Check out the incomes that you should always include while filing Income tax return:
Usually while filing Income Tax Return people forget to disclose their all incomes which often increases tax liability too. In order to avoid such a situation, you should be careful yo note all your incomes. Here are few incomes that individuals often forget to file in their income tax returns:
-
Saving bank account and fixed deposit interest
While filing income tax return the salaried people generally disclose their salary income or provide Form16 to their chartered accountant thinking that interest on the savings account is fully exempt. We all also end up believing that the TDS has been already deducted on their FD interest, there is no need to include them in ITR again. Though the banks deduct tax on fixed deposit interest but the TDS rate and the tax rate applicable in your case may be different. You must include it in your income and discharge the balance tax liability or claim a refund, as the case may be. Even in case you are entitled to a refund, you are still required to include the fixed deposit interest in your income.
-
Income of a minor child
Many people forget it but the income of a minor child is to be clubbed with the income of the parent whose income is higher. The income or interest earned by the minor on these investments is required to be included in the income of the parent. The income earned by minor by his own skills or efforts is not to be included.
-
Notional rental for deemed to have been let out property
For a self-occupied house, the taxable income is considered as zero. Though the option is available for one house property only, where you own and occupy more than one house, you have to treat any such houses as self-occupied and others are to be treated as deemed to have been let out. For the deemed to have been let out house, you need to offer the notional rental income for tax. Remember that notional rent is not the same as nominal rent. The income to be offered for the tax is the rent which is normally expected to be received for such property.
-
Capital gains for units of mutual funds switched during the year
Switching of units from one scheme to another scheme of the same fund is not shown in your bank statement and thus any profit or loss made during that time may gets unreported. The profit/loss on switching of units may be short-term or long-term entailing different tax treatment. Make sure to disclose profits/loss on such switching transaction to your chartered accountant for right and precise treatment.
-
Gifts or other benefits received by you in business
These days the discounts and gifts are not only provided to the customer but also to the businessmen. So a few of you might get a benefit from tangible and valuable gifts you receive. Since these items are not included in bank accounts and go unreported, you must disclose this to your CA.
