ITR Tips: Be sure to give this information in your ITR, do not make this mistake at all..

It is necessary to give information about all exempted income in the ITR, even if it is not taxable. This makes the data on the entire income of the taxpayers reach the Income Tax Department. It is also necessary to give information about the categories in which an exemption is available in the ITR. This can easily solve any tax-related problem.

There are more than 50 such categories in Income Tax, in which taxpayers get tax exemption. For example, income from agriculture is exempted under section 10 (1), interest on tax-free bonds under section 10 (15), gifts received from a relative under section 56 (2), and the interest amount of Rs 10,000 in a savings bank account comes under the exemption category under section 80TTA. However, all the exempted categories have limits, and different criteria have been set for them by the department. For example, gifts of more than Rs 50,000 from non-relatives are taxable. Meaning, tax will have to be paid on it.

Disadvantages of not giving information about the exemption
If a taxpayer does not give concrete information about the exemption, then there can be trouble during data matching by the department. If the tax department finds any discrepancy while matching the papers. If there is a mismatch, then a tax notice can be issued by the department for clearance. In some cases, if the department later finds a part of the exempted income to be taxable, then interest or a penalty can also be imposed for not giving information. However, there is no immediate penalty for not disclosing exempted income due to a genuine mistake, but if someone does this intentionally and later it is considered taxable, then action can be taken against them.

Penalty for wrong information
In such cases, this amount will be added to the total taxable income, after which the tax burden increases. Along with this, a penalty can also be imposed under section 270A.

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