With the extended Income Tax Return (ITR) filing deadline of August 31, 2019 inching closer, taxpayers are on their toes trying to collate all their income, deductible expenditures and investments to ensure that they file their return on time to avoid penalty as well as save the maximum possible amount of tax.
Filing tax returns is mandatory for those having a total annual income of over Rs 2.5 lakh or tax is deducted at source (TDS) from income. It is an annual activity seen as a moral and social duty of every responsible citizen of the country. It is a means to be aware of different investment options and their respective benefits.
More than the financial gain, it inculcates a sense of responsibility and opens one to financial education which is otherwise included in the regular academic curriculum in Indian institutions, unless one enrolls oneself specifically for it.
ITR filing is pivotal in making one financially responsible, and it only starts with such small steps which build up one to know more about investment options. There are number of tax saving options available to lower tax liability. Various tax savings investment options among others include PPF, NPS, EPF, Life Insurance Premium, tax-saving Mutual Funds (ELSS). In the following months, individuals should maximize their benefits at the end of the financial year with the filing of returns, timely. And finally, make sure to file the return before the deadline as late filing involves a penalty.
It is always recommended to be cautious while taking the filing procedure. One should be careful about all the details and update them accordingly. While filling the forms one should be careful about the name, as it should match to that on the PAN card. If there is a mismatch in the spelling or omission/addition of a middle name, the return will not be processed. One should be fully aware of the tax deducted over the financial year, the investments made and the value of the assets one owns.