New Delhi: All persons with an annual income of more than Rs 2.5 and a life expectancy of less than 60 years must file an Income Tax Return (ITR). Senior adults with an annual income of less than Rs 3 lakh are excluded from filing an income tax return, according to the government.
If their only source of income is pension and interest on deposits, super senior people (those over 75 years old) do not required to file an ITR. Meanwhile, the ITR filing deadline has been extended by the Central Government once more.
Tax returns can now be filed until March 15th. The deadline for filing income tax returns for the assessment year 2021-22 has been extended to March 15, 2022, according to the Central Board of Direct Taxes (CBDT). Previously, ITRs could be filed until December 31. If you haven't submitted your ITR yet, do so as soon as possible.
Don't make these mistakes in ITR filing
The income tax return date for the fiscal year 2020-21 (AY 2021-22) is March 15, 2022. While filing an ITR, it is critical to remember a few key points. Because minor blunders might lead to major problems in the future. As a result, these errors should be avoided.
1. It is important to show the interest received on the savings account
The majority of consumers are unaware that interest collected on their savings account must be reported as earnings on their ITR. This is where they go astray. Interest generated on savings accounts up to Rs 10,000 is tax-free under Section 80TTA of the Income Tax Act. The exemption under section 80TTB is Rs 50,000 for older citizens. In addition, interest income must be reported in the ITR.
2. It is necessary to show the interest received from FD
Interest on fixed deposits is taxed under the Income Tax Act. As a result, it is vital to demonstrate an interest in ITR.
3. Filling of Wrong ITR Form
Depending on the source of income, multiple ITR forms are available. As a result, it's critical that you select the appropriate income tax return form based on your source of income.
4. Forgetting e-Verification
People frequently believe that their work is finished after filing an ITR, however e-verification is also required. E-verification must be completed within 120 days of the ITR filing deadline. If you don't do this, your ITR will suffer. E-verification can be done in a number of ways. This can be done using your Net Banking account and your Aadhaar OTP.
5. Not understanding the new and old tax system
A new tax structure has also been adopted by the administration. With the former tax system, deductions and exemptions were available; however, in the new tax system, deductions and exemptions are no longer available, although the tax rate is lower. You should evaluate the two tax systems to see which one is more favourable to you, i.e., which one would save you the most money. After that, file your tax return.
6. Dividend income not disclosed
Dividends earned from stocks or mutual funds were previously tax-free. However, beginning in the fiscal year 2020-21, dividends derived from equities and mutual funds would be taxed according to the tax slab. As a result, you must also include the dividend income in your ITR this year.
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