The last date for filing income tax return, August 31, means a lot of tension for those rushing against time to complete the procedures. Though it’s always better finish the process well before the due date, there are times when it is not possible to do so due to unforeseen circumstances.
If you haven’t yet filed your tax return, here are a few factors you should keep in mind while completing the procedure on the last date.
Income not received
There may be some incomes that you haven’t yet received, but they still need to be included at the time of filing I-T return. This could be something as simple as fixed deposit interest accrued but not yet received. This will not show up in the bank account. So, listing out the total income just by looking at bank accounts might not be the best way to go about.
The income earned but not yet received should be listed only after looking into the entire list of investments. This will ensure correctness of the calculation.
There may be a case where a deduction is available to the individual on the completion of investment in a specific area. There are also benefits available in areas like payment of tuition fees where the figure can be added to the list under Section 80C of I-T Act where a total benefit of Rs 1.5 lakh is available.
One must ensure that all the eligible amounts are taken into consideration and are added up for the purpose of claiming tax benefit. In doing so, the total limit available will be utilised effectively. It will also ensure that no additional amount is wrongly invested at the last moment.
There are small items like savings bank interest, recurring deposit interest or even interest on post office investments, which many people ignore while doing their calculation. A benefit is now available for savings bank interest — Rs 10,000 can be claimed as deduction. One should always consider all the smaller items that might usually be overlooked while calculating taxable income.
Generally, people always give a lot of attention to the ‘income’ angle, thereby missing out on another significant area. It is the ‘tax deducted at source’ (TDS). It is vital to take the TDS into consideration while filing tax return. It will give you the right amount of credit in the tax return. By checking the figures, which have been claimed with the statement in AS 26, the taxpayer will be able to ensure that he/she has availed full tax benefits.
(The writer is a CA and a certified financial planner)...