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Tax

Did you check these tax heads while filing ITR?

​Get ready to file your tax returnGetty Images
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​Get ready to file your tax return
ITR filing deadline for FY19-20 has been extended to December 31, 2020. Now that's almost two months away but time does fly and it is not a bad thing to get done with the task much in advance. An individual can file his/her income tax return by registering on the incometaxindiaefiling.gov.in or via private e-filing websites.

ITR filing does seem like a daunting task but in reality, it is not very complicated for most people. However, taxpayers with complex finances and many income streams may feel the need for professional guidance. Most of them are not aware of the finer points of taxation. A professional can ensure you file an error-free return. Here are a few points that individuals miss when they file tax returns themselves.
New tax breaksGetty Images
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New tax breaks
Certain new tax deductions have been introduced in recent years. These include the Rs 50,000 deduction for interest to senior citizens under Sec 80TTB, the standard deduction of Rs 50,000 to salaried taxpayers and increase in the deduction limit for medical insurance premium under Sec 80D.
New Form 26ASGetty Images
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New Form 26AS
From this year, your Form 26AS will also mention the high value investments and transactions carried out by you during the financial year. If you take help of a tax professional, he will ensure that the expenses and investments in the Form 26AS reconcile with the income declared in your tax return.
​Taxability of capital gains, dividendsGetty Images
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​Taxability of capital gains, dividends
Tax rules have also changed and long-term capital gains beyond Rs 1 lakh from stocks and equity funds are now taxable. Dividends beyond Rs 10 lakh are also taxable. A tax professional will ensure that the tax on capital gains is not missed when you file your return.
​Adjustment of capital lossesGetty Images
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​Adjustment of capital losses
Short-term or long-term capital losses made during the year can be adjusted against other gains. If you lost money in any investment last year, you can set off the loss against other taxable gains. Unadjusted losses can be carried forward to the next financial year.
Correct indexation valuesGetty Images
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Correct indexation values
Inflation can bring down your tax by adjusting the buying price of an asset to the inflation during the period of holding. The calculation is slightly complicated but a tax professional can help calculate the tax correctly.
​Tax-free incomesGetty Images
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​Tax-free incomes
Many incomes (such as PPF interest, dividends up to Rs 10 lakh and long-term capital gains of up to Rs 1 lakh from stocks and equity funds) are tax free, but still need to be declared in the tax return. Not mentioning this income may not invite a notice, but could prove tricky when the investments mature in future.
​Illness and disabilityGetty Images
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​Illness and disability
If a dependant suffers from any of the diseases specified under Section 80DDB, a taxpayer can claim a deduction. Dependants can include spouse, children, parents and siblings. If the taxpayer himself is disabled, he can claim deduction under Section 80U.

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