Income Tax Return Filing in chennai | Kanakkupillai

1. Challenges Taxpayers face while Filing ITR  www.kanakkupillai.com

2. ITR Filing • The process of filing income tax return (ITR) can become quite complex if you do not understand the implications of what you are filling in the form.  • When you file ITR make sure you are ready with all the correct information required because any inattention on your part can lead to a higher tax outgo.  • Kanakkupillai list 10 challenges taxpayers can face at the time of filing ITR and how to overcome them. 

3. Challenge 1: Which ITR to file?  • The income tax department issues seven ITR forms and which form you should use depends on your sources of income. • The number of forms can also change every year. The basic ITR form for most salaried people is ITR-1. • However, there are certain conditions that a person must satisfy in order to be eligible to file ITR1, therefore, all resident salaried individuals may not be eligible to file ITR-1. 

4. Challenge 2: Computation of taxable income  • There are several incomes which are tax-free and incomes from which deductions and exemptions are allowed.  • For instance, you may get incomes from multiple sources like fixed deposit interest, rental income from house property, savings account interest, income from short-term/long-term capital gains, etc. So, keeping a track of income from different sources to compute taxable income can become quite complicated. 

5. Challenge 3: Calculating deductions • You can save tax by claiming deductions from income up to Rs 1.5 lakh in a financial year under section 80C of the Income-tax Act, 1961. • This can be claimed by making investments in several financial products that allow section 80C benefit or by way of specified expenses like paying your child's tuition fee,etc

6. Challenge 4: Filling correct tax deducted at source (TDS) in ITR • You must also know that the TDS is not only deductible from your salary but also from other incomes such as interest income from fixed deposits. • Therefore, if the details entered by you in the ITR form do not match with Form 26AS, the return filed can be incorrect. Rectifying the same can be challenging. 

7. Challenge 5: Having multiple Form 16s  • Often it can become difficult to file your return if you have switched jobs during the financial year and even more so if you have invested money regularly during the year in tax-saving products. • In such a case, you not only have to take Form 16 from your current employer but also from the previous employer/s. 

8. Challenge 6: Not able to get HRA tax relief  • Calculating HRA exemption is important as it helps you in understanding how much exemption you can get from your income.  • If you are living in a rented house, you need to submit rent receipts, rent agreement, and Permanent Account Number (PAN) of the landlord which is mandatory if your yearly rent exceeds Rs 1 lakh with your company's human resource (HR) department. 

9. Challenge 7: Not submitting tax proofs to the employer on time  • If you have not submitted the tax saving-related investment proofs/documents to your employer on time, you will not get the deduction or exemption tax benefit from your salary income and these deductions will not show in your Form 16. • Hence in a scenario like this, you have to compute your taxable income carefully, filing an ITR with incomplete information can lead to higher tax outgo. 

10. Challenge 8: Forgetting/not knowing your password  • Many taxpayers are totally dependent on professional chartered accountants who take care of their ITR filing. Most of the time, their ITR accounts are also accessed by their CAs.  • A lot of us tend to forget our e-filing account's password since the account is accessed just once a year. In such a long span, generally, taxpayers forget their account's password. In a scenario like this, recovering the account can become onerous. 

11. Challenge 9: Not paying advance taxes on time • If your total tax liability is more than Rs 10,000 in a financial year, then you are liable to pay advance tax during the year. This advance tax applies to all taxpayers whether you are a salaried individual, freelancer or a businessman.  • You have to pay advance tax in quarterly instalments with 15 percent on or before 15 June, 45 percent (minus advance tax already paid) on or before 15 September, 75 percent (minus advance tax already paid) on or before 15 December, and 100 percent (minus advance tax already paid) on or before 15 March. 

12. Challenge 10: Last minute ITR filing  • Collating information from several sources and then filing ITR with correct information at the last minute can be taxing. • Unfortunately, if you have filed the wrong ITR, you will have to again file a revised one. • If you miss the due date for filing the ITR and file it later, then you will have to pay a late filing fee as applicable. 

13. ITR Filing in Chennai Get Guided by Experienced Tax Specialists in Chennai with Kanakkupillai.com - Discover ✓Certified ✓Experienced Income Tax Return Filing Form (ITR)  at kanakkupillai. Emerging tax conflict its a high end to file a tax without proper documentation. Set your foot at kanakkupillai Chennai's Leading No.1 Tax Consultants.

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