A common misconception held by many salaried people is that since TDS (Tax Deducted at Source) has been deducted by their employer from the income earned, so they do not need to file income tax return.
The actual case is however not so. Salaried individuals have to file returns even if their tax has been deducted at source and they have no other sources of income or have no tax liability to be paid.
Also e-filing of Income Tax Returns is mandatory for a company and a firm liable to audit under section 44AB of the IT Act.
Some important tips a person should remember while filing tax returns are as follows:
Type of ITR form to be filled:
A person should know which ITR form to fill out of the eight ITR forms available. The forms differ in the different ways in which a person earns income.
Mention the income which is exempted from tax:
A person should put a mention of even those incomes which are exempted from tax such as long term capital gains on equity, dividend received on mutual funds etc.