Filing Income Tax Return or ITR is one of the most important financial responsibilities for people with income above Rs 2.5 lakh. The government keeps making changing to the ITR filing process, making the task easier for taxpayers. However, you need to fill the form carefully as even smallest of mistakes could force the tax department to send a notice on your doorstep.
To begin with, you need to ensure that you fill the correct income tax form. The Central Board of Direct Taxes (CBDT) notifies new ITR forms for the relevant financial year. From ITR-1 to ITR-7, different forms have been prescribed to different types of taxpayers. As the forms are revised, several taxpayers end up filing the wrong form.
Of course, an important part is to complete the process before the deadline. The deadline for filing of original as well as revised income-tax returns for the financial year 2018-19 has been extended to November 30, 2020.
The due date for the income tax return for the FY 2019-20 has been extended to November 30, 2020, as well. The last date to file the belated income tax return is December 31. While one can file returns before or on March 31, 2020, as well, they will have to pay a hefty penalty. If you file belated ITR on or before December 31, you will be required to pay Rs 5,000 as penalty while filing it after December 31, but before or on March 31 will make you pay Rs 10,000 as fine.
According to the Income-Tax department, if you have filed your tax return but have not verified it, the return will be considered invalid. You can verify the ITR in five ways – net banking, Bank ATM, Aadhaar OTP, e-filing portal, Demat account and by sending a signed ITR-V or Acknowledgement receipt through the post.
Most importantly, you need to declare income from all sources which includes investments and interest earned on savings bank account. It is important that income under all heads of income be reported correctly. In case there is a discrepancy, you may get a notice from the tax department.