Common mistakes to avoid while filing your Income Tax Returns
July, 18th 2018
Make sure that you do not commit the mistake of ignoring the rules of taxation.
As tax filing deadline inches closer, you may be rushing to collate all your documents to file your returns. But sometimes despite being very careful, we can commit mistakes that can land us in trouble with the tax department.
Amarpal Chadha, Tax Partner & India Mobility Leader, EY India said that it is essential to re-check your ITR form before submission to avoid any incorrect reporting or making your return defective. "One could do a quick check on a few points like - Have you used the right ITR form, Have you captured all sources of income, for example – did you make a profit on bitcoins, have you done a comparison with your last year return, have you looked at your Form 26AS or have you made necessary disclosure of assets, as applicable," he added further.
It is thus, important to keep in mind the points mentioned to avoid committing mistakes while filing ITR. Adhil Shetty, CEO, Bankbazaar told Moneycontrol that assesse should avoid these seven mistakes while filing their income tax returns.
=| With the CBDT notifying seven new forms for the assessment year 2018-19, it is important to identify which form is the right one for you and choose it to file your returns. In case you commit the mistake of filing the wrong form, your ITR will be considered defective.
=| Do not commit the mistake of ignoring the rules of taxation. For example, if you have multiple properties, only one will be considered self-occupied, while the rest of the properties will be considered as let out or rented and will be tax accordingly.
=| Do not commit the mistakes of missing income from any source while filing your ITR. You should include salary, interest earned from Savings Bank Account, Fixed Deposit, etc. In case you miss any detail, you may get a notice from the tax department seeking an explanation.
=| Not updating personal details is another mistake that should be avoided. A change in address and mobile number during a financial year should be mentioned while filing returns.
=| Any mismatch in details of Form 16 and Form 26AS can also land you in trouble. Do check if the tax deduction as mentioned in both the forms are same and there are no incorrect figures.
=| Not being careful about mentioning correct deductions is also a mistake that should be avoided. Do check if you have mentioned each deduction under correct heads.
=| Delaying the process of tax filing should be avoided any cost. From this assessment year, you will have to pay a penalty of Rs.5000 if you file your returns after the due date and by December 31. If you file it after December 31, a fine of Rs 10000 will be levied.
By keeping these points in mind, you can ensure a hassle-free tax filing for yourself.