Mistakes To Avoid While Filing Your Income Tax Return::
Filine an income tax return (ITR) is mandatory for anybody earning an annual income of more than Rs 2,50,000.
In 2010, the government declared July 24 as the National Income Tax Day. This is just six days before July 31, which is the last date for filing an income tax return (ITR). It is mandatory for anybody earning an annual income of more than Rs 2,50,000 to file an ITR. On an average, an urban professional falls under the tax bracket right from the beginning of his or her career. Taxes and returns are a critical part of responsible financial management, and, hence, it is imperative to file a tax return before the due date.
How does an ITR help? Filing an ITR legitimises one’s earnings, and in case of excess tax paid to the government, one can always claim a refund. Even though it is not compulsory to file a return if the total income is below taxable limit, it is beneficial to do so. An ITR is the best document of proof of income. The process also makes one eligible for loans, since the ITR of the three years gone is what banks require to judge the payback capacity of the loan seeker.
Absence of an ITR can also reduce the chances of getting a visa to travel abroad. ITR also becomes imperative to obtain a high life cover insurance policy or high-limit credit card. With just about a week to go before the last date, it is best to file the return timely to avoid tax troubles.
Technical jargon and excessive paperwork can make filing an ITR seem tedious, but this is now easier than ever before and merely a few clicks away. To begin with, you need to have a few documents in place – PAN card, bank account details, Form 16, Form 26AS and proof of investments, which are useful for tax filing. All one needs to do is register on and follow guidelines. After filing ITR successfully, any excess tax paid will be credited to the bank account