As the last date or the deadline for your income tax return filing is coming near, often taxpayers are found confused regarding how to deduce their taxable amount. Often, many opt for income tax return filing services. With the introduction of the e-filing, you could do it sitting inside the comforts of your home.
But keep in mind that not waiting for the last minute would help you in the long run by providing you with extra time and fewer errors. The last-minute rush in could often prove to be hard on the server. Many are unable to submit their income tax return file or pay the amount. Thus, here are some tips to help you have a smoother experience.
- Opt For E-Filing: When you would be filing online for your income tax return, the chances of errors would be less. Due to the use of mandatory checks, you have to mention all the necessary details before you can proceed further. And, after the information has been verified, and if any mistakes are found, you would be informed about it. Also, any income tax return with a refund must be filed online.
- Reporting Bank Accounts: When you would be filing your income tax, you must mention all your account details while you would be filing it. This is a must that has been advised by the tax-income department. Your bank account would consist of your IFSC code, bank account detail numbers. Also, you should mention whether the account is savings or current. If there is a bank account that has not been operational for the last three years, you should be citing all your bank accounts other than that.
- Report Any Foreign Income or Asset: When you are filing an income tax return, if you have any foreign income or asset, you must report it too. Even if it is not taxable, it should be mentioned at all costs. Some of these will be your foreign bank accounts, stocks if you have any foreign companies.
- Form 16 for Salary Income: Your employer would always provide you with Form 16. This would contain in detail the salary that you have been paid along with how much tax had been deducted from it. It is usually issued every year before the next financial year begins. Taking professional income tax return filing services helps everyone in getting things organized. Always ensure the tax-income department has authorized them.
- Reporting Interest Income: Nowadays, everyone has multiple bank accounts and is part of saving schemes so that they could earn some extra interest. All these must be reported with your total income. Many do not report on which the TDS has been deducted. But you should nevertheless mention it.
Always ensure that your income tax return has been filed successfully. Therefore you should e-verify it. You are required to verify your tax returns online via the income tax department with the help of net banking by generating an OTP. Otherwise, it would not be considered to be filed successfully. When you keep these tips in mind the overall process would become a smooth one for you.