Income Tax Return: Top 5 mistakes that you must avoid while filing your ITR
Income Tax Return (ITR) filing is a responsibility that each and every earning individual must take care of. When everything is going digital, income taxpayers are advised to do their bit and e-file their ITR - all on their own. Of course, they should have some idea about the selection of ITR form, etc. Generally, while filing ITR, there are some common mistakes that everyone must avoid at all cost.
Speaking on the common mistakes that an earning individual commits while filing ITR, Harsh Jain - Co-founder & COO, Groww said, "First and foremost thing that an earning individual should keep in mind is to file ITR on time. Apart from that, selection of ITR form, not disclosing the source of income, mismatch in Form 26AS and other TDS certificates etc., are some common mistakes that people commit." He listed out the following top 5 mistakes that people commit while filing their ITR, Jain listed out the following. Photo: Pixabay
Selecting the wrong ITR Form
This is something every taxpayer needs to pay heed. Every year the income tax department releases revised ITR forms that specify eligibility criteria. Each ITR form differs based on the nature of income that needs to be disclosed by the assessee. Since the forms are revised every year, it may so happen that taxpayers no longer have to file the same ITR they filed last year based on the changes. Photo: Pixabay
Not Disclosing All Sources Of Income
This is a mistake many salaried individuals commit. They need to disclose all sources of income apart from salary while filing returns. Sources other than your salary include income from bank savings, rental income from house property if any, capital gains income, etc. Photo: Pixabay
Mismatch in Form 26AS Details and Other TDS certificates
It is advisable to keep all your TDS certificates like Form 16, Interest certificates from the bank (Form 16 A), TDS certificate on sale of property ( Form 16 B) together and check whether correct TDS has been deducted against your PAN, with the entries in your Form 26AS. Form 26AS is a consolidated tax statement that reflects TDS deducted against your PAN from all sources. Make sure there is no mismatch in the values, in case there are, you must inform the deductor immediately to correct it from his or her end. Any discrepancy in this regard will prevent taxpayers from claiming a tax credit against TDS later on. Photo: Reuters
Not Claiming deductions correctly
It is possible that you may have not been able to submit tax saving investment proofs to the employer and hence the details were not recorded in your Form 16. However, even if investments were not declared to the employer, tax relief can still be claimed while filing income tax returns. Keep the details of investments as supporting documents so that these deductions can be claimed. Photo: PTI
Not filing ITR on Time
Income Tax filing should not be a last-minute assignment and the necessary documents and TDS forms should be collected well in advance. Not only does late filing attract a penalty, but also robs you off certain benefits. Photo: PTI