The tax filing has to be done by everyone. The ITR filing process has made easy and hassle-free by the government, thanks to the introduction of, income tax efile or e file taxes. It is time-saving and enables taxpayers to compute exemptions or/and claim refunds.
Still, people make mistakes in the process of e file taxes and it gets noticed by the income tax department eventually.
Here are 10 mistakes to avoid when tax filing your ITR.
Filling The Wrong Form
The first step is to find the appropriate form for filing your ITR. There are 7ITR forms based on the kind of income you earn. For example, ITR1 is only for salaried employees.
It’s compulsory to choose the correct form so that ITR can be filed seamlessly and it doesn’t face any rejection by the IT Department.
Filling Incorrect Personal Information
You need to accurately fill in your personal details like PAN, contact number, e-mail address, bank account number and bank IFSC code so that it doesn’t get rejected by the IT department.
If you furnish the wrong PAN, then your income tax efile will be rejected by the IT department on the basis of data mismatch.
Not Mentioning All the Income Sources
People tend to forget to mention their tax-exempted amount. Tax experts advise mentioning both taxable and non-taxable income. Tax exempted income includes interest earned on the savings accounts or/ and fixed deposits, money earned by selling shares or/and mutual funds.
Not mentioning all sources of income is considered as ‘concealment of income’.
Read About: Advance Tax
Claiming deductions under Inappropriate Sections
Claiming your deductions under inappropriate sections of the IT Act or leads added tax liabilities. For instance, it’s wrong to claim employer’s contribution to the EPF as per section 80C while the money repaid for house loan is claimed according to section 80C.
Not Checking Tax Credits
Check form 26AS prior to e-filing your ITR. Form 26AS admits your income details, TDS, advance tax, self-assessment tax and other tax details. In case you’re a salaried employee, along with Form 16 cross-check your income and tax details with Form 26AS so that any discrepancy (if any) can be avoided.
Not Mentioning Multiple Properties
In case you’ve more than 1 property, you can claim tax refund only on 1 property as per the IT Act, 1961. It’s recommended to provide all the details of your properties otherwise you will be accused of violating the IT Act for concealing your income.
Getting TDS Deductions More Than Once
These mistakes happen when people switch jobs in a single fiscal year. It’s quite obvious that your previous employer had sent the TDS on the basis of your earned income.
Although, your current employer might have deducted your TDS for that very financial year. Share your TDS details with your current employer and avoid double deductions.
We hope this article has shed some light on the common mistakes made by the taxpayers while filing their income tax return. Don’t make these mistakes and save yourself from unnecessary troubles.
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