In fact, many times the application gets rejected due to a slight mistake. In case of mistake, you may not only have to pay penalty but may also get a notice from the tax department.

To avoid penalty, delayed refund or scrutiny by the Income Tax Department, it is important to be careful while filing your taxes.

Today we will tell you what kind of common mistakes are often made while filing income tax returns and how they can be avoided.

Prepare early to avoid last minute rush

ITR forms for FY 2024-25 are available. This means you can start preparing to file returns from now onwards. People often make mistakes in a hurry near the deadline. Due to this, they either have to file the return again or have to face a notice from the Income Tax Department.

Choosing the wrong form

One of the common mistakes people make while filing returns is selecting the wrong ITR form. There are seven different forms for different income and taxpayer categories. If you do not select the right form, your return will be invalid and you will have to file ITR again.

For example, if you are employed and you have filled ITR-3 or ITR-5 form, which is for those having business or professional income, then it will become invalid and you will have to file ITR again.

You may have to pay a fine if you miss the deadline

The last date for filing ITR is 31 July 2025. If a person files the return after this date, he may have to pay a fine of up to Rs 10,000. Not only this, if you file the return late, you will not get the benefit of tax deductions and the losses cannot be carried forward. Therefore, filing the return on time is not only legally mandatory, but it is also beneficial for you.

Disclose income from all sources

Many times people show only their main income, such as their salary or business income, while filing returns. They forget to mention income from other sources or deliberately try to hide it. Do not make this mistake as it can cost you dearly. Other incomes such as interest on savings or fixed deposits, income from rent or capital gains from mutual funds. It is important to mention income from all these sources.

If you hide such income, the tax department can easily know about it from your Form 26AS or AIS (Annual Information Statement) and can send a notice if caught.
After filing the return, its verification is also necessary

Many times people file the return but forget to verify it. Let us tell you that any return without verification is considered invalid. That means after filing the return, it is equally important to verify it. You can do the verification process online through Aadhaar OTP or net banking. Remember this step is mandatory.

Must review Form 26AS and AIS

Before filing the return, you should review your Form 26AS and AIS (Annual Information Statement). These documents show which transactions have taken place in your name and how much tax has already been deducted. If the information you have given in the form does not match with these documents, then it can immediately come to the notice of the tax department. Therefore, it is important that the information you have filled while filing the return matches with these.

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What is Section 87A?

Section 87A aims to provide relief to individual taxpayers, especially those in the low income group. It provides tax exemption to individuals whose total taxable income is up to ₹5 lakh under the old tax regime and up to ₹7 lakh under the new tax regime.

What’s the matter?

A public interest litigation (PIL) filed by ‘The Chamber of Tax Consultants’ argued that the filing utility software updated on July 5 arbitrarily denied taxpayers the right to claim exemption under section 87A of the Income Tax Act, 1961. The petition said that these changes made in the software used for filing returns for assessment year 2024-25 are illegal.

The Bombay High Court said, “The Central Board of Direct Taxes (CBDT) is directed to immediately issue the necessary notification under section 119 of the Income Tax Act and extend the deadline for taxpayers who are required to file returns by December 31, 2024, at least till January 15, 2025. It is necessary to ensure that all taxpayers eligible for exemption under section 87A are given an opportunity to exercise their statutory rights.”

What happens if we miss the new deadline?

• If a taxpayer misses the new deadline to file ITR for 2023-24, then many problems may arise.
• Penalties may increase – Penalties for late filing can go up to ₹10,000.
• Loss of profits – such as losses from business/profession and the opportunity to carry forward capital gains will be lost.
• Payment of Interest – 1% interest will accrue every month under Section 234A.

Important things to keep in mind while filing late return
Late Fees:

• Late fee of ₹5,000 for those with income above ₹5 lakh.
• Late fee of ₹1,000 for those with income less than ₹5 lakh.
• If the income is below the taxable limit, there will be no late fee.
• No Loss Carry Forward: Carry forward of losses from business/profession and capital gains will not be allowed.
• Tax exemptions: Certain special deductions like section 80IA, 80IB will also not apply.
• No change in tax regime: Change to old or new tax regime will not be allowed while filing late returns.

If ITR is filed on time, all these problems can be avoided. Therefore, taxpayers are advised to take advantage of the deadline extended by the High Court and file their returns on time.

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The post ITR Deadline: Deadline for filing income tax extended, know which taxpayers will get relief first appeared on Rightsofemployees.com.

Today is the last date for filing Income Tax Return (ITR Filing). According to the update released by the Income Tax Department, till the morning of 31 July, 6.13 crore people have filed ITR. There is a continuous demand on social media to extend the last date for filing ITR. Some people believe that its date will be extended by the Finance Ministry. But the government has given a clear refusal for this. But hardly you know that under a rule of Income Tax, penalty will not have to be paid even after filing ITR after 31st July.

Relief on income less than exemption limit

According to Income Tax Expert, under Section 234F (234F) of Income Tax, if your total income (Total Income in FY) is less than the basic exemption limit during a person’s financial year, then filing late ITR will not make any difference. In simple language, it can be said that if your total income in 2022-23 is Rs 2.5 lakh or less as per the old regime, then this rule will apply to you. Under this rule, you will not have to pay penalty for filing income tax after 31st July. The ITR filed on your behalf will be called Zero (0) ITR.

