What are the common mistakes one should avoid while e-filing ITR? Here is your guide!
The deadline for filing the Income Tax Return is approaching fast with only 10 days left for you to file your ITR. With weekdays spent in office, many of the taxpayers sit on weekends to file ITR online.
With the last date being July 31, a lot of taxpayers would be filing their ITRs on Saturday and Sunday.
The process of filing income tax returns has been made extremely easy with taxpayers only required to fill the details of the income and the rest is taken care of by the software. However, there are still some mistakes while e-filing ITR which can cost you dearly.
What are the common mistakes one should avoid while e-filing ITR? Vishvajit Sonagara, Founder & CEO, Quicko.com shares his inputs with Zee Business.
1. Get basic details right
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It is important that you mention basic details such as PAN, Personal Information, e-mail ID, bank account number and IFSC code correctly. People often make inadvertent mistakes while entering the most basic details. Carefully enter the name, date of birth, address, email address and contact number and make these are same as in your Aadhaar and PAN records.
2. Choose right ITR Form
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ITR forms are based on different sources or combination of incomes. It is critical that you select and file the ITR Form applicable to you. Filing returns with incorrect ITR form may lead to rejection of ITR. You are e-filing your return with Quicko.com, you don't have to worry as the software determines the correct ITR for you based on the incomes and deductions that you have provided.
3. List all sources of Income
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One of the most common mistakes taxpayers make is leaving out the details of incomes which are exempt. But you have to report all types of incomes whether they are taxable or exempt. Some of the examples are the sale of shares or mutual fund units, interest earned on a savings account or fixed deposit, etc. Failing to mention all sources of incomes in your ITR amounts to concealment of income.
4. Claim all deductions
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Another common mistake taxpayers make is failing to claim tax deduction under section 80 of the Income Tax Act. First learn about investments and expenses which are allowed as a deduction under chapter VI A and then claim the deduction so you don't lose your hard-earned money by way of taxes.
5. Check your tax credits
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One of the most important things to do before you e-File is to ensure that you have checked your ‘Form 26AS’ for any potential tax credits. The form contains details of your incomes & taxes deducted from the same, advance tax, self-assessment tax, etc. All these tax credits will help you in getting a refund and avoid additional tax demands.
6. Verify your ITR
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Just e-Filing your ITR is not enough. After you have filled out all the details and submitted the return, verification is required. Once you submit the return, you will receive ITR-V on your registered email address. If the return is filed online, without the Aadhaar number or digital signature, you will have to verify your return post-e-Filing.
There are two ways to verify your ITR-
1- Send a physical signed copy of ITR-V to the CPC (Centralized Processing Center) at Bengaluru within 120 days from the date of filing return
2- you CAN simply e-Verify your income from the ease of your home/office. There are several ways to e-Verify your ITR.
The Income Tax Department lists all the ways to e-verify your ITR here.
7. Remember the deadline
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The most important thing, however, is to remember the deadline. This year, the last date to file the ITR is July 31. Sometimes the government extends the deadline but you should not wait for that. Also, there is heavy traffic on e-filing portal on the last 2-3 days so it is better if you file the ITR at least a week before the deadline.
