Income Tax Return

Season of income tax returns has commenced. You need to show your Income to Income Tax Authorities on or before 31st July. By now, you must have received Form-16 and an instruction to file the returns as soon as possible from HR Managers. But before you start with filing process, let‟s look upon the common mistakes that people usually commit at the time of filing returns:

Non-filing of tax returns –

This is the biggest mistake committed by most salaried employees. Under the impression of myth “Since my employer has deducted TDS from my salary, hence I don‟t need to file my income tax return” they don‟t file returns. If income exceeds basic exemption limit, income tax return is required to be filed even if tax liability is zero or all taxes have already been paid. Chances of excess TDS deduction from salary are also possible, hence file the return within due date to claim refund of tax.

Not keeping evidences of deductions claimed in return –

For all expenses/ investments claimed as deduction under Chapter VIA (Children Tuition fees, LIC, PPF etc.), maintenance of records/ evidences/ proofs of expenses/ investments is required. Claiming deduction without adequate evidences in hand can lead to disallowance of such deductions and increase in tax liability at the time of scrutiny. So either have an evidence for a particular expense/ investment, or else don‟t claim deduction of it.

Mentioning incorrect personal or correspondence details –

Due care should be taken at the time of quoting PAN in income tax returns. Special attention should also be given at the time of mentioning address details, email-ID and mobile number. Email-ID and mobile number already mentioned in previous income tax returns/ registered on income tax website should be preferably mentioned. Now days, details of Aadhar Card number are also required to be submitted, so ensure accuracy in filling the correct number.

Not checking the 26-AS statement –

26-AS statement provides an insight of TDS deducted and deposited against PAN number. Since in the income tax return, details of party, amount paid, TDS deducted etc. are to be mentioned, therefore, 26-AS statement proves to be a very helpful tool. It also helps in calculation of net tax liability accurately.

Not reporting income of other job –

If you have earned salary from two or more employers in the same year. Income received from all employers should be reported in income tax return. Also some persons fill different income tax return for each Form-16 which is incorrect. Income received from all employers should be mentioned separately one by one in a single form. TDS deducted from each employer should also be mentioned in the return.

Not verifying the e-return –

Responsibility of filing the tax return doesn‟t end with online submission of income tax return. One has to verify his/ her return either by sending the signed acknowledgement. ITR V will be sent to CPC, Bengaluru by post. It can be e-verified through the options available on income tax website. Income tax website gives the option to verify the return through Aadhar card/ online banking/ bank account.

Beware of these mistakes and go ahead with return filing.

hardiklashkari

Common Mistakes that You can Make While Filing Income Tax Return