How salary employee file ITR Free? Or file self return filling Procedure?

Self Income Tax Return Filling is a very easy process only of Salaried Employee. But It has some Disadvantages:

Mistakes in filing income tax returns that may get you a tax notice 

You have to file your income tax return (ITR) with utmost care because even a small mistake can land you in trouble with the income tax department. You could end up getting penalised or even be served a tax notice.

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Here are nine mistakes that are often made by taxpayers.

1. Filing ITR using the wrong form 

As per tax laws, an individual is required to report all sources of income and file ITR using the correct form applicable to him. If he files it using the wrong form, then his filed return will be treated as 'defective' and he will be asked to file a revised ITR using the correct form. "In this case, the taxpayer will get some time to rectify the mistake. A rectified return (in response to notice u/s 139(9)) must be filed within 15 days from the date of receipt of the intimation under section 139(9). This time limit may be extended by the assessing officer on an application by the assessee. If the defect is not rectified within the time limit, then the assessing officer will treat it as an invalid return. In other word, it is same as not filing a return at all. Moreover,
the person may face all the penalties related to not filing of ITR in addition to payment of
interest u/s 234A for the delay in filing the tax return.

2. Not reporting interest incomes

One should report all the interest incomes received or accrued due to him in the previous
financial year (for which the return is being filed) while filing his tax returns. Individuals
generally forget to report interest earned from savings bank account, fixed deposits,
recurring deposits, etc. under the head 'Income from other sources'. While interest received or accrued on fixed and recurring deposits are fully taxable, one can claim tax relief on interest earned from savings bank account up to a certain limit. Section 80TTA of the Income Tax Act provides that interest up to Rs 10,000 can be deducted from the total interest earned in a year from bank and post office savings account after arriving at the gross total income. "Further if they have a saving account with any Post office then interest from such account is exempt up to Rs. 3500 (in individual account) and Rs. 7000 (in a joint account) under section 10(15)(i). This is in addition to 80TTA deduction.

3. Not filing income tax returns

Many people don't file their income tax returns because they have long-term capital gains
(LTCG) which are tax-exempt and without this their gross total income is below the taxexempt
income level.
However, as per recent amendments in section 139 (1) of the Act, if your exempted LTCG
along with gross total income exceeds the minimum exemption level, you are required to
file your income tax return.
For instance, let us assume that in a financial year your gross total income is Rs 1 lakh
and long term exempted capital gains is Rs 2 lakh. Earlier you were not required to file
income tax return as your total income was below the minimum exemption limit of Rs 2.5
Now due to the recent amendment in tax laws, you are required to file ITR as your gross
total income plus long term capital gains (Rs 1 lakh + Rs 2 lakh > Rs. 2.5 lakh) exceeds
the minimum exemption limit.

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4. Not clubbing incomes

As per the rules of clubbing of income, a taxpayer is required to add income of specified
persons (minor children, spouse, son's spouse, etc.) to his own income and the tax
payable by him is calculated on the total of this these two incomes. This is mostly the case
when the income of minor child is added to the income of his/her parent. Section 60 to 64
of the Income Tax Act specifies the provision of clubbing of incomes. "In the case where
minor's income gets clubbed with that of any parent, he/she can claim exemption up to Rs.
1,500 under section 10(32). In case if you miss reporting this income (of minor child) you
may have to pay the tax due, along with interest and you may even be subjected to a
penalty of 50% for under reporting or 200% for mis-reporting of your income (up to A.Y.
2016-17 this penalty was 100-300% of the taxes avoided).

5. Not reporting income from the last job

If you have switched jobs in a financial year then income from your previous job must be
reported while filing income tax return along with income from the current job. If any
income (from previous job) is not reported, then a discrepancy is bound to reflect in your
TDS certificates, Form 16 and Form 26AS. This is bound to bring you taxman to your door.
"Again the penalties are same as not clubbing of income.

6. Not reporting tax free incomes

As a taxpayer, you are duty bound to report all your income even if some is tax free.
Interest earned from provident fund or/and tax-free bonds in a financial year must be
reported in your ITR. However, you can claim exemption on these under various sections
of the Income Tax Act. These exempt incomes are to be reported in the 'Exempt Income'
schedule of the ITR.

7. Not reporting all bank accounts

From the assessment year 2015-16, a taxpayer is required to report all the bank accounts
held by him in previous year in his/her income tax return. Earlier you were only required to
mention a single bank account in which you wished to receive credit of the income tax
refund if any. However, now only dormant accounts are excluded from requirement of
reporting in the ITR.

8. Not declaring deemed rent/expected rent

If you own another house apart from a self-occupied house and it is lying vacant, then you
should report the expected rent in your gross total income. "This may result in some tax
payable as the notional rental gets added to your income and non -reporting may lead to
penalties as stated above. But in cases where there is interest payable on the housing
loan for the said property it can result in some tax savings. But this benefit of interest setoff
of loss from house property has been capped at Rs. 2 lakh starting 1st April 2017.

9. Failing to revise your income

If you have discovered any error once tax filing has been completed, then you must rectify
your mistake. You must file the revised return to rectify your mistake. Current income tax
laws allow you two years to file the revised returns. However, from the financial year 2017-
18, a taxpayer will get only one year after the end of the relevant financial year.
"It is always recommended that once the error is detected taxpayer rectify the mistake
within time, pay the due taxes with interest to avoid any penalty for under reporting or misreporting.
Also if you have missed claiming any deduction or exemption you can enhance
your tax refunds by filing the revised returns.

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