Paying the right tax in the right way at the right moment is the sign of a responsible citizen and this boosts the growth of the country too.
If one seeks to file one’s Income Tax Returns perfectly, containing no mistakes then going through this blog would be a wise decision.
Do keep in mind the following points that cause common mistakes while filing Income Tax Returns:
It is of great importance to get the appropriate ITR form for filing of returns. Failure to do so can result in your return not getting processed by the income tax department. The selection of ITR form depends on the nature of income or the category to which the taxpayer belongs.
However, below-mentioned are the different kinds of ITR Forms, to be chosen:
But don’t Choose ITR 1 Form If:-
(If only the Annual income from the above sources exceeds ₹ 50 lakhs)
Moreover, in a case where the income of another person like one’s spouse, child, etc. has to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
Return under section 139(4B) is required to be filed by- A political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
Return under section 139(4C) is required to be filed by every-
Scientific Research Association;
Association or Institution falling under section 10(23A);
Institution referred to in section 10(23B);
Fund or Institution or University or other Educational Institution or any Hospital or other Medical Institution.
Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
While filing the Income Tax Returns, one must provide the correct AY. For instance, for FY 2017-18, the correct corresponding AY should be 2018-19. Mentioning the wrong AY increases the chances of double taxation and attracts unnecessary penalties too.
It is highly advisable that personal details viz. Name, Address, E-mail id, Phone number, PAN, Date of Birth etc. are accurately mentioned in the Return Form. You need to ensure that the details must match with those given in your PAN.
Moreover, if you are thinking of claiming for a refund, make sure your bank particulars to which you intend your refund to be credited, like account number, IFSC code etc. are accurately mentioned in order to receive your refund on time and without hassles.
It is really important to check Form 26AS before filing the ITR. Form 26AS includes all the income details, Tax Deducted at Source (TDS), advance tax paid by you, self-assessment tax, etc. A salaried person must cross verify the details with Form 16 issued by the employer to avoid any discrepancy, which may lead to less refund or more payable taxes.
It is a typical mistake today that a large number of people think if TDS is deducted by their employer, they don’t need to file income tax return. While, a TDS deduction doesn’t represent one’s income tax return in any way.
Income tax department has the details of your TDS deductions which would be incorporated in your income tax return. So you will get a refund if you have paid more than your tax slab. On the contrary, if you underpay the income tax due, you may get a notice from the income tax department.
So, it is really important keep up-to-date all your tax records regardless of the tax slab as all these documents are required when applying for a loan like Home Loan, Personal Loan, Car Loan etc.
Owing to lack of knowledge, many salaried professionals make this error when they switch jobs in a financial year. They are not able to accurately incorporate proper tax deduction information for both jobs. A summarized calculation of relevant particulars (including the previous companies and the present company) should be provided in a single format
Early preparation and timely Return Filing protects you from any hassle/penalty while, waiting for the last moment leads to chaotic situations. Thus, be prepared on time and file your ITR choosing the right Form at the right hour. This is highly advisable for the peace of your mind. Moreover, Cross-Checking of all the furnished details thoroughly brings much security of its acceptance in the first attempt.
All the above mentioned points help you file your Income Tax Return in the right manner and at the right time. However, if any difficulty arises while filing an ITR Form, consulting an expert will be the most apt solution.