New Delhi. Filing Income Tax Return (ITR) is a necessary process for millions of taxpayers every year. The ITR filing season for the financial year 2024-25 has started, but despite this, many misconceptions regarding tax still persist. People often take wrong decisions due to incomplete information and unreliable advice spread on social media. Knowing the truth of these myths in time not only helps in saving tax but also saves from future problems.
Myth 1: If TDS is being deducted from salary then it is not necessary to file ITR
Many salaried employees believe that when the company is already deducting TDS, then they do not need to file ITR. Whereas the truth is that TDS is just advance collection of tax. If your total income exceeds the exemption limit, it is your responsibility to file ITR. Only through ITR you can claim refund and carry forward the loss for future.
Myth 2: Only rich people have to pay income tax
This is the most common and misconception. Income tax is not related to wealth, but to your annual income. Freelancers, small businessmen, people earning from investments or having side income can also come under the tax net. If your total income is above the prescribed limit, then you are required to pay tax and file ITR.
Myth 3: ITR cannot be filed if the last date has passed.
Many people believe that after the due date, there is no option left to fill ITR. However, it is not like that. If you are not able to file ITR by the due date (usually 31st July), you can still file late ITR till 31st December. However, fine and interest may have to be paid. Therefore, there may be a delay, but the opportunity does not end.
Myth 4: Every gift received from family or friends is taxable
There is a lot of confusion among people regarding gifts also. According to the Income Tax law, gifts received from close relatives like parents, siblings or spouse are completely tax-free, no matter the amount. Whereas if the gift received from a non-relative is more than Rs 50 thousand in a year, then the entire amount becomes taxable. Therefore, it is very important to understand the tax status of the gift.
Myth 5: Tax saving investments are not necessary
It is true that making tax saving investments is not mandatory, but ignoring them can be harmful. Under Section 80C, you can get tax exemption of up to Rs 1.5 lakh by investing in options like PPF, ELSS, LIC premium. If planning is not done at the right time, you may have to pay more tax than necessary. Income tax related rules may seem complicated, but with correct information, ITR filing becomes easy. Instead of relying on rumors and incomplete advice, it is wise to get information from official sources or tax experts.
