Whether or not you are filing returns this year, make sure the records are accurate

Before you sit down to prepare your income-tax returns, it is important to verify certain details. This is to make sure there is no discrepancy in the records with the authorities as regards your PAN, amount of tax paid, etc. So, even if you are not filling your returns this July, go through this list and have a make sure your records are in order:

Form 16

Look through your Form 16 and ensure that your PAN and assessment year have been correctly been mentioned. Also, it is important to check that the allowances paid to you which are exempt from tax have been shown as exempt - as Form 16s are electronically generated and are in lots, it is possible such mistakes are not noticed by the accounts department.

If you had submitted proof of deductions at the fag end of the accounting period, the possibility of such errors is higher. Consequently higher tax deduction will have been done from your salary. Verifying details in the Form 16 is important as your CA will rely on the figures mentioned in the form when filing your return and may not realise that some exempt allowances have been treated as taxable. In respect of excess tax deducted, the only course left open to you is to claim refund when filing your return.

TDS credit

Credit in respect of tax deducted at source is given to you based on the data available with the income-tax department. In case of some mistake on the part of either the bank or the deductor, incorrect credit would be reflected. Thus, you need to check that this is not so. To facilitate the process further, the income-tax department sends taxpayers Form 26AS through e-mail, containing details of all the taxes credited in their account. The tax credited to your account as shown in Form No 26AS includes tax deducted at source, tax collected at source and all the taxes paid by you either as advance tax or self-assessment tax. Verify that the tax deducted/ collected/ paid by you are correctly reflected in the statement. In case of any discrepancy, take up the matter with the concerned deductor and ensure that the errors are rectified and right tax credit is reflected. This will ensure that you will get a proper credit for the same by the time processing of your tax return is taken up by the department.

You can also access your Form 26AS online at https://onlineservices.tin.nsdl.com/TIN/ PanRegistration.do. You will need to register yourself for accessing the form.

Open a capital gains account

You should open this account before July 31 in case you have sold some long-term capital assets and plan to avail tax exemption by reinvestment. However, if you have not been able to utilise the entire capital gains before you file your tax return, you are required to deposit the unutilised portion of the money in the capital gains account with specified banks before you actually file your return. However, if you are not able to file your return by the due date applicable, then at least ensure that you have deposited the unutilised portion of the capital gains in the capital gains account - deposit in the capital gains account cannot be delayed beyond the due date.

Source: DNA Money