Keep these 5 things in mind while filing ITR, otherwise, income tax notice may come
Income Tax Return: While filing income tax returns, we miss many information. In such a situation, many times the Income Tax Department also sends notices to us. Let us know what things we should keep in mind while filing ITR.
The date for filing Income Tax Returns is fast approaching. If you too have not filed ITR yet, then you have to take care of many things while filing ITR.
Many times we do not pay attention to some things while filing ITR. Because of this, the Income Tax Department sends the notice. You should keep these five things in mind while filing ITR.
If you have made investments somewhere in the name of your children, then you will have to give this information while filing ITR. Although a bank account is opened in the name of the child, in this account, the parents are there as guardians. If you have invested in the name of your child and are getting interested in it, then it will be clubbed with your income.
For this reason, parents have to give this information at the time of filing an ITR. You can claim a deduction of up to Rs 1,500 after adding the child's income. If you do not give this information, then your child's name notice may come.
While filing ITR, you have to give details of all your investments. If you have invested in Public Provident Fund (PPF), then you have to give this information. The interest earned on PPF is tax-free. Its option is also given in the return, where you have to give information related to PPF.
You also have to show the interest earned from your savings bank account while filing the return. Many people think that this is a very small income, but you have to give information about every small income while filing the return.
After filing ITR, you can claim a deduction of up to Rs 10,000 annually under Section 80TTA of the Income Tax Act.
If you have made overseas investments, which can be in the form of direct equity holdings or foreign funds, or house property. You will have to disclose any such investment at the time of filing the ITR.
If you do not give such information, then you can get a notice. You will also need to show the income generated from your holdings. All taxpayers should pay attention to this.
If you are earning from interest, then it is very important to donate it. The total income from interest is also called Accrued interest. You get interest in this income but you get its benefit only after a period of time. This is the interest received from cumulative deposits or bonds. Such interest is paid only on maturity.
TDS can also be taken on such income. That's why you must give this information.