How Should I Check Our Income Tax Return Filed Correctly Or Not?

How Should I Check Our Income Tax Return Filed Correctly or Not?

Have you duly file an Income Tax Return? The last date for filing income tax returns is around the corner and now the question arises if you have filed an ITR, then have you filed it correctly and if you are still left to file it, then how to ensure that everything goes perfect?

Now you must be wondering how would I know if I have filed a correct ITR and left no way to be questioned by the Income Tax Department?

So, we have prepared a list of questions along with answers which will help you to be sure about the accuracy of the ITR filed by you. The answers will tell you whether you have chosen the correct form or not and which Income Tax Return form has to be filed by you? And much more. The correctness of the answers to the questions will conclude whether you will be able to escape the income tax department radar or not.

Q1. When should not I file an ITR?

When my income falls within the exemption limit after claiming tax deductions.
When my gross total income is less than the exempted limit of Rs 2.5 lakh.
When there is one of the two cases given above, then I do not need to file ITR.

Answer: If your gross income (total income) before deductions is less than the exempted limit of Rs 2.5 lakh, then you will not have to file an ITR. However, if your tax liability falls below the limit after deductions, you will have to file a return by downloading free Gen Income Tax software.

Q2. Which ITR form do I have to fill, if I am salaried and the income tax from other sources is only LTCG 50,000 on stocks?

There will be no tax on long term capital gains (LTCG) from shares up to Rs 1 lakh, so ITR 1 form (Sahaj) has to be filed.
ITR 2 has to be filled to show capital gains on stocks.
ITR 3 has to be filed to show income from a market-linked investment.

Answer: As long as you are benefiting in the form of Long Term Capital Gains (LTCG), you have to fill ITR 2 form. In case of income from F&O, ITR 3 has to be filed.

Q3. If the primary holder of our joint bank account is the wife, then who should pay the tax on the interest?

Different tax will be payable on the contribution made by both.
Details will be given, based on the withdrawal of both.
Wife is primary holder, so the details will be furnished in her ITR.

Answer: Different tax will be payable on the respective contribution made by both.

Q4. Will the details of the income from FD have to be furnished, despite the TDS deduction?

If needed, the details of this income has to furnished and additional tax has to be paid.
Refund has to be claimed if it is a tax-saving FD
I do not need to furnish its details because tax has already been paid on it.

Answer: Even if you have paid tax on the interest of FD, you will have to furnish its details in ITR and re-check your tax liability. Those coming in a higher slab of 30% will have to pay additional tax as only 10% TDS will be deducted on it.

Q5. I transferred the house to my wife. How can I report rental income?

This will be reported in the wife's tax return as the house is her property now.
It is not taxable because the gift given to the spouse does not come under the tax purview.
I will not have to report the details of this income because the tax has already been paid.

Answer: Husband will have to pay tax on any asset transferred to his wife without any consideration. The rental income will be added to the husband's income and tax will be payable on the marginal rate.

Q6. How can I set off the short term loss incurred from the shares which I purchased last year?

Against short-term and long-term capital gains tax on stocks and equity funds.
Against interest and rental income and other capital gains.
Against short-term or long-term gains from a capital asset.

Answer: Short-term losses incurred from the shares which I purchased last year can be set off against short-term or long-term gains from a capital asset. Long term losses can be set-off against long term gains and capital losses can be set-off against capital gains.

Q7. Which of the following income is not required to be filed in income tax return?

PPF withdrawal amount, because it is tax-exempt.
Interest income of less than Rs 1500 on FD in the name of minor child.
Interest income below Rs 10,000 on savings account.

Answer: An interest income of less than Rs 1500 on FD in the name of a minor child is tax-exempt and does not need to be reported in the ITR. However, other tax-free income has to be reported in ITR under the exempt income.

Q8. Will the amount of Rs 45,000 which I spent on the health of my senior citizen parents come under the tax exemption?

I can claim up to Rs 25,000.
If there is no cover in the health insurance policy, the deduction can not be availed.
Although this amount is not covered in the health insurance policy, additional deduction can be claimed on it.

Answer: If your parents do not have health cover, you can claim additional deduction up to Rs 50,000. This amount is separate from the amount of health cover premium of Rs 25,000.

After answering all the above questions, you can check whether you are saved from coming on the radar of the tax department or not? Your scores will decide that, so let's check the scores:

Score: 0-3 (Will not be saved): If your score falls between 0-3, then you do not know much about tax filing. You may get a notice under section 139 (9), that is, a defensive return notice.

Score: 3-6 (maybe saved): You have good knowledge of tax filing, but you need to pay more attention so that there is no lapse.

Score: 7-8 (yes, saved): You are up to date and have complete information regarding tax filing. Keep an eye on the changes in the rules every year and keep yourself updated.