Check pre-filled data, watch out for errors in reporting capital gains

Misclassifying gains as short or long-term, ignoring grandfathering provisions can trigger a notice

- SANJEEV SINHA

The tax-filing deadline of September 15 is fast approaching. If you have not begun the process yet, start now to avoid last-minute stress and errors.

Collect essential paperwork Essential documents for filing income-tax return (ITR) include Form 16, Form 26AS, the annual information statement (AIS), capital gains statements, bank interest certificates, and proofs of tax-saving investments under sections 80C, 80D and 80G (if you have opted for the old tax regime). PAN, Aadhaar, and updated bank details must also be in place. Businesspersons, professionals, and landlords should have complete records of income and rent.

Look up Form 26AS and AIS Match income details using Form 16, AIS, and Form 26AS. "Reconcile AIS and Form 26AS with personal records to confirm that tax deducted at source (TDS), advance tax, and tax credits are reflected correctly," says Sofiya Syed, direct tax division, Dewan P N Chopra & Co.

Capital gains, dividend income, and interest must also be cross-checked for accuracy. Enter deductions under Sections 80C, 80D, and 80G correctly. "Include exemptions such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and home loan interest," says Abhishek Soni, chief executive officer (CEO), Tax2Win.in. He advises checking pre-filled data to avoid discrepancies.

Prepare a personal checklist covering documents, income sources, deduction proofs, tax credits, and deadlines. "A check-list reduces the risk of missing out on benefits, last-minute errors, repeated corrections, or notices. It acts as a ready reference and brings discipline," says Syed.