When filing income tax returns as a salaried individual in India, it is important to take certain precautions to ensure accuracy and compliance with tax laws. Here are some key precautions to consider:

1. Maintain Proper Documentation: Keep all relevant documents, such as Form-16 (provided by your employer), salary slips, bank statements, investment proofs, rent receipts, and other supporting documents ready for reference and verification.

2. Verify Form-16: Cross-check the details mentioned in Form-16 (issued by your employer) with your own records. Ensure that it accurately reflects your income, deductions, and tax deducted at source (TDS) information.

3. Declare All Income Sources: Include all sources of income in your tax return, including salary income, income from other employments, rental income, interest income, capital gains, etc. Failure to disclose any income may lead to penalties or legal repercussions.

4. Claim Eligible Deductions: Familiarize yourself with the deductions available under the Income Tax Act, such as deductions for investments in specified instruments (e.g., life insurance premium, provident fund, National Pension Scheme contributions), home loan interest, medical insurance premium, and other eligible expenses. Ensure you claim all relevant deductions to minimize your tax liability.

5. Reconcile TDS and Form-26AS: Verify the tax deducted at source (TDS) amount mentioned in your Form-16 with the details available in your Form-26AS (consolidated tax statement). Any discrepancies should be addressed with your employer or the relevant deductor before filing your return.

6. File within the Due Date: Be mindful of the income tax return filing due dates and ensure you file your returns within the prescribed time limit to avoid penalties or interest on late filing.

7. Review and Validate Information: Double-check all the information entered in your tax return, including personal details, income details, deductions, and tax computation. Incorrect or inconsistent information may lead to tax notices or delays in processing your return.

8. E-Verify your Return: After filing your tax return online, make sure to e-verify it through the electronic verification code (EVC) or other approved methods. Failing to verify your return may render it invalid.

9. Preserve Documents and Acknowledgments: Keep copies of the filed tax returns, acknowledgment receipts, and supporting documents for future reference. Maintain these records for at least six years from the end of the relevant assessment year.

10. Seek Professional Assistance if Required: If you find tax filing complex or have specific tax-related queries, consider consulting a qualified tax professional or chartered accountant for guidance and assistance.

It is essential to stay updated with the latest tax laws and regulations in India to ensure accurate filing and compliance with the income tax provisions. The above precautions serve as general guidelines, but it is advisable to consult a tax professional for personalized advice based on your specific circumstances.

By CA Pradeep Verma