Here are most common mistakes which should be avoided while filing your ITR:
Selecting Wrong ITR Form
Common mistake an assessee commits is choosing the wrong form for filing income tax return. Various Income Tax return forms are notified by the IT department for filing income tax return.
Selecting a correct form is very essential for proper filing of income tax return.
ITR 1 (Sahaj),ITR 2, ITR 3,ITR 4, ITR 4S (Sugam),ITR V
Not disclosing all Incomes
While most salaried taxpayers seek to disclose only their salary income, it is important to report income for other heads, such as savings bank account income,long-term capital gains,dividend from equity, Mutual Funds and listed securities.
Entering Wrong Information:
PAN Number: You miss filling in one number or character of your permanent account number (PAN) and the form cannot be processed.
TAