5 common mistakes you should avoid while filing your income tax return ITR
July, 13th 2022
The government of India has fixed the last date of filing the income tax return (ITR) for FY22 as July 31, 2022. The date is fast approaching. The taxpayers are required to fill out several forms, Form 26AS, Form 16, capital gains statement, and interest certificates, among others. In all the paperwork, some mistakes are bound to happen. However, errors can be avoided if taxpayers have prior knowledge about them.
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Here are some mistakes you should avoid while filing the income tax return (ITR 2021-22):
Missing the deadline
The last date for filing the ITR 2021-22 has been fixed as July 31, 2022. The taxpayer may be subjected to several punitive measures if the return is not filed before the deadline. This includes a penalty of up to Rs 10,000, an additional 1 per cent tax on the unpaid taxes and a delay in receiving the excess tax.
Not filing the return
Failing to file the ITR altogether may land taxpayers in several legal troubles. The Income Tax Department (I-T Dept) may impose a penalty on the tax due from the due date to the filing date. A jail term of 3-7 years could also be awarded to the taxpayer.
Providing incorrect information
While filing the ITR is necessary, providing correct personal information in the forms is even more critical. The details that need special attention are PAN details, e-mail ID, date of birth and IFSC code.
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Tax authorities may reject the forms if the PAN details are filed incorrectly. If the IFSC code is incorrect, the taxpayer may face a delay in receiving the returns.
Omitting the details of capital gains
It is mandatory to mention capital gains or losses in the Income Tax Return. The income from shares, property sales, etc., comes under capital gains. If the taxpayer fails to mention any such profit or loss, it may lead to a tax audit. For the ease of taxpayers, the I-T Department allows them to check their Capital Gains Statement.
Not verifying the ITR
Filing the ITR is a complex process, and errors are bound to happen. The I-T department notifies the taxpayer's mistakes if it finds any. So, it is important to verify the ITR to reduce the chances of any errors. A period of 120 days after the ITR deadline is provided to verify the ITR. ITR verification can be done through Aadhaar OTP or the bank's online banking service. It can also be done by sending the signed physical copy of the return to the Central Processing Centre (CPC).