You may presume that you only have a salary as your income if you are a salaried individual. In the form of interest, income can come to you from your bank account. Still, need to report it although even if you don’t have to pay tax on that income. There are various reasons why you might miss out on mentioning your income or wrongly report the income. Here are some points that one should consider before filing for ITR.
REPORT LONG-TERM CAPITAL GAINS IN YOUR ITR
A liquidation of equity shares or units of equity-oriented funds that generated in long-term capital gains must be reported in your income tax returns (ITR). “These are taxed at a concessional rate of 10% on the gains in excess of ₹1 lakh without providing the benefits of indexation.
If your total gains are less than ₹1 lakh, those must also be reported. Those who have reinvested their receipts from the sale of mutual funds or equity shares into a similar asset or any other asset must report the sale transaction in their tax returns and pay capital gains (short-term or longterm as applicable). Long-term capital gains on debt fund are taxed at the rate of 20% after indexation. You must add short-term gains from debt funds to your overall income. They are subject to short-term capital gains tax (SCGT) as per the income tax slab you fall under,” stated Archit Gupta, founder, and chief executive officer.
TAX D LOWER TDS DEDUCTIONUE MAY EXIST OWING TO
You may still see that there are unusual taxes due even if tax is subtracted on salary and tax deducted at source (TDS) is given on your interest income. If you offer your permanent account number (PAN), TDS usually get deducted at 10%. The TDS has been subtracted at a lower rate if you are at a higher tax slab rate. This means that you have to deposit the remaining tax after calculating. It gets reflected after individual pay the tax due, either online or offline.
REPORT ALL YOUR INCOMES
You may pretend that you have to report income from salary as a salaried individual since your primary source of income is your salary. Though you may think that the amount is less, you still required to inform the income even if you don’t have to deposit a tax. The individual will get a statement of your interest income from your bank routinely. However, at the least, you may also get income in the sort of interest from your savings bank account.