With e-filing of Income tax return government has simplified filing income tax. However, people still make a bunch of mistakes while fining their income tax returns only to see their return rejected.
Here is a list of 11 common mistakes people do while filing income tax return that must be avoided.
- Waiting till the last date
Since almost everyone wants to go ahead and file their return on the very last day at the very last hour, the website becomes hyper loaded. Filing at the very last minute increases the chances of errors and does not give you ample of time to verify the details that you have filled in. File your return hen you have ample of time on hand and when you can do so peacefully. Do not wait until the very last minute.
- Incorrect Form Filling
There are separate forms for different types of tax payers. If you are a salaried employee you need to file Sahaj ITR Form 1, however, if you are a business owner, depending upon the nature of business, you need to file ITR form 3 or 4. Filling of the return in the wrong from will lead to rejection. Select your ITR from carefully.
- Incorrect Personal Details
All the personal details such as Date of birth, communication address, email id and phone number must be verified twice before submission. Your personal details and communication address will be used to communicate any further details pertaining to your tax filing and in case of incorrect details, it might lead to discrepancies in tax calculation. Ensure that your personal details are absolutely correct.
- Sources of Income
When mentioning your income, segregate the sources of income carefully. Income from bank interest is not the same as rent income. Furthermore, it is important to know which income is exempt and which is not. For example, interest from bank FDs is not exempt and hence all such income needs to be declared.
- Incorrect Bank Accounts and/or Bank Details
Bank accounts are KYC compliant. Hence, your PNA details are attached to all your bank accounts. Also, any bank that pays you interest over INR 10,000, will have to deduct TDS. All the TDS details will be submitted by the bank to the IT department, It is mandatory that you declare all your bank accounts and do mention the income as well as TDS details that you receive from your bank.
- Deductions and Exemptions
Deductions and exemptions must be carefully reviewed and filled under proper heads. Exempt income is not the same as a claimable deduction.
- TDS Details
Right from your employer to your bank, whosoever has deducted your tax at source, will issue you a TDS certificate. When you file your ITR, carefully incorporate the TDS details so that your tax return shows the amount of tax you have already paid.
- Mention all properties
Under Income tax rules, one is entitled to own only one property which is considered as exempt. If you club multiple rent incomes and show as one, the failure to mention of more than one property can be considered as violation of Income tax rules. It is a punishable offence.
- Verification of ITR-V
The verification of ITR filled online must be done within 120 days of filling the ITR online. Failure to do so will null the return filled and will be treated as the ITR was not filled at all.
- Not paying advance tax/self-assessment tax
Not paying advance tax and waiting to pay all tax until the ITR is filled, is not the correct procedure. As per your income, payment of advance tax before 31st March of the financial year is the law.
- challan Form
If you have computed all your income and deductions and if you have some other income, you might notice that there is some additional tax to be paid, Fill correct appropriate challan form to do so and fill in all the tax paid details with care so that it is processed without any glitches.
Tax filling is complicated process, if you collect all information before hand and do so when you have time on hand with absolute peace of mind.Take the help of Income tax experts if you are not able to do so.