One needs to be careful while filling ITR. In case of mistake, the department can send a notice to the taxpayer. Apart from this, penalty can also be imposed if any irregularity is found in tax exemption claims or transactions, hence keep some things in mind while filing income tax return.
The Income Tax Department has started online and offline facility for filing Income Tax Return (ITR) for the financial year 2023-24. Taxpayers have also started filing ITR. Tax experts say that one needs to be careful while filling it. In case of mistake, the department can send a notice to the taxpayer. Apart from this, penalty can also be imposed if any irregularity is found in tax exemption claims or transactions, hence keep some things in mind while filing income tax return.
1. Depositing money into bank account
If you have deposited Rs 10 lakh or more in cash in a bank or co-operative bank in a year, then its detailed information will have to be given in the ITR. Failure to do so will put the taxpayer under the scrutiny of the Income Tax Department.
2. Purchase of property
If the taxpayer has purchased immovable property worth Rs 30 lakh or more in cash in a financial year, then the property registrar will inform the Income Tax Department. If the taxpayer does not disclose it in the ITR, the department can inquire about the cash transaction. The taxpayer will also have to provide information about the source of that money.
3. Paying Credit Card Bill
If the taxpayer deposits more than Rs 1 lakh in cash at a time in the form of credit card bills, the Income Tax Department can issue a notice and ask for details. Apart from this, if a credit card bill of more than Rs 10 lakh is paid in cash in a financial year, its source will have to be disclosed.
4. Buying shares and mutual funds
If the taxpayer invests cash in the stock market, mutual funds, debentures and bonds, then this information will also have to be given in the ITR. According to the rules, the department can inquire if more than Rs 10 lakh is invested in these in a financial year.
5. Giving cash in FD
If a taxpayer deposits more than Rs 10 lakh in cash in his FD in a year, he will have to provide information about its source. Therefore, to avoid notice, you can invest in FD online. With this the department keeps a record of your transactions.
Benefits of filing income tax return
1. You can claim tax refund only by filling ITR.
2. Can avail deductions and exemptions to save tax.
3. ITR is required to obtain a visa to go abroad.
4. It is needed to buy a policy with higher insurance cover.
5. Some government welfare schemes and subsidies can be availed.
