Have you filed your Income Tax Returns?
If not, you should file your taxes before the due date to avoid late fees (Rs 5,000 to Rs 10,000).
Do you have some confusion over the filing of IT returns and are avoiding to file the returns? That may not be very smart.
Common misconceptions – Income Tax Filing
I do not have all the details regarding my tax returns
Some people are confused about the form to fill, the income details that have to be entered or some other information. There are a lot of tax experts – online and offline who can help you with this. Your financial advisor should be equipped to handle your queries too or at least guide you to the right person.
But even if you are still not clear, go ahead and submit the form. You can always request a rectification or file a revised return when you realise there has been a genuine mistake.
Read – Income Tax Filing FAQs
I do not fall in the income tax bracket and so I am saved from filing IT returns
If you are a person who
- earns at least Rs. 2,50,000 per annum
- wants to claim income tax refund
- wants to carry forward capital loss
- wants to apply for loan or a visa/ work permit
then you are responsible for filing your IT returns before the due date.
I have already paid taxes and so my work is done
This is the biggest misconception people have. If you have paid taxes in the form of the employer deducting tax, banks deducting TDS etc., it means you have paid tax but that has to be recorded with the IT department in the form of the completed and verified IT return. You have to file your IT returns irrespective of whether you have paid all tax, are not liable for any tax or have paid excess tax.
It is important to file your tax returns for the following reasons –
You will be liable to pay a penalty if you do not file your IT returns.
If you do file returns after the due date and realise that you have to pay tax, you will have to pay interest on the tax as well as a penalty for late payment. This is an unnecessary expense.
You will have some time frame to revise your tax returns. If you file it late, it is difficult to revise the returns.
In many cases, IT returns documents are required while applying for a loan, applying for a visa/work permit and for registering property (land, house).
You can file your returns with the help of an online or offline tax expert or your financial advisor. Alternatively, you can go to the Income Tax Website and file it on your own.
Even if it is late, incomplete, mistake-prone or you have less income
- Better Incomplete Filing Than No Filing
- Less Income does not mean No Filing
- Better to file with mistakes than No Filing
- Better Late Than Never
I have kept this post short because this was just a reminder to everyone who are still not sure about filing. If you have any questions related to Income tax filling – add in the comment section.