Top 10 Common ITR Mistakes
Posted: Mar 11, 2019
You should file your income tax return carefully because improper income tax return filing can cause you in trouble in the form of penalty & notices from the income tax department. You can also take help of top tax consultant in India and top Chartered accountants in India by using online CA services to avoid any penalty & notices from the income tax department.
1. Selecting the incorrect form:
A taxpayer must file ITR using the correct form as if he file ITR using the incorrect form, the return will be considered as defective and he has to file a revised ITR using the correct form. If the defect is not rectified within the time limit, then it is considered the same as not filing a return at all.
2. Furnishing incorrect personal details:
A taxpayer must furnish correct personal details and also make sure that in case of any refund bank particulars like account number, IFSC code etc. are accurately mentioned in order to receive the refund on time and without hassles.
3. Not reporting all bank accounts:
A taxpayer is required to report all the bank accounts held by him in the income tax return. However, dormant accounts are excluded from the requirement of reporting in the income tax return.
4. Not reporting interest incomes:
A taxpayer must report all the interest incomes received or accrued due to him in the previous financial year while filing his income tax return as they generally forget to report interest earned from the savings bank account, fixed deposits (FDs), recurring deposits (RDs), etc.
5. Not reporting income from the last job:
If a salaried taxpayer switched his job in a financial year, then income from his previous job must be reported while filing an income tax return with income from the current job.
6. Not reporting tax free incomes or exempt income:
A taxpayer must report all his incomes even if some is tax-free. These exempt incomes are to be reported in the 'Exempt Income' schedule of the income tax return.
7. Not clubbing incomes:
A taxpayer must club income of specified persons to his own income and the tax payable by him is calculated on the total of these two incomes. The income of the minor child is added to the income of his/her parent and parent can claim exemption of Rs.1500 or income of minor so clubbed, whichever is less.
8. Not Reconciling TDS With Form 26AS:
A taxpayer must check the details of all the income details, TDS deducted, advance tax paid, self-assessment tax paid, etc. in Form 26AS and also verify it with Form 16 and Form 16A to avoid any discrepancy.
9. Not Paying Advance Tax/ Self-Assessment Tax:
A taxpayer must ensure that the tax dues are cleared on or before 31st March of the financial year because failure to do so within due dates will attract interest and penalty.
10. Not Verifying ITR V on time:
After e-filing your income tax return, a taxpayer must e-verify his return via Net banking, Aadhaar Card or through the EVC process. If due to any reason he is unable to e-verify your return, then he can sign and send the ITR-V to the CPC via ordinary or speed post only within 120 days from e-filing of return.
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