11 Common Mistakes In Filing Of Income Tax Return
Posted on October 01 2020
In case the computation of income or refund is different than what had been entered or what is expected, please verify the accuracy of the data entered by you in the ITR. Except for limited number of complicated tax returns, for most taxpayers, the simple check points are the following:
Read on carefully for here is a list of most common mistakes people make while filing returns:
1) Not filing returns: The biggest mistake that most people make is not filing their income tax returns at all. Keeping in mind, it is important for you to file your ITR if your annual income is above Rs 2 lakh. The past limit was Rs 5 lakh.
2) Getting basic details wrong: People generally ended up entering the wrong PAN and TAN numbers in their forms. You should always double check all the details on your ITR forms, specifically the numbers and spellings.
3) Incorrect forms: Some major changing has been made on the ITR form this year. Make sure you are choosing the correct form i.e., the new one. There are seven forms where only four are for the individuals and are applicable depending on their situation. Keeping in mind, if you are choosing the wrong form then it will be considered by the IT department as a failure of filing your IT returns.
4) Filing multiple ITR forms for multiple form 16s: Changing of jobs is very common now a days, which means you are have multiples of Form 16s. One very common mistake that many of you’ll make is filing separate ITRs for each Form 16 whereas you can show all the Form 16s in a single IT return.
You should make sure that you submit all the relevant forms that your past employer has deducted tax from you, there is a chance for you to get a refund for the deduction made.
5) Mistakes in bank details: Silly mistakes made by tax payers are common whiling filling up their bank details in the ITR form, especially with the IFSC code of their respective bank. Refunds will not be made via cheques and only through ECS from this year. Therefore, it is essential to ensure that you submit the correct bank details, the correct 9 digit account number. Also make sure that the bank that the bank account which is provided by you on the form is an active account.
6) Giving the right correspondence details: Another common mistake which is often made is in the submission of email ids. Make sure you provide your personal email address other than your official email address. If you are changing your jobs, you will not be having the access to that particular email in the future, and might miss out on correspondence from the IT department. The same things go for your particular mobile number, always provide your personal mobile number and do not provide your official mobile number.
7) Failing to claiming deductions: One very common mistake is failing to claim tax deduction under Section 80 TTA, which was announced in the Union Budget a few years back.
According to this section, savings account interest income up to Rs 10,000 will get a tax deduction. Savings accounts in held in banks and India Post come under this section. Keep in mind, that this deduction of Rs 10,000 on savings account interest income is all bank accounts put together. You could miss out on a good tax benefit by ignoring this one.
8) Not listing all sources of income: Many tax payers generally think that the interest gained from savings and fixed deposit accounts is not taxable and the bank has already deducted TDS for that. Banks do deduct TDS on the fixed deposits, but that does not mean you will not mention your income that you have gained from those deposits in your ITR form. Failing in mentioning all the source of income may lead you in great trouble with the IT department.
9) Failing to mention commissions: Some times people forget to mention the commissions, for example, insurance commission where you have received some form of commission as a source of income. Make sure you mention it on the form.
10) Not keeping track of tax rule changes: Tax rules change every year and here are a few mistakes you might make inadvertently this year. Not mentioning details under Section 10 - that is giving details of various allowances you receive. You could also remember to claim deduction under Section 80 CCG, if you've invested in Rajiv Gandhi Equity Savings Scheme fund in the applicable financial year.
11) Not sending the ITR-V submission: Basically filing your IT returns online does not mean the work is done. Make sure that you send a physical copy of the ITR-V acknowledgement which the IT department had sends you to their CPC Banglore office within 120 days. Make sure that you sign the copy of the ITR - V in blue ink and then send the copy via registered post instead of use a courier.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.