Income Tax NoticeImage Credit source: File Photo
If you file your Income Tax Return (ITR) yourself, you can file your income tax return for the financial year 2022-23 by July 31, 2023. Income tax is a complex law, so rushing through the process due to delays can negatively impact your ITR. Here are some of the most common mistakes made by taxpayers while filing ITR. People who do not take into account often and later have to face many difficulties.
Abhishek Soni, co-founder and CEO of fisdom company Tax2Win, says that mistakes made while filing income tax returns can fail your income tax return and expose you to penalties. These mistakes should be avoided while filing ITR.
Selecting wrong ITR form
One of the most common mistakes while filing ITR is using the wrong ITR form. Using the wrong form leads to wrong filing which will be failed by the Income Tax Department. Choosing the appropriate ITR form mainly depends on the source of your income.
For example, if you are a salaried employee, you can file the return using ITR Form 1. However, if you have both salaried income and capital gains from investments, you should use ITR Form 2. On the other hand, if you are self employed with business profits as your source of income, you should file your return using ITR Form 3
income on interest
Another important mistake to avoid interest income is failing to report income from all sources. Include income from salary, home property, capital gains and investment. Omitting any income may lead to fines and scrutiny from tax department officials. Similarly, make sure to claim eligible deductions and exemptions under various sections of the Income Tax Act, such as Section 80C and Section 80D, to reduce your taxable income.
Failure to pre-verify bank account
While filing income tax return, it is important to pre-verify the bank account, especially if taxpayers are expecting tax refund for any excess tax paid. If this is not done, the Income Tax Department will not be able to credit your outstanding income refund.
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Forgot to verify your ITR
A common tax filing mistake is forgetting to verify your income tax return. Taxpayers often realize this mistake only when they receive a notice from the Income Tax Department. Correcting this mistake can be time consuming and expensive. At present, tax payers have 30 days to verify their ITR after submitting the complete ITR form.
Explain that it is necessary to avoid common mistakes like claiming relief, deduction and exemption without filing income tax form within due date, giving incomplete or wrong bank details, failure to reconcile income and TDS as per Form 26AS, information Ignoring, Available in AIS/TIS, Not claiming tax exemption, Exemption of transaction (if applicable), Claiming wrong exemption to reduce the taxable income, Claiming all sources of income Failure to disclose should always be avoided.
Individual taxpayers should maintain proper records of documents such as Form 16, Form 16A, bank statements, investment proofs and rent receipts for at least six years. These records come in handy in your future especially during audits or inquiries from tax authorities.
Source: www.tv9hindi.com”
