The Income Tax Department has clearly stated that if you give wrong information in your return, then a penalty of up to 200% of the tax due can be imposed. Apart from this, 24% annual interest can also be charged and a case can be filed under section 276C. This means that a small mistake or false claim can put you in big trouble.

To avoid this, it is important that you fill in your income and deduction details correctly. Here we are going to tell you which common mistakes you should avoid and how you can avoid the penalty.

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These are some common mistakes made in ITR which can cost you heavily…

• Claiming 80C deduction without bills or proof
• If you do not have proof of the money you have spent on things like LIC, PPF or tuition fees, then that claim can be rejected by the tax department.
• Opting for the old tax regime first and then switching to the new one
• There is a deduction benefit under the old tax regime, but if you later choose the new regime, all those benefits are lost.
• Claiming HRA without rent agreement or PAN of landlord
• If you are claiming HRA, you must have proof of rent and PAN of the landlord.
• Disclosure of personal expenses as business expenses
• If expenses like mobile bill, food or travel are personal, then it would be wrong to show them as business expenses.
• Hiding freelancing, crypto, or side income

If you have earned any kind of extra income, hiding it can prove costly. It is necessary to report every income source.

What to do to avoid penalty?

• Make sure to keep proof of the item on which you are claiming deduction and it should be genuine
• Match your income with your Annual Information Statement(AIS)
• Declare every income source
• File ITR before the deadline

Keep these things in mind related to ITR

If the department finds out that you have knowingly given wrong information, then there will be no benefit in filing a revised return. Also know that even if the CA or consultant makes a mistake, the responsibility will be yours. Even if someone else has filed the return, according to the law, the accountability lies with the taxpayers. These rules apply not only to salaried people but also to employed people, freelancers, professionals and businessmen, i.e. everyone.

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The post Taxpayers Alert: If you show fake deduction in ITR, you will be fined up to 200%, keep these important things in mind first appeared on Rightsofemployees.com.

If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

The post New ITR Rules: ITR rules income Tax return forms for FY-2021-22 Taxpayers have to give these information first appeared on Rightsofemployees.com.

If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

The post New ITR Rules: ITR rules income Tax return forms for FY-2021-22 Taxpayers have to give these information first appeared on Rightsofemployees.com.

If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

The post New ITR Rules: ITR rules income Tax return forms for FY-2021-22 Taxpayers have to give these information first appeared on Rightsofemployees.com.