Last Minute Tax Saving Tips

The tax filing deadline is just 3 days away. You must be on your toes rushing around to file ITR before this deadline, and avoid a high penalty.

You must collate income, deductible expenditures and investments to file ITR within this deadline. If you are earning more than Rs 2.5 Lakhs a year, you must file ITR. (This is for citizens up to 60 years). It’s Rs 3 Lakhs a year for senior citizens between 60 to 80 years and Rs 5 Lakhs a year for super-senior citizens.

Is filing ITR difficult? We will help you there. You can now file Income Tax Returns absolutely free through IndianMoney.com. You just need to click on the icon “FREE Income Tax Filing before 31st Aug”, and file your income taxes in just 5 minutes. If you are stuck while filing income tax returns, you would get a call offering help to complete the tax filing process.

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Last Minute Tax saving Tips

1. Keep Documents Ready for ITR Filing:

Keep these key documents ready before filing income tax returns.

PAN, Aadhaar, Form 16, Form 26AS, Bank statements, Investment Proofs and details of assets if income exceeds Rs 50 Lakhs.

See Also: Income Tax Saving Tips

2. Take a Look at Income Tax Slabs:

Check tax regulations for the assessment year before filing taxes. Also look at the tax slabs and calculate the tax you pay.

Many people have this question? Do I file income taxes if my income is below Rs 5 Lakhs? Yes, you must file taxes even if your income is less than Rs 5 Lakhs. You pay zero tax, but you must still file ITR. It’s compulsory to file ITR if your income is more than the basic tax exemption limit.

3. Pick the Right ITR Form:

The IT Department has 7 ITR filing forms. You need to pick the right ITR form before filing taxes. If you file ITR with the wrong form the return is treated as ‘defective’. You would have to file the revised ITR. Don’t make this mistake even though there’s time to rectify the error.

See Also: 10 Easy Ways to Save Income Tax in India

4. Verify Details While Filing ITR

Be very cautious when filing ITR. Don’t forget important details and update accordingly. Make sure the name is filled properly and matches that in the PAN card. If there is a mismatch in spelling or any omission, the returns will not be processed. Be fully aware on the tax deducted over the financial year, investments made and value of the assets you own.

5. Don’t Misrepresent Facts:

If you have changed jobs, there is a chance of misrepresentation of facts. This may lead to faulty tax liability computation. You must first collect the information, sit at ease and then file taxes.  Don’t fall for tax saving and investment tips, if you are not sure of the source.

• There are a number of tax saving options to lower tax liability.
• Tax saving investments includes ELSS, PPF, 5-year Tax saver FD, NSC, SSY, EPF, POTD among others. You also get tax benefits on life and health insurance premiums, home loan principal and interest and so on.
• You have to file late ITR filing penalty of Rs 5,000 if you file ITR after August 31^st 2019 to December 31^st 2019. It’s Rs 10,000 if you file ITR after December 31^st 2019, but before March 31^st 2020.
• Take the help of a financial advisor if you can’t file tax before the deadline.

See Also: Income Tax Saving Tips For Couples

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