What precautions should be taken while filing the return of income?

Ans.  The followings are the important steps/points/precautions to be kept in mind while filing the return of income:

1) The first and foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income/ Loss (other than house property loss):

a. Losses cannot be carried forward.

b. Levy of interest under section 234A.

c. Late filing fees under section 234F is levied for return filed after due date. Late filing fee of Rs. 5,000 shall be payable if return furnished after due date. However amount of late filing fees to be paid shall be Rs. 1,000, if total income does not exceed Rs. 5 Lakh.

d. Exemptions under section 10A​, section 10B, are not available.

e. Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, are not available.

f. Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available. (From A.Y 2018-19)

2) Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.

3) Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P&L A/c (if applicable), etc.

4) No documents are to be attached along with the return of income. The taxpayer should identify the correct return form applicable in his case. Carefully provide all the information in the return form. Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.

5) Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.

6) After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income. In case return is filed electronically without digital signature and without electronic verification code do not forget to post the acknowledgement​ of filing the return of income at CPC Bangalore within 120 days of filing return of income.

7) Taxpayer should check the Annual Information Statement (AIS) after login to e-filing account. AIS provides the information about the prepaid taxes and prescribed financial transactions entered into by the assessee during the relevant previous year.

8) For details on e-filing please log on to https://www.incometax.gov.in/iec/foportal