Avoid common mistakes, figure out how to file returns if you invest in stocks and other concerns
The last date for filing income tax returns is on August 31, 2015. While the government has simplified tax returns forms after facing flak, there are still a number of things you need to watch out for if you haven't filed your returns yet.
Here is a list of things to keep in mind, cross-check before the crucial date:
Mistakes to avoid when filing I-T returns
When filing tax returns individuals don’t declare certain income or assets because they do not realise these items are taxable. This can create problem in the later years. Some essential things that you should not forget to include when filing returns.
If you are a salaried person who trades in stocks, filing income tax returns can be a tricky job. Depending on the instrument, frequency of trade and volume, you can either fill the ITR-2 form meant for the salaried with no business income or ITR-4 is for income from business and profession. Which is the right form for you?
Tax filing for professionals
For professionals and freelancers with a small turnover and limited clients, the lengthy ITR-4 form can be confusing. Some tips on filing returns.
Made a mistake while filing tax?
There are many individuals, who after filing their income tax returns realise there was a mistake in the form or the data submitted was not correct. They need not worry. Here’s how to revise your tax filing.
What happens if you delay filing tax returns?
Those who missed the deadline for filing tax returns can do it by the following March 31. Belated returns can be filed on or before two years from the end of the relevant tax year. However, it comes with its limitations.
What should you do if I-T department declares returns as ‘defective’
Returns can be termed as 'defective', if details provided are incomplete, without audit information or supporting documents. But the person receiving such notice needs to act quickly as individuals are given 15 days time only.
Legal heirs need to file returns for deceased
It's not only the living who have to pay their taxes. If one of your family members has died during the financial year and she/he was liable to pay tax, you might need to file a return on his or her behalf. In most cases, the individual's spouse or eldest son/daughter assumes the status of legal heir or representative.
With the last date for filing Income Tax Returns fast approaching, most tax payers are probably in the midst of doing so. But what if your income is below the taxable limit of Rs 2.5 lakh per annum? Should you still file tax returns?
Illustration: Uttam Ghosh/Rediff.com