Penalty will have to be paid on late filing, apart from this, if you come under income tax and you miss filing ITR, then you can file belated ITR. However, on this they will have to pay a penalty for late filing. If a taxpayer files ITR after the last date, he will be fined a maximum of Rs 5,000. However, the maximum penalty for late ITR filing is Rs 1,000 for individuals whose total income during the entire financial year does not exceed Rs 5 lakh.

If the taxpayer does not file his ITR, then he will not be able to carry forward the loss incurred in the current assessment year. Apart from this, if they willfully fail to file their returns even after receiving notice from the Income Tax Department, they may face prosecution.

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Presently the process of filing income tax return is going on. To file income tax return, you have to visit the official site of Income Tax Department. But for filing income tax return, you should know about some important things.

Due to your one mistake, you can also be in trouble. Today, let us know which is the important work that you should do before filing income tax return.

What is the most important thing

You need a PAN card to file income tax return. Returns can be filed only with the help of PAN card. The Income Tax Department has said many times that it is necessary to link your PAN card with Aadhaar card. For this, the government has given time till June 30, 2023.

That is, if you do not link PAN card with Aadhaar card by June 30, 2023, then your PAN card may become inactive. If the PAN card becomes inactive then many financial transactions can be affected. Not only this, due to inoperative PAN card, you will not be able to file income tax return as well.

If you have not yet linked your PAN card with Aadhaar card, then by 31 July 2023 you can get rid of many problems by linking it. Because if you do not do this then you will have to face trouble in filing income tax return.

How to link PAN card with Aadhaar card

You can link your PAN card with Aadhaar card by visiting the official website of Income Tax Department. As soon as you go to the link, you should go to the option of Aadhaar link on the left side. After this a new page will open.

On the new page, you will have to enter the number of Aadhaar card and PAN card. Now click on the button of Validate. If the details given in Aadhaar and PAN card match then the process of linking will be done. If the details do not match, you will need to update them first.

The post Big news for these People! Do this important work before filing income tax, you will be saved from hassles first appeared on Rightsofemployees.com.

Those who are not, those people can also fill the ITR form. It is very useful in taking loan. The Income Tax Return Form (ITR Form) to be filled for this year has been released by the Income Tax Department recently. These forms have become effective from April 1, 2023.

Let us tell you that there are 7 types of ITR forms in the country. Their numbers range from ITR-1 to ITR-7. These forms have been prepared according to people with different income and sources of income. Apart from these, there is also Zero ITR form. For AY 2023-24 (Assessment year 2023-24), if a person’s annual income is above Rs 2.5 lakh according to the old tax slab or above Rs 3.5 lakh according to the new tax slab, then he must file ITR. In such a situation, Zero ITR can also be filled.

How many types of ITR forms

Let us tell you that there are mainly seven types of ITR forms. It includes ITIR-1 (ITR-1), ITIR-2 (ITR-2), ITIR-3 (ITR-3), ITIR-4 (ITR-4), ITIR-5 (ITR-5), ITIR-6 ( ITR-6) and Itir-7 (ITR-7).

ITR-1 can be filed by a resident individual who:

• Total income during the financial year does not exceed ₹ 50 lakh
• Income from salary, one house property, family pension income, agricultural income (up to ₹5000/-) and other sources, which includes:
• interest from savings accounts
• Interest on Deposits (Bank/Post Office/Cooperative Society)
• Interest from income tax refund
• Interest received on enhanced compensation
• any other interest income
• family pension
• The income of the spouse (except those covered under the Portuguese Civil Code) or the income of the minor is added (only if the source of income is within the specified limits mentioned above).

ITR 2 (ITR-2): Who is eligible to file ITR-2 for the assessment year 2021- 22?

• ITR-2 can be filed by any individual or HUF:
• Not eligible to file ITR-1 (Sahaj)
• Such persons who are not deriving profits and gains from the business or profession and are not deriving the following types of income from the profits and gains of business or profession:
• interest
• Salary
• Bonus
• Commission or remuneration, by whatever name called, received from a partnership firm
• If the income of any other person such as spouse, minor child, etc. is to be clubbed with his income – if such income falls in any of the above categories.

ITR 3 (ITR-3) : Let us tell you that this form is chosen by individual taxpayers and HUFs who earn income from owning a profession or a business. Taxpayers who have income from investment in unlisted shares, are partners in a company, are directors of a company or have a business turnover of more than Rs 2 crore, file this form.

ITR 4 (ITR-4): Individuals, HUFs and partnership firms who are residents of India, earning income from any business or profession (doctor, lawyer etc.); They have to select ITR-4. It is also called SUGAM Form. Explain that there is no limit on the income earned in this.

ITR 5 (ITR-5) : Let us tell you that this ITR-5 form is for institutions. Entities that are registered as Firms, LLPs, AOPs, BOIs have to fill ITR-5 form.

