The last date to file taxes, July 31st, is fast approaching. I am sure you have already filed Income Tax Returns. If you have not, it’s time to hurry up and do so.
You have to pay a penalty of Rs 5,000, if you file ITR between August 1st 2018 and December 31st 2018. If you file ITR after January 1st 2019 and March 31st 2019, you will have to pay Rs 10,000 as a penalty.
Before filing ITR, there are some simple things you need to know. Let’s take a look at some of these simple things on tax.
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Form 16 is a certificate issued by your employer, showing the TDS deducted and deposited with the Government. You need this information to file ITR.
Form 16 (Part A):
Form 16 (Part B)
When you file Income Tax Returns, the tax officer matches the entries in Form 26AS with the ITR filed. Do check your Form 26AS online, and make sure there are no mismatches with Income Tax Returns (ITR) and the Form 26AS. Form 26AS gives details of various taxes which have been deducted from your income. You need this to file ITR. You can assess the Form 26AS from the income tax website.
Take a look at Form 26AS to understand where tax has been deducted on your income. You also get an idea of the taxes, paid on your behalf by the employer, banks and so on to the Government. Form 26AS also has the details of deductors like banks, who have deducted TDS. You get their names and TAN (Tax Deduction Account Number).
If you have got any tax refunds in the relevant financial year, you will find them in Form 26 AS.
If you buy an immovable property, you have to deduct TDS from the amount you pay, to the person who sold you the property. This will show up in Form 26AS.
Let’s say you are a resident Indian and receive rent in excess of Rs 50,000 a month. Then the payer (the person who pays you the rent), has to deduct TDS on this rent, before he makes the payment to you. Details of tax deducted will show up in your Form 26AS.
Any high value transactions like purchase of an immovable property, buying of high value corporate bonds and the purchase of costly mutual funds show up in Form 26AS.
Let’s say you have paid advance taxes in a financial year. These details will be reflected in the Form 26AS.
You have to verify the details in the Form 26AS and bring any discrepancy in details to the notice of the tax deductor. Any tax mismatch would bring the taxman to your doorstep.
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