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Must check before filing

the return of income

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The return filing season is on and for salaried employees
the last date for filing the IT return is 31st July, 2016 (for
returns pertaining to FY 2015-16). Timely filing of return is
a good practice and has many advantages too. However,
apart from timely filing it is very important to file correct
and accurate information. In this article we shall discuss
few important points to be kept in mind before filing the
return of income.
Selecting the correct return form
6 different forms are notified by Government for an
individual tax payer viz. ITR 1, ITR 2, ITR 2A, ITR 3, ITR 4
and ITR 4S. A taxpayer not having income from
business/profession has to select only from 3 forms viz.
ITR 1, ITR 2 and ITR 2A. Thus a salaried person not having
business/profession income has to choose amongst ITR 1,
ITR 2 and ITR 2A depending upon his/her income.
Providing correct and complete personal and other
details
Apart from providing correct personal details it is very
important to provide complete information which will
cover items like email id, telephone/mobile number,
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number,
passport number (not required if filing ITR

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Providing correct income details
Details of all the incomes earned during the year should be declared. It should be ensured that incomes
like interest on investments, interest on saving account, taxable gain on sale of shares/mutual funds, etc.
are declared in the return. The common mistake observed is omission to declare interest on saving bank
account, FDs, NSC, etc. If you have earned interest on saving bank account/post office saving account then
dont forget to declare the same in your return and on the same hand make sure that you claim deduction
upto Rs. 10,000 under section 80TTA (first you have to declare entire saving interest as income and then
claim deduction under section 80TTA of upto Rs. 10,000).
Declaring exempt income
Its true that exempt income is tax free, but it does not implies that exempt income is not to be declared in
the return of income. Non-taxable incomes like exempted allowances, dividends, gain on sale of listed
share after holding for more than 1 year, etc. should also be declared in return of income. Return forms
have a separate section for declaring the exempt income. It should be confirmed that non-taxable incomes
are reported in the section of exempt income and are not added with taxable income.
Declaring clubbed income
At times income of spouse/minor child is clubbed along with the income of taxpayer, in such a case it
should be ensured that the income so clubbed is included along with the income of the taxpayer and
declared in the return. In case of taxpayers filing the return in forms other than ITR 1, the clubbed income
is also to be declared separately in the details of income of specified person. For taxpayer filing the
return in ITR 1, it is sufficient if they just add the respective income along with their income (as there is no

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E.g. Mr. Raja has made a fixed deposit in the name of his minor daughter and interest for the year on this
fixed deposit amounted to Rs. 84,000. In this case, considering Mr. Rajas income more than his spouses
income, the interest of Rs. 84,000 on FD in the name of minor daughter will be taxed in the hands of Mr.
Raja and will be added along with his income. Exemption under section 10(32) is available upto Rs. 1,500
per minor and hence in this case net income of Rs. 82,500 will be clubbed (Rs. 1,500 will be reported in
the section of exempt income). Rs. 82,500 will be taxed under the head income from other sources. If he
is filing return in ITR 1 then he will add interest of Rs. 82,500 along with his income under the head other
sources. If he is filing return in forms other than ITR 1 then he has to add interest of Rs. 82,500 along with
his income and also needs to declare minors income so clubbed in the section of Income of specified
person (referred as Schedule SPI in return form). In both the case he has to declare Rs. 1,500 under the
details of exempt income.
Claiming all the deductions
A taxpayer is entitled for certain deductions from his income as specified under section 80C to 80U (few
major items are payment of life insurance premium, investment in PF/PPF, NSC, repayment of home loan
principal component, investment in tax saving pension plan, investment in NPS, payment of medical
insurance, payment of interest on educational loan, specified donations, etc.). While filing the return of
income, it should be ensured that all the deductions which are legally available to taxpayer are claimed in
the return of income.
Confirming the tax credit with form 26AS
This is a very important step which should never be skipped before filing the return of income. Form 26AS
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If there is any mismatch between the tax credit reflected in form 26AS and tax credit as per the
taxpayers actual data, then appropriate action should be taken to match the same. It is advised to file
the return only after matching the tax credit as per form 26AS with the actual tax credit for which
taxpayer is entitled.
Paying any due before filing the return
It should be confirmed that tax/interest payable (if any) as per the return of income should be paid before
filing the return of income and the details of such payment should be mentioned in the return of income.
Bank account for refund
If refund is due on returned income, then ensure that you select the correct bank account in which you
desire to get the refund. The refund of excess tax paid by you will be credited to the bank account opted
by you for credit of refund, hence, select only that account in which you desire to get the refund credited.
Declaring details of assets and liabilities
If the taxable income exceeds Rs. 50,00,000 then the details of assets and liabilities are also to be
provided in the return under the section referred as Schedule AL. The value to be reflected will be the
cost and the items are immovable property i.e. land/building, movable property being cash on hand,
jewellery, bullion, etc. and vehicles, yachts, boats and aircraft. Apart from value of above assets, any
liability attached to these assets is also to be declared.

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Details of foreign income

If you have earned income from outside India then ensure that the same is declared in your return of income
being filed in India in the section referred as schedule FSI and if any tax relief is available for foreign income
then provide the details of such relief in the section referred as schedule TR
Details of foreign assets
If you hold foreign asset then make sure that you provide the details of these assets in the section referred as
schedule FA.

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