File ITR may not be as handy as you thought. If you wish to file your Income Tax Return, then you will have to keep your all the necessary documents by your side. Here are the things you cannot afford to miss while filing your Income Tax Return: –
Do not misreport your Income
Remember these, if you wish to file ITR
This is one of the most important things, that first-time tax filers should avoid doing. You should never misreport or underreport your Income as it can land you in some major trouble. If Income Tax Department catches you, you will have to pay a heavy penalty. You cannot hide your transactions and income from the Income Tax Department, due to which they will eventually catch you if you ever misreport your Income.
Another important thing that you will have to keep in mind while filing Income Tax Return, is the Form your fill to file your ITR. You must choose the correct form. In all total, there are 7 Forms that a taxpayer can use to file their Income Tax Return. Choosing the wrong form is one mistake that most first-time filers make. It is compulsory for an individual to file income tax using the form applicable to him/her. Using a wrong ITR form to file a return may invite a notice from the Income Tax Department, and the filed return will be considered invalid. In a case where a wrong form has been selected, the individual will get a window to file a rectified return, which must be done within 15 days from the date of receiving Income Tax notice.
You Must File ITR
It is important for every individual who has the income to pay Income Tax if you pay Income Tax you must also file Income Tax Return. People with income below the taxable level avoid filing income tax Return but this usually lowers your financial credibility and creates problems at the time of applying for loans and other important documents. It is not mandatory to file Income Tax Return if your income level is lower than the taxable amount, it is a good practice as it is closely monitored by the authorities.