As per the Income Tax law, Income Tax Return must be filed by every tax payer whose income exceeds the basic exemption limit. With the Government rapidly shifting all the perspectives to the “Digital India Initiative”, so is the Income Tax Department increasing its reliance on the electronic communication. Since most of the individuals file their return themselves, they are more likely to commit certain mistakes which could be troublesome as it can lead to severe complications as Income tax is a complex law. Hence, it is very crucial that the Income Tax Return filed is error free in order to avoid any mess.
So, In this blog we are to discuss the common mistakes that are required to be circumvented for hassle free filing of the Income Tax Return.
The Due date for filing your ITR
It is very important that the Income tax return is filed on time and meets the deadlines provided, failing which can lead to heavy fines and penalties that may extend up to Rs. 10,000/-
Filing your Return of Income in an Incorrect ITR Form
Choosing a wrong ITR form happens due to lack of knowledge. Selecting the correct ITR form depending on the sources of your Income and many other aspects can help you save from the notices by the income tax department and saving your hard-earned money by paying higher taxes on higher income which do not take into account your deductions mentioned in the Return.
Correct Personal Details
One of the most basic factors due to which large number of Income tax Returns get rejected also leading to delays in the refund process. The taxpayers shall provide correct Personal details such as Name, Bank account number, IFSC code of the bank account, address so that the return as well as the refund if any gets processed appropriately and, in a hassle, free manner.
Claiming Genuine Deductions
In order to avoid and Income Tax liability, many of the tax payers tend to claim the deductions which are fake. In addition to this, the taxpayers also claim deduction over and above their existing genuine deduction. If any deduction is claimed by the taxpayer, it is very important that the taxpayer possesses all the records and required documents for the same as a proof of claiming deduction. Reporting fake deductions can lead to penalties.
Take into account all heads of Income
Disclosure of all the Income earned by you be it Rental Income, Interest Income, Exempt Income, Tax free Income etc. has a significant role to play as it shall also decide the ITR form for you and also save you from under reporting of your Income, which if comes to the notice of the department can lead to notices and fines for non-disclosure, that could be cumbersome later on.
Attention to the particulars of Taxes paid or deducted
Checking your PAN Number, TAN Number, Challan details, BSR Code, Challan Serial Number is another important aspect in order to get the correct credit of the taxes paid. Paying appropriate attention to the details of TDS and any other taxes paid could save you from getting any demand notice, filing of rectifications and getting the correct credit.
Disclosure of the Foreign Bank Account
For all the taxpayers who have stayed abroad even for a shorter span of time and have opened a Bank account in foreign country, need to make sure that the same is disclosed in the Return of your Income even if you have withdrawn the entire balance from your account. So, remember to close your bank account held in a foreign country before returning to India to avoid filing more complicated forms.
Therefore, avoid the errors mentioned above, in order to file your Income Tax Return to free yourself from the complications and severities that may arise if you do not file it in the intended and correct manner. Also, if you are unsure about how to submit your return yourself, you may always seek help of the Professionals in doing so, as it is important to submit the return correctly and on time to ensure a hassle-free mind. Have Fun submitting the Return.