Posted on September 30 2020
There are four things that you should keep in mind before filing the I-T returns this year:
1. TDs is deducted by the employer from the salary and issuing a Form 16 but this does not absolve you of your responsibility to file your Income Tax Return.
2. If you have missed the I-T return filing deadline of 31st of July then you can still file a belated return within a year. For example, belated return for the financial year (FY) 2017-18 can be filed by 31st of March, 2019.
3. The Interest in your saving bank account is taxable if the cumulative interest from all such accounts is more than 10,000. If interest is less than 10,000, you still require to report this in your income tax return. If you are a senior citizen then the interest up to 50,000 is not taxable from FY 2018-19.
4. Tenants who pay rent of over 50,000 per month should deduct TDS at 5%. But your landlord will get the credit for the TDS and you cannot set it off with your tax liability.
How to deal with an I-T notice
Have you received a notice from the tax department? Do not panic, find the reason behind the notice that you have received:
1. Inspect the type of notice received
Complete v/s limited scrutiny notice: In case of complete scrutiny, the I-T officer can request for any information or documents with regard to your income tax return , whereas in a limited scrutiny, the I-T officer hikes a few questions.
Intimation for processing of I-T return: Analysis whether all the income and the taxes are mentioned in the intimation which is matching with the return filed and whether any balance tax is payable or a refund is due to you.
Adjustment of refund against demand of previous years: Analysis the reason for which a demand has been hiked.
2. Analysis the time limit
A scrutiny notice is generally served within 6 months from the end of the FY in which the income tax return is filed.
3. Classify the type of response required
The notice will determine whether you can file your return online either e-filing portal under 'E-proceedings', or via email. You require to file the response within the given time limit set in the notice or else you may require to pay a penalty of Rs. 10,000.
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