GET IT RIGHT: All persons who are resident for tax purpose have to furnish details of all foreign bank accounts even if it has zero balance in it
Since the deadline of July 31, 2019, for income-tax returns (ITR) filing is fast approaching, we should not commit the mistakes we generally make while filing the ITR form in a hurry.
Basic contact details
Since the I-T department nowadays sends all the communications to your email id and/or on your mobile number, it is very important for you to have these details updated in the income tax department website as well as while filling the ITR form. This is specifically important in case you have changed your mobile number or emailed recently. You should never furnish the email id provided by your present employer in case you are salaried as the same may no longer remain relevant and accessible in as and when you change your present job.
Bank account details
Since the I-T refunds are generally directly credited to your bank account, verify that the bank account details furnished in the ITR form are of an operational account. In case the details furnished by you in the ITR forms are incorrect, the refund bounces back and then request for reissue of the refund has to be made online after correcting the details of your bank accounts. You have to be really very careful while you keying in the details of your bank account for getting the refund credited. In case you are planning to close any of the existing bank account like the salary account of an earlier employer, do not give the details of that account.
Details of TAN of the tax deducutor and taxes paid
Nowadays you are not allowed to attach/upload any document with your ITR, including the TDS certificates for claiming the TDS credit. You are given credit for TDS on the basis of TAN of the deductors as per the details reflecting in your form number 26AS. Though the details of TDS are pre-filled in some of the ITR forms, you have to be careful while submitting the details of the deductors in case the details have to be submitted manually. So in case you commit any mistake in mentioning the TAN number of the deductor in your ITR, you will not get the credit for such TDS at the time or processing of your ITR and thus unnecessarily having to make request for rectification of mistake.
Likewise, in the case of advance tax and self assessment tax paid, you have to furnish the details of such payments like challan number and BSR code for such payment. So in case there is any mistake in furnishing these details, you may not get the credit for these payments at the time of processing your ITR. This may result into reduced refund or a notice of demand for payment.
Details of capital gains
The schedule of capital gains for ITR forms is little difficult due to many columns to be filled. In respect of any capital gains transaction you are required to pay the advance tax for capital gains on such transactions on the date of advance tax falling due after such transaction. In the ITR form you have to give a break-up of capital gains on the basis of due dates of advance tax. So you have to be very careful while filling up the break-up of the capital gains in the schedule, else you may have to pay higher interest than what is due. Likewise, you have to provide a break-up of the short-term and long-term capital gains on the basis of rate of tax applicable, you need to be extra cautious while filling up these details in the relevant schedule of the ITR form. Any mistake will result in wrong tax liability.
Details of foreign bank accounts
Many young people go abroad either for the purpose of education or on deputation or for onsite job. While being in a foreign country you may have to open a bank account there. It may so have happened that you forgot to close the bank account while coming back even though not leaving a substantial balance in the account. As per the present tax laws all the persons who are resident for tax purpose have to furnish details of all foreign bank accounts even if in cases of zero balance in the account. In case you are resident of India and otherwise eligible to use ITR 1, you should not use ITR 1 in case you have any bank account abroad even if it has no balance.
The writer is a tax and investment expert.
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