PRECAUTIONS TO BE TAKEN AT THE TIME OF FILING OF ITR TO ENSURE CORRECT AND TIMELY PROCESSING OF RETURNS
- Keep monitoring Form 26AS online over TRACES on periodic intervals for early trapping of the inconsistencies therein, if any due to fault of deductor.
- Follow the procedural guidelines prescribed by Rule 37BA, wherever necessary.
- Reconciliation of disclosed Income with Form 26AS.
- Claims for TDS of earlier years on account of difference in method of accounting i.e. deductor following mercantile and deductee follows cash system. In such cases it should be ensured that the SCHEDULE-TDS is properly filled up specifying that the financial year in which TDS has been deducted by the Deductor.
- There should not be under reporting / mis-reporting of Income in Return or claims to avoid penalty u/s 270A.
- Deductions claimed from Capital Gains in earlier years on account of investments (i.e. Capital gains investments in capital gains scheme account for subsequent investment) and no subsequent investments made thereafter in the time specified.
- Claims and deductions under Chapter VIA should not be made out of exempt income/non-taxable income.
- Voluntary disallowance u/s 14A, if applicable may be computed and shown in the return.
- Voluntary offer of income u/s 68, 69, 69A, 69B, 69C, 69D in ITR to get immunity from penalty u/s 271AAC, etc.