Finding A Fine Balance In Tax Returns

Some respite for harried taxpayers. The due date for filing of income tax returns for Financial Year (FY) 2019-20 has been extended to December 31.2020. Those filing revised or belated returns will however have to file by November 30, 2020. This extension comes with an opportunity for delinquent filers. Taxpayers who have already filed their tax returns for FY18-19 are given an opportunity to revise their returns. One must ensure savings bank, fixed deposit interest, rental income, capital gains and dividend incomes are correctly disclosed. Indian residents also need to declare their overseas income, if any. In the event of double taxation, a credit for taxes paid overseas may be claimed and any changes in the foreign tax credits claimed may be considered for revision. Matching income and taxes reflected in Form 26AS with the income tax return is important. Also, omission to offer...