If you think your only income of the year is the salary you receive and the interest you receive on your savings account or FD, you are absolutely wrong. Income doesn’t only mean your salary or interest earned on savings. There are a lot more things that come under the income section. Many of my clients commit the same mistake of not listing out their full income and, to stop you from committing the same mistakes, I have curated a list of tax deductions things that come under the income aspect of the income tax department.
- Income with no TDS deduction.
- Gifts received in the FY.
- Interest earned on the PPF account, savings bank account, or your RDs?
- Maturity proceeds from LIC or PPF, or EPF during the FY.
- Interest earned on tax-free bonds or NCDs during the FY.
- Smalls gifts received
- interest on RD or PPF or EPF
- Dividend on shares
- Interest on tax-free bonds
- Maturity proceeds from LIC
- Sale from shares
Now that you know the list of income you need to mention in the income tax return, are you disclosing your full income in your income tax return?
If your answer to this question is NO then, you are doing it wrong. While filing your return, you need to disclose all your income, including the one which is exempt from tax.
You need to report your income even if no tax is deducted
To make listing out your full income a bit easier, run through your bank accounts for money received and where your money is going. Know what investments you have made in the past year and the return on that income before filing the income tax return.