Some dates are branded into our memory, such as January 1st, December 25th, August 15th and July 31st, which is the deadline for tax return filing. As we are well into tax filing, taxpayers who have waited till the 11th hour can find themselves stressing, which itself can lead to errors being made while filing. Let’s look at some last-minute tax return filing tips to ease your burden.
First Breathe! Very rarely do people look forward to doing their tax return filing. So, before even starting to fill out your return form, Breathe!! Then think of all the things that you need to declare and submit and then get ready to start filing your tax return.
Do You Need to File?
Many salaried individuals share the perception that since TDS has already been deducted from his/her salary, there is no need to file his/her tax return. However, by filing your tax return you can claim eligible deductions, thereby reducing your taxes owing and quite possible get a refund for the taxes already deducted from salary.
Gather All Documents
Before you start filing, ensure all the necessary documents are at your fingertips, such as income statements (Form 16), Advance tax payment proofs, investment proofs, rental or house property agreements, filed foreign tax returns, if any, foreign income sources, if any, capital gains/losses etc.
Foreign Income Details
It is not an uncommon situation in present day society, for an individual to have a foreign source of income. If you have earned income abroad and have also paid taxes abroad on said income, then as per the Double Taxation Avoidance Agreement (DTAA), you can avoid paying taxes in two countries and also take advantage of provisions which enable you to reduce your tax liability and claim credits.
Verify Details Before Submission
The last thing you need is a notice from the Income Tax Department because you had made an error when filling out your tax return, or a delay in the processing of your return/refund due to errors in personal details. So before submitting your tax return, ensure all the details and calculations are accurate to avoid unnecessary complications.
Get it Filed
If you are not comfortable filing your return yourself online, you can always use a tax filing service provider, such as H&R Block India, to fill your tax return. A tax expert can ensure all information is accurately reported, including foreign income sources, investments, deductions etc., thereby reducing your chances of a notice/penalty from the Income Tax Department.
Have a Cup of Tea
Now that your tax returns are filed, you can relax because not only have you avoided penalties for non-filing, but have done your duty as a citizen by paying your taxes and filing your tax return. Feel good about yourself and relax with a cup of tea and remember to not wait till the last minute to file your taxes next year and to avail the help of tax experts to file your tax returns, to not only relieve yourself of the stress of e-filing your tax return, but also because experienced tax experts can ensure all deductions are availed of and maximize your tax savings with effective tax planning.