Filing the Income-tax returns at the last minute can lead to some incorrect information by the taxpayer which can have a negative impact on the outcome of filing the returns. Filing for the ITR is compulsory if the total income is more than Rs. 5,00,000 in a year.
Here are some common mistakes a taxpayer can make while filing ITR:
1. Selecting the wrong form
It is important to select the right ITR form and if the wrong form is selected the return will not get processed. Selection of the form is based on the category of the taxpayer or the nature of income.
If the taxpayer has selected the wrong form, a defect notice from the department will be received which has to corrected within the specified time period.
2. Incorrect personal information
Personal details like name, address, mail id, phone number, PAN details, date of birth, etc. should be correct. And if you are claiming a refund, make sure that details like account number, IFSC code tec should also be correct so that the refund can be obtained without any trouble.
3. Quoting the wrong assessment year
The assessment year should be correct while filing the ITR. Wrong assessment year selection can increase the chance of double taxation and unnecessary penalties.
4. Failing to check the form 26AS
It is important to check the form 26AS before filing the ITR. This form includes all the income details, TDS, any advance tax paid, self-assessment tax, etc.
5. Not sharing the sources of income
If there is some income from any other source than the primary income, it should be disclosed irrespective of being taxable or exempt.
6. Not paying any Advance tax or Self-Assessment tax
It is advisable to pay your taxes within the due date to avoid any penalty. Therefore, the taxpayer has to make sure the tax dues are cleared on or before 31st March of the financial year. If it is not paid on time, an interest of 1% per month will be added until the dues are cleared.
7. Failing to dispatch the ITR-V On Time
After you have successfully filed for your income tax returns, you will have to verify your ITR-V via netbanking, Aadhaar card or through the EVC process on your mobile number and email. Verification of the return is important because the IT department will start processing the returns only after verification is received by them.
If you are not able to verify your return, you can sign and send the ITR-V through speed post only. This has to be done within 120 days from the date of filing the tax return.
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