There are hardly three days left for ITR filling and the government has changed the guidelines of return filling this time. Not only you have to mention your earning but you also have to declare your assets in the return. Here are few things you need to notice.
Declare your Asset this Time
There will be seven forms to fill instead of nine and one has to declare his/her asset which he/she has till the last day of the year. Ordinary citizens have to declare both movable and non-movable assets in India and abroad while non-ordinary citizens have to declare their assets in India. In Schedule AL of ITR form number 2, 3 and 4, member of Hindu undivided family that have an income of more than 50 lakh will have declare their assets.
Deposition of 2 Lakhs or more during Demonetization Period
If you have deposited two lakhs or more during demonetization drive then you need to declare it in the ITR form irrespective of your income. The column Part-E requires to mention the amount deposited during demonetization if it is above 2 lakhs.
Mentioning Aadhar Number and linking it with PAN
One also needs to enroll Aadhar number and link it with PAN before 31st August while filling ITR. If you don’t have Aadhar number then you can also mention the 28 digit enrollment id.
Filling correct ITR form with correct income
One has to fill the correct form or else he/she will receive a notice from the department for correction. One will be given 15 days to rectify such mistakes. You also need to mention the correct details of your income as per form 16 and 26AS. This includes income from the primary source, interest from saving banks, salary, fixed deposits, insurance and rents.
Filling Income Tax Returns and not clubbing the Income
If your income comes from long term capital gain then also you need to file income tax return. Currently you will get exemption if your income is less than 2.5 lakhs per year. Above this you need to pay tax. Clubbing of income should also be done into your own income if the source of income comes from minor.
Reporting of Income and linking all Bank Accounts
You need to mention and link all your bank accounts while ITR filling. Even if your income comes in tax free income category, you need to mention it. Earnings from provident funds are tax free after 5 years of service yet you need to mention the same while you file your ITR.
Income from Rents
It is necessary to mention the exact rent while you will earn while renting your house. There are various rules that are needed to be followed and there are different criteria for mentioning your income from rents.
Those who earn more than 2.5 lakhs per year should definitely file ITR in order to contribute towards nation building and be secured from any type of tax raids.