The ITR filing season is upon us! Don't we all want the process to be smooth and stress-free? However, not everybody finds it easy and hassle-free. Employees, in particular, need assistance given the complexities related to forms, errors, deadlines, penalties, and more.
During our recent Parichay ‒ Ask the Expert webinar, CA Ruchika Bhagat, Managing Director, Brooks Consulting Pvt Ltd, gave us practical and insightful answers to all our questions. She also answered a variety of queries posed by the attendees.
If you missed the session, don't regret it. We have the webinar recording below. We have also taken the highlights of the conversation for your convenience. Read on!
What are the different types of ITR forms available?
ITR 1, ITR 2, ITR 3, and ITR 4 are the main types of forms used for ITR filing. The form to be used depends on multiple factors. However, the type of assessee, sources of income, and total income of the person are the main criteria for making this decision.
How can we make the ITR filing process less stressful?
Whether IT filing is stressful or not, it is a mandatory process. To make it smoother, assessees must keep all the information and documents ready. It’s also essential to calculate the tax liabilities accurately and finish the task before the ITR filing last date. Nowadays, many portals help calculate income tax. Even the official income tax portal provides that option. Many of these portals also help decide between new and old regimes by indicating the one that is beneficial.
What are the most common errors in filing ITRs?
Some people don't disclose their total income while approaching their auditors; they may not know that the information is available on Form 26AS. Nowadays, all the information is available online. Any incorrect personal information, income disclosure, or claim of deduction could lead to penalty or prosecution.
Filing delay is another issue. People should file their ITRs within the specified deadlines. The ITR filing last date for individuals is July 31, 2024. Any delay will result in interest accrual and penalty payments. Any delay beyond a point will result in a loss due to cancellation of refunds.
What are the precautions to avoid mistakes related to deductions and exemptions?
It is important to keep all the invoices ready while claiming allowances from the employer. Also, if the house rent is more than INR 1 lakh, the landlord's PAN number is mandatory. Similarly, it is imperative to deduct the TDS of the landlord if the rent exceeds INR 50,000 per month. The deduction can be made on a monthly or yearly basis. Apart from this, care must be taken to ensure that there are no double deductions for the same benefit in a different section.
Are there any tax benefits for gifts provided by an employer?
If the value of the gift received is INR 5,000 or less, it is exempt under the law. This exemption is considered a perquisite provided by an employer and not considered under Section 10 for gift tax. If the total value of the gifts is more than the aforesaid amount, taxes will apply.
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