Reporting of interest and TDS found in Oint Account is often named after the first account holder, which can also give an income tax notice to the second holder. This happens when the FD or deposit is from the earnings of another member, but reporting is in the name of the wrong person. Therefore, it is very important to check the AIS i.e. Annual Information Statement carefully. If an entry does not match your earnings, then mark it ‘Not Entrely Correct’ through feedback. This provides correct information to the tax department and unnecessary notice can be avoided.

In the Income Tax Bill, the government has made a big change in Section 87A. Now in the new tax system, there will be a discount of ₹ 60,000 on slab income of up to ₹ 12 lakh, but this discount will not be applicable to special incomes like STCG and LTCG. Also, the standard deduction has been increased to ₹ 75,000, which can cost income tax-free of up to ₹ 12.75 lakh. The exemption in the old tax system will remain the same. In this video, know the difference between the new and old tax system and which one you should choose.

If you showed the wrong income while doing ITR file – inadvertently or intentionally – you can also be jailed with heavy fine! Income Tax Department has strong systems and strict laws to catch such cases. Under Section 270A, showing less income is 50% and intentionally misinformation is imposed. It is necessary to cross-check AIS, Form 26AS, TDS, GST and bank data. If a mistake is made, then Penalty can be avoided by filling updated return under Section 139 (5). The last date to file ITR is 15 September.