The government closely monitors your income. There are so many instruments available today that the government can instantly discover your hidden income if you try to conceal any of it. Anyone with income that exceeds the established threshold must file their income tax. You risk getting into trouble if you ignore IT’s warning.
If you must file an ITR because you fall under its jurisdiction, there are a few things you must bear in mind. People frequently lack the ability to focus on minute details, and the Income Tax Department then sends them letters as a result. Therefore, bear in mind these five points if you plan to file an ITR as well. If you have invested money in your kids’ names, then this has to be mentioned while filing ITR.
Typically, a bank account is opened under a minor child’s name; nevertheless, with these accounts, the parents act as guardians. It will be included in your income if you get interest from investments made in your child’s name. Parents must therefore demonstrate this in their income. Add the minor’s income to the total to claim a deduction of Rs 1,500.
Additionally, when submitting an income tax return, that income must be disclosed. If you have money invested in a PPF, the interest you earn on that money is tax free. However, you must provide information in the form of an ITR. This is given a spot in the return where you must demonstrate such income.
When completing tax forms, taxpayers occasionally fail to include interest income from savings accounts. They consider what impact this meagre income will have. It’s not like that, though. Such income must also be disclosed in ITRs. Up to Rs 10,000 must be claimed as a deduction under section 80TTA after being reported in the return.
If you invest abroad, whether it be through direct share holdings, foreign funds, or real estate. Then, while completing an ITR, you must disclose such an investment. The income from holdings must also be demonstrated in addition to this. Taxpayers should take particular note of this. Total interest income translates to collected interest. That money that is earned but not received is this. This is the interest earned on bonds or cumulative deposits that is only paid upon maturity. TDS may be applied to such earnings. Consequently, it is essential that the investment be displayed in the ITR.
So, if someone while filing their ITR, keeps above things in their mind, they will be expecting a tension free life in case of their ITR.