ITR 6 (ITR-6) : ITR 6 is for any company which is not claiming exemption under section 11 of the Income Tax Act, 1961. Firms filing income tax return under this section can file it electronically only.

ITR 7 (ITR-7): ITR 7 form is filed by political party, hospital, medical institution, university, fund, news agencies, scholarly research association and other educational institution, college or university or commercial trust.

What does Zero ITR mean?

Another special thing is that only those people who come under the ambit of income tax do not have to file income tax return. Apart from the normal ITR, zero ITR form would have been a kind of ITR return, which is called Nil Income Tax Return filing. If a person is outside the tax slab issued by the Income Tax Department and still fills the tax return form, then it is considered as zero ITR filing. 

The post How many types of ITR forms are there, who has to fill which ITR form first appeared on Rightsofemployees.com.

The financial year 2023-24 has started. In such a situation, now the time for filing income tax return has come back. Salaried class people often use Form 16 to file ITR in India, but in many cases people can file income tax return without Form 16 as well. Form 16 is such a document through which the account of the entire taxable income of the employee can be obtained. It has been seen many times that the salary of some employees does not come under taxable income. In such a situation, the company does not issue Form 16 for them. In this case, you can file ITR without Form 16 as well.

What is Form 16?

Form 16 is an important document for filing income tax. In this document, the account of the entire income of the person is kept. From this it is known that how much money the person has spent in total. How much tax has been deducted and TDS information is also available in the financial year. In this, information about your investments etc. is also recorded.

ITR can be filed through Form 26AS-

If you do not have Form 16, you can get information about your TDS and TCS through Form 26AS. In this form, information about the person’s advance tax and high value transactions is available. Apart from this, you also need to have salary slip, HRA slip, proof of investment under Section 80C and 80D of Income Tax etc. Along with this, you will also have to deposit the proof of your home loan etc. After this you can easily file income tax return without Form 16.

How to download Form 26AS-

• If your salary does not come under income tax but you want to file ITR, you can download Form 26AS from the Income Tax website.
• For this, click on the e-file portal https://www.incometax.gov.in/iec/foportal/.
• Next you will see My Account option, click on View Form 26AS link.
• After this, select the assessment year in it and click on View Time.
• After that click on the download option and this form will be downloaded.

The post ITR Without Form 16: Can Income Tax Return be filed without Form-16? Know what is the rule first appeared on Rightsofemployees.com.

However, it has been seen many times that some people have to face a lot of delay in getting the income tax refund. In such a situation, after applying for income tax refund, its status can be checked with easy steps. Let’s know about it…

The post ITR Amount Update: Income tax refund money has come in the account or not? Do instant check like this first appeared on Rightsofemployees.com.

If you are a beneficiary of PM Kisan Yojana, then in any case get KYC done before 31st July. Its last date is also 31st July. Those farmers who will not be able to get e-KYC done, they will have to be deprived of the 12th installment.

If you want to take cylinder cheaply, then book it early. Actually, the prices of Cylinder are fixed on the first of every month. On August 1, Public Sector Oil Marketing Companies will decide the rates of cylinders. This time companies can increase the rate.

If you want to buy electric vehicle on subsidy then Goa government is giving you subsidy. Actually, the Goa government will give subsidy only on the electric vehicle purchased till July 31. 30,000 on a two-wheeler, Rs 60,000 on a three-wheeler and up to Rs 3 lakh on a four wheeler. For this, you have to buy an electric vehicle by July 31 and apply for subsidy.

According to the decline issued by the government, the last date for filing income tax return is July 31. If you will not file income tax return till this day, then you will have to file it later with fine. The government has not yet given any extension in the deadline for filing income tax returns. People who file ITR after the deadline will have to pay Rs 5,000 as penalty.

The post ITR Update: Complete this important work in two days, otherwise… first appeared on Rightsofemployees.com.

It is to be known that there is a provision to pay penalty for filing income tax return after the due date. The amount of fine may exceed Rs.5000. In such a situation, it would be good for you to file your income tax return before the last date, July 21. So that you can avoid paying the fine.

The post ITR Big News: Do this work soon before July 31, otherwise you will be fined Rs 5000 first appeared on Rightsofemployees.com.

If you have not done tax planning for the current financial year yet, then you must be doing so at the last moment. Although tax planning is a year-long activity, many people become aware of it only when the financial year comes to an end. This strategy is wrong as there is also a possibility of mistakes in tax planning at the last minute. Let us know about some such mistakes, which should be avoided.

Make a list of tax liabilities

Before doing tax planning, it is important to know what your tax liability is. To know about the tax liabilities, first of all it is important to know about your total income and your tax slab. There are many sources of income – salary, business, interest on deposits, capital gains on selling stocks or mutual funds, gifts etc. However, not every income is taxable.

investment return

Always be updated about the annual rate of return of your tax saving option. Be sure to match it with publicly available information about that option. Knowing about the returns, you will know how helpful it is to save tax by investing in it. Is this option beneficial or not, or there is a need to shift to some other option.

The post ITR Filing: The last date for filing income tax is near, do not make these mistakes in tax planning, otherwise there will be loss first appeared on Rightsofemployees.com.