News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
News Headlines »
 Individuals with more than one house cannot use ITR-1 form to file taxes
 Income tax department admits error in charging late ITR filing fee
 How to pre-validate your bank account to get income tax refund Income Tax Return 2019
 Notification NO. 86/2019 Income-Tax
 Didn't receive income tax refund? Here's how you can raise a re-issue request step by step
 Notification No. 80/2019- The Central Board of Indirect Taxes and Customs
 CBDT Extends Income Tax Return Filing Deadline in J&K, Ladakh Union Territories to November 30
 Check you income tax outgo for AY2019-20
 ITR forms for AY 2019-20 notified – Complete list of ITR forms and their usage
 No taxable income? You may still have to file your returns
 Not received your tax refund? Here is what you should do

Filing income-tax returns? Here are the five key mistakes to avoid
June, 21st 2019

Individuals and Hindu Undivided Families constitute almost 98 per cent of e-filers. This category tends to be most prone to making mistakes while filing returns. Begin collecting relevant documents and file returns before the July 31 due date. Here are common mistakes to watch out for:

Choosing incorrect ITR form: The ITR (income-tax return) form varies depending on source(s) of income. Use of incorrect ITR form can result in the return being treated defective. Such assessees are given intimation under Section 139(9), asking them to rectify the mistake within 15 days. “If the error is not rectified, the return is treated invalid, and the I-T department will deem it to be a case of non-filing,” says Suresh Surana, founder, RSM Astute Consulting Group.

Not disclosing several types of income: Interest income from banks — savings and fixed deposits — and post office must be reported while filing returns. “Interest income should be shown in the return even when Form 15G or 15H has been filed, provided the earning is not exempt under Section 10 and total income exceeds the maximum amount not taxed,” says Surana. By filling Form 15G/15H, one can prevent tax deducted at source (TDS) if taxable income is below the basic exemption limit, or filer is a senior citizen.

Incomes such as dividend, interest on tax-free bonds, eligible gifts, etc should also be reported even though they are tax exempt. “Filing tax return is not just about paying tax, but also about disclosing sources of income, so that if filer is questioned about his income at a later date, he can justify it using his tax return,” says Deepesh Raghaw, founder, PersonalFinancePlan, a Securities and Exchange Board of India-registered investment advisor.

Income shown in return does not reconcile with Form 26AS: A discrepancy between income reported in Form 26AS and in the return filed by the filer can lead to the I-T department making preliminary adjustments and sending a notice under Section 143(1).

The assessee gets 30 days to respond online.

Sometimes the taxpayer does not include some income or the other while preparing his return that has been captured by Form 26AS. “Before filing the return, look up Form 26AS to avoid such mistakes,” says Raghaw.

Sometimes, credit for TDS is not included in Form 26AS. In case TDS has been deducted but is not reflected in Form 26AS, follow up with the entity doing the deduction to get the records updated.

Failure to claim deductions not shown in Form 16: Sometimes, certain exemptions do not get reflected in Form 16. This can happen because proof of investment was submitted late. Taxpayers are entitled to claim those exemptions while filing their return, provided they have the supporting documents.

Taxpayers also make mistakes when they have multiple Form 16s. “They have difficulties in figuring out how much tax deduction to enter in their returns. They usually see a tax payable if they forget to disclose salary from first employer to the second employer,” says Archit Gupta, founder and chief executive officer, ClearTax.

Filing return after due date: Avoid this as late-filers are denied benefits. Loss under ‘capital gains’ and under ‘business or profession’ cannot be carried forward for set-off in subsequent years (loss on house property is the exception).


Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions