Income Tax Notice : Do not make this mistake even if you forget, otherwise your parents will get income tax notice
In view of the situation created by Kovid-19, the Central Government has extended the deadline for filing Income Tax Return (ITR) till 31 December 2020. While filing ITR for you and your parents, take special care of some things or else your parents may have to bear the brunt of your mistake.
new Delhi. In view of the Corona crisis, the time for filing Income Tax Return (ITR Filing) has been extended till 31 December 2020. In other words, taxpayers still have the opportunity of tax saving. However, your parents may have to bear the brunt of a small mistake made in the box to save tax. The Income Tax Department (IT Department) can send an Income Tax Notice (IT Notice) to your parents on your mistake. To avoid this, special care needs to be taken while filing your parents’ income tax returns. Let’s understand what mistake you have to avoid.
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Hire taxpayers get tax rebate on HRA
Tax Exemption can be taken on HRAs under certain limits under section 10 (13A) of Income Tax Act (IT Act). Tax exemption on the amount received under HRA can be claimed by the same working person whose salary includes house rent allowance and he lives in a rented house. The salaried taxpayer has to give a rent receipt every year within the time specified by the company. If you have not yet been able to give the Rent Receipt to the company, then you can reduce your tax liability while filing your income tax return. Actually, any employed person can avail tax exemption with the help of House Rent Allowance (HRA) included in his salary.
if notice of rental income is not shown, then notice will be fixed
In order to save tax, the servicemen living in their parents’ house also take advantage of tax exemption in HRA by applying rental receipt. Under the Income Tax Act, if a working taxpayer resides in his parents’ house, then he can avail tax exemption on HRA for rent payment. It is to be noted here that your parents must show this income in their tax returns. If they did not show the income from the rental they received from you in their ITR, then they are sure to get an Income Tax Notice. Also, keep in mind that taxpayer cannot claim tax exemption benefit from HRA if he is not a serviceman.
Might be stuck with this fault is your income tax refund
after the ITR processing (ITR Processing) on tax liability loss through rent receipts in ITR tax It takes about a month to get the tax refund. In general, ITR processing takes 2 to 3 months to complete from Centralize Processing Center (CPC), Bangalore. Explain that in an e-mail sent by the Income Tax Department, information is asked from taxpayers about their outstanding demand, any difference in their bank account and refund. If your information is not given at the right time, your refund can get stuck.
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