Things to Keep in Mind in Order to avoid the penalty

In accordance with the Section 139 of the Income Tax Act 1961, a person needs to file ITR if their income comes under the preview of tax. The Income Tax Department has already provided ITR forms to file returns. While the last date to submit the form is September 15, it was set to 31 July earlier.

Updated Rules by the Income Tax Department

Under the new rules announced by the Income Tax Department, the ITR filers (old tax regime) will now have to provide more details and documents in order to get benefits under various sections. The new changes have specifically influenced sections 80C, 80D, HRA, 80EE, and 80EEB.

Changes made for Sections 80C and 80D

If a taxpayer wishes to save on PPF, EPF, NSC, or life insurance under Section 80C they will now have to provide more details, such as:

• Receipt number
• Account details
• Policy or Documentation ID
• Name of the person making the payment

House Rent Allowance Claim

If a person claims tax for paying rent, under the Section 10 (13A) they also need to provide information such as:

• The place of their work
• Date of HRA received or amount of rent being paid
• Rent Receipt
• Landlord’s name and PAN number

Documents required for claiming under Section 80E

Section 80E is used when a home loan or education loan is issued for a child, wife or husband. To claim this, a person must provide:

• Loan account number
• Interest payment certificate
• Name of financial institution
• Name loan bearer

Consequences of Giving Falsified Information

From now on, every claim is being cross-examined with the help of the AIS system. If a false claim is found, a penalty of 200% and an interest of 12% can be levied; the person can also be sentenced to jail.