Last day to file income tax returns: Here are 10 things to keep in mind

1. ITR forms have been reduced from 9 to 7

For financial year, 2016-17, the Central Board of Direct Taxes (CBDT) has made some relevant changes to the ITR forms. To make the process less tedious, the number of ITR forms have been reduced from nine to seven.

Earlier, there used to be three forms: ITR-2, ITR-2A and ITR-3, now all these are now have been now replaced by just one form, which is ITR-2. Consequently, ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam), respectively.

2. Necessary to quote Aadhaar number

Now, you have to quote the 12-digit Aadhaar number or the 28-digit Aadhaar enrolment number while filing the income tax return. The CBDT has mentioned that tax payers need to mention Aadhar Number to file returns.

3. Mention cash deposits after demonetisation

If you have deposited more than Rs 2 Lakh in cash in your bank after demonetisation, it has to be reported in the tax return. The Income Tax Department has already got details (name, address, PAN) of the cash deposited by individuals. This information can be matched with the ITR. In case there is a mismatch in the reporting, the individual can expect a notice.

4. Include interest and other income in return

Almost all of us have bank accounts, fixed deposits, and some of us also hold post office savings account. All of these earn interest which must be reported in your total income while filing return. But many tax payers do not report this interest income in returns thinking that  tax has already been deducted by the bank. But it has to be disclosed in your return. You don't have to pay tax again on it, whatever TDS has been deducted on it can be claimed as a deduction from your total tax payable amount.

5. Disclose foreign assets and income

This has caused a lot of problem for taxpayers who have been abroad in recent years. You have to give details of your foreign bank account's holding status (both as an owner and as a beneficiary), account opening date, interest accrued during the year and schedule and field number under which the same income is reported. Any misreporting of foreign assets can put you in trouble.

6. Form 16 and Form 26AS

All of you salaried people must have received Form 16 by your respective employers by now. Form 16 has all the details regarding your salary and taxes deducted on it.

Form 26AS is a document that a salaried individual should access before filing tax returns. This is a tax credit statement which includes all taxes received by the Income Tax Department, the same can be accessed from the tax department's website: incometaxindiaefiling.gov.in

If you have paid taxes on your income or tax has been deducted from your income, the Income Tax department already has these details in their database.

Form 26AS can be downloaded from the income tax website.

7. Bank Accounts

You are required to disclose your bank account number along with the IFSC code. However, dormant accounts which have been in use for the past three years or more need not to be mentioned.

8. Report Exempt Income

Earlier there was a single column to report your exempt income. New columns have been inserted in the ITR forms to specifically report dividend income and long-term capital gains exempt under Section 10(34) and Section 10(38) respectively.

9. Mandatory disclosure

According to the Income Tax Department, you have to disclose information of cash deposited in their bank account aggregating to Rs 2 lakh from November 11 to 30 December, 2016.

Besides that, if any assessee has any unexplained income or investments, he has to report such unexplained income in the new ITR forms and such amount will be taxable at the tax rate of 60 percent plus surcharge and cess.

10. Additional information

In the Finance Act, 2016, a new schedule was introduced that required individuals or Hindu Undivided Families (HUFs) having income of more than Rs 50 lakh in a year to declare the value of their assets and liabilities. This included information like cost of immovable property, jewellery, vehicles, bank and cash balance.

Further, new fields have been inserted in the forms to disclose interests held in the assets of firms, or association of persons as a partner or member.