deduction.
2. Section 44ADA/44AD
Under section 44ADA, a specified professional whose income from his profession is up to Rs 50 lakh can claim taxable income at least 50 per cent of the total receipts. Wherein, in case of taxpayers having turnover up to Rs 2 crore, which is not covered under section 44ADA, they can declare income under section 44AD, wherein at least 8 per cent of the total receipts can be treated as taxable income. With regard to the number of receipts received through banking channels, the limit for such receipts is up to 6 per cent. In such a situation, people should also pay attention to this.
3. Section 80CCD(1B)
Under this, additional deduction is allowed on contribution up to Rs 50,000 for any person in NPS.
4. Section 80E
Under section 80E, while computing total income, deduction can be claimed in respect of interest on loan taken by a person from a financial institution or an approved charitable trust for the purpose of pursuing higher education.
5. Section 10(10CC)
If the employee’s income tax is being paid by the employer, then the staff can save some tax.
6. Section 80GG
Under section 80GG, in respect of rent paid for accommodation, a person can claim a deduction up to a maximum of Rs.60,000 in a year as House Rent Allowance (‘HRA’). For this you need to submit a declaration in Form-10BA.
7. Section 80D
You also have the option to claim deduction for medical policies and medical expenses for yourself and family. Apart from this, one can also claim for preventive health checkup (including the amount paid in cash). However, it can be for self, spouse and dependent children and its amount is up to Rs.5,000.
8. Section 80G
You can also claim deduction for donations made to registered charitable organizations or NGOs. From FY 2021-22, to claim deduction under section 80G, a certificate in Form 10BE needs to be submitted.
9. Section 10(32)
Parents can claim an exemption of Rs 1,500 for each minor child whose income is covered under section 64(1A).
10. Section 112A
Exemption up to Rs 1,00,000 on long term capital gains arising on transfer of equity shares in a company or a unit of an equity fund or units of a business trust. Profits exceeding Rs. 1,00,000 are taxed at the rate of 10 per cent.