5 common problems faced by salaried employees while filing ITR; check solutions here

Salaried employees with annual incomes over Rs 2.5 lakh are required to file an Income Tax Return (ITR). There are various provisions in the Income Tax regulations that allow employees to pay less taxes overall. It has been reported that many employees, however, do not make use of these tax-saving provisions. From tax deduction to availing House Rent Allowance (HRA), here, we will discuss some of such provisions that can benefit taxpayers immensely.: Available tax deductions: A certain amount of tax deduction is available for salaried employees. The deductions that are available to them in addition to Section 80C of the Income Tax are mostly unknown to salaried workers. According to Sujit Bangar, the founder of Taxbuddy.com, in order to lower the tax burden, tax planning awareness needs to be built for the deductions including 80CCD(1B), 80D, 80E, 80EEA, 80EEB, 80G, 80TTA, 80TTB and 80U. HRA tax relief: Many workers frequently forget to give their employers their House Rent Allowance (HRA) documentation in a timely manner. As a result, the employer does not take HRA exemption into account when determining tax liabilities. It results in higher TDS deduction over the course of the year. However, there are several actions that can help the employee get rid of this issue. They are mentioned below: One should submit a declaration or proof of rent at the beginning of a calendar year. He/she must timely submit the rental agreement, rent receipts, and any other paperwork that the employer can demand. Even if he does not get HRA from his company, he will be qualified to take a deduction under Section 80GG up to Rs 60,000 for that year. Lesser TDS: If an employee switches jobs, the employer can often seek standard deduction and Basic Exemption. As a result, TDS will be deducted, and the employee will have to pay self-assessment tax and interest when filing their tax returns. In order to avoid this, the employee must inform his current employer of his income from a prior job in order for it to appear on Form 16 for TDS to be withheld as required. Report income as shown in AIS: If the Annual Information Statement (AIS) is not checked or there is a contradiction between the income shown in 26AS, a salaried individual can fail to report his income. “To ensure appropriate accounting of income, the employee should reconcile the figures with the employer and Form 16 if there are any discrepancies on Form 26AS. The salaried employee should also record all income that is shown in AIS, and if there is any inaccuracy, they should rectify it by giving feedback online or offline,” Bangar explained. Avoid additional interest and penalties: Numerous salaried employees assume that because TDS is deducted by their employer, they are not required to pay advance tax. However, at the time the return is filed, this results in interest and penalties under sections 234B and 234C. To avoid such an issue, an employee should inform the employer about all income other than the salary at the start of the year. As a result, before the conclusion of the fiscal year, 90 percent of the entire tax debt should have been settled. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.