*The following are the extract from the Departmental Central Processing Center's News Feb 2010 Issue. So, this may be use full in detecting mistakes / filing the return of income for next AY. *
* * *Common mistakes in filling up Income Tax Return (ITR) form that result in reduction of refund or additional tax demand during processing by the Income Tax Department- AY 2008-09. * * * *Reasons for mistakes in calculation of Income*. The accurate and complete filling up of the relevant column or detail in the Income Tax Return (ITR) form is most crucial for cor-rect calculation of income by the Income Tax Department. As a general principle during processing, in case of any inconsistency between the values as entered in the Schedules and the cross-referenced values in other Schedules or Totals / Summary in PART B-TI, * * *for Incomes, the higher value may be taken and for Expenses, Losses or Deductions, the lower value may be taken * for final computation of Income. In case of e-returns using Department software these inconsistencies will not arise. However, if you are using other commercially available software for return preparation, please contact the software provider in case of such inconsistencies. In case the computation of Income or refund is different than what had been entered or what is expected, please verify the accuracy of the data entered by you in the ITR. Except for limited number of complicated tax returns, for most taxpayers, the simple check points are the following: * * *Salary *from all employers, irrespective of whether Form 16 has been issued or not, should be entered in Item 1 of ITR 1 or details in Schedule Salary in ITR 2. Additionally, the final amount of Salary should be entered in Item 1 of Schedule Part B TI- Computation of total income in ITR 2. The same amount should be entered in Schedule CYLA- Current Year Loss Adjustment in the row ‘Salaries’, below column (i) in ITR 2. * * *Interest *income from fixed deposits, savings bank account etc should be entered in Item 2b of ITR 1 or Item 1b of Schedule OS-Income from Other Sources in ITR 2. The total in Item 2c of ITR 1 and intermediate totals in Items 1e, 1g, and 3 of Schedule OS-Income from Other Sources in ITR 2 should be correctly entered. Additionally, the final amount of Income from Other Sources should also be correctly entered in Item 4a and the total in Item 4c of Schedule Part B TI in ITR 2.The same amount should be entered in Schedule CYLA- Current Year Loss Adjustment in the row ‘Other sources (incl. profit from owning race horses)’, below column (v) in ITR 2 * * *House Property Income *should be entered in Item 1a, Municipal taxes paid should be entered in Item 1c and the intermediate total should be entered in Item 1e of Schedule HP-Income from House Property in ITR 2. A flat deduction of 30% of the amount in Item 1e is the only deduction permissible for repairs and such expenses and this should be entered in Item 1f. Deduction for Interest on housing loan should be entered in Item 1g and is restricted to Rs 1,50,000 for ‘Self Occupied’ house. Therefore, correctly Tick þ if the house property is ‘Let Out’ for rent. Accordingly, the final value of Income from House Property should be entered in Item 1i. In case of multiple house properties, details of *each *house property have to be entered completely as mentioned above. Additionally, the final amount of Income from House Property should also be correctly entered in Item 3c of Schedule HP and the same value should be entered in Item 2 of Schedule Part B TI in ITR 2. In case, the value in Item 3c of Schedule HP is Negative i.e. net result is a loss, then the value without the negative sign should be entered in Schedule CYLA- Current Year Loss Adjustment in the row ‘Losses to be adjusted’ below column 2 in ITR 2. -- http://finance.groups.yahoo.com/group/aaykarbhavan/ http://groups.google.com/group/aaykarbhavan http://finance.groups.yahoo.com/group/It_law_reported/ http://groups-beta.google.com/group/fun-finder http://finance.groups.yahoo.com/group/le-vech/ http://tech.groups.yahoo.com/group/groups_master/ -- Receive free SMS of finance updates and alert at mobile Cost free ----- aaykarbhavan:News about the aykarbhavan http://labs.google.co.in/smschannels/subscribe/aaykarbhavan ----- Good and Clean funny, informative motivational SMSes http://labs.google.co.in/smschannels/subscribe/rajkumarsms ----- Gandinagar, News about Gandhinagar , Gujarat http://labs.google.co.in/smschannels/subscribe/Gandhinagar ****** Or Join it by sending SMS go to write messge in your mobile type "on aaykarbhavan" / "on rajkumarsms" and sen it to 9870807070 Me on net : > >>>>>>>>>>>>>>>>>>>>> http://rajkumaratthenet.blogspot.com/ http://itronline.blogspot.com/ Virus Warning: Although the I have taken reasonable precautions to ensure no viruses are present in his email, sender (I) cannot accept responsibility for any loss or damage arising from the use of this email or attachment." -- You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. 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