As the March 31 deadline for filing the 2023-2024 income tax returns approaches, there are several crucial warnings for taxpayers to exercise caution and meet the deadline to avail of tax benefits for the financial year.
According to The Times of India report, one of the primary advisories is to avoid last-minute filing, a reminder consistently emphasized by the IT department. The taxpayers can still submit a belated return within a year if they miss this cutoff.
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A critical concern highlighted by tax authorities is the prevalence of fraudulent emails. Taxpayers are urged to remain vigilant as the IT department never solicits OTPs, passwords, or other sensitive information through email or phone calls. The report added that this cautionary advice aims to protect individuals from falling victim to scams and emphasizes the importance of not sharing personal or financial details.
Another essential tip pertains to the taxation of interest earned on savings bank accounts. The report added that if the aggregate interest from all similar accounts surpasses Rs 10,000, it becomes taxable. Taxpayers are required to report such interest in their Income Tax Returns (ITR). This guidance ensures compliance with tax regulations and transparency in reporting financial transactions.
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For tenants paying monthly rents exceeding Rs 50,000, there is a TDS (Tax Deducted at Source) obligation at 5%. However, it’s essential to note that landlords receive credit for the TDS, and tenants cannot offset it against their tax liability. This clarification aims to avoid misunderstandings and encourages adherence to TDS regulations.
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To optimize tax savings, individuals can invest in various tax-saving instruments such as the Public Provident Fund (PPF), National Savings Certificate (NSC), National Pension System (NPS), and Equity Linked Savings Schemes (ELSS). These investments offer avenues to reduce taxable income while contributing to long-term financial planning.
