Filing income tax return may be a hard task for first-timers as there are a number of documents and forms involved. Often, first-time filers end up making mistakes that attract notices from the income tax department. Having said that, here are a few guidelines that individuals can follow to avoid getting any tax notice.

Filing Income Tax Return (ITR) is an important aspect of every individual’s life after he/she starts earning money from a job or business. It goes without saying that first-time filers find it really difficult to execute the entire process without making mistakes. There are various forms and documents one is required to fill for filing returns but several people end up getting notices from tax department over minuscule errors while filing.

However, these mistakes can be easily avoided if you have all the necessary documents required. Having said that, here are a few guidelines that individuals can follow to avoid getting any tax notice:

Never underreport income: One of the biggest mistakes first-time income tax filers should avoid is underreporting income as it will get you into serious trouble. There have been several similar cases identified by the tax department recently and each case has attracted heavy penalties. Often there are cases when individuals forget to mention interest from savings bank account or fixed deposits but make sure that you file these under ‘income from other sources’. It should be noted that there is a tax relief for interest earned from savings bank but it is capped at Rs 10,000. You have to mention any amount above the limit.

Check forms thoroughly: As mentioned earlier, first-time filers may face significant problems as there are several categories of ITR forms. Choosing the wrong form is one mistake that most first-time filers face. It is mandatory for an individual to file income tax using the form applicable to him/her. Using a wrong ITR form to file returns may garner a notice from the tax department, and the returns filing would not be considered. In a case where a wrong form has been selected, the individual will get a window to file a rectified return, which must be done within 15 days from the date of receiving IT notice.

Don’t ignore ITR filing: While this is more of negligence than a mistake, there are several individuals who skip the all-important process of filing ITR. Some people with income below the taxable level refrain from filing income tax but this essentially dampens your financial credibility, thus creating problems at the time of applying for loans or and plastic cards. While it is not necessary to file it if your income level is lower than the taxable amount, it is a good practice as it is closely monitored by the authorities. At a time when the government is trying to bring more people under the tax umbrella, the IT department is now scrutinising and sending notices to people who do not file income tax.

Always report income from last job: There are many instances when individuals have to change jobs in the middle of a financial year. When you move on to the next organisation, it does not mean that your filing patter or cycle changes. You are required to report the income from your previous company as well along with the income from the current job. In a case, where income from the previous job has not been reported, there are chances of negative outcomes on your TDS certificates, Form 16 and Form 26AS. These can snowball into serious issues in future.

Concealing income free from tax: Another major error that initial income tax filers make is not reporting income that is free from taxation. It may be noted that each and every taxpayer in the country is required to report all sources of income, even if some of them are tax-free. There are cases when individuals do not report income from PF or tax-free bonds – this can attract a penalty. However, if you report them and later claim exemption on these, then you will certainly get back a refund.