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Explainer: Why it's important to mention all income sources when filing tax returns

Explainer: Why it's important to mention all income sources when filing tax returns

Explainer: Why it's important to mention all income sources when filing tax returns
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By Pradeep Suresh  Jul 10, 2018 5:40:25 PM IST (Updated)

The deadline for filing the income tax returns is just a few weeks away. However, many are struggling with how to file the returns for the last financial year without complications.

The deadline for filing the income tax returns is just a few weeks away. However, many are struggling with how to file the returns for the last financial year without complications.

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One common mistake that is being made by many is their failure to mention certain income sources during the filing.
This mistake, which may not be noticed during the filing, could create havoc during the filing process.
The incomes that should not be forgotten include income earned from banks in form of interest, income from bonds and income from post office schemes.
Rather than ignoring them, individuals should declare these in the ITR filing as ‘income from other sources.’
In case, the individual fails to show these incomes in their filing and if they turn out to be a sizable amount, then it could spell real trouble for the individual.
It could not only lead to a notice from the income tax department, but will also be counted as tax evasion. They could also be forced to pay extra amount as a punishment for late payment.
Even those incomes that are not taxable are to be mentioned in the filing. This includes dividends that is not above Rs 10 lakh and income gained from life insurance policies.
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