Most of these errors tend to be simple mistakes that could be addressed with awareness.
It is the season for Income Tax returns. With an increasing number of people filing their own returns online, there is also a rising number of cases where taxpayers end up making mistakes in their returns forms. Most of these errors tend to be simple mistakes that could be addressed with awareness.
Here are four common mistakes and how to avoid them while filing your Income Tax returns:
Choosing the correct ITR form:
The different ITR forms for different sources of Income. Normally, an individual files ITR 1 or Saral to file a return. Using incorrect ITR forms can result in the returns being treated as invalid. Such assessees are given intimation under Section 139 (9), asking them to rectify the mistake within 15 days. If the error is not rectified, the return would be treated as invalid.
Disclose types of income earned:
An individual should report interest income earned above Rs 10,000 from saving deposits and fixed deposits and post office deposits before filing the return. To prevent tax deduction at source, an individual or senior citizen can fill Form 15G/15H. Incomes such as dividend, interest on tax-free bonds, eligible gifts, etc should also be mentioned in your ITR even though they are exempt.
Income shown in the return should reconcile with Form 26AS:
At times, a discrepancy cropps up between income reported in Form 26AS and in the return the ITR filed by the taxpayer. In this situation, the tax department sends a notice to the assessee and he has to respond within 30 days online. Form 26AS should be checked before filing the return.
Do not fail to claim deductions not shown in Form 16:
Form 16 is provided by the employer and you have to submit investment proof along with it. Sometimes, certain exemptions do not get reflected in Form 16. This may be because proof of investment was submitted late. File your return before the due date because loss under 'capital gains' and 'business and profession' cannot be carried forward for set-off in following years.
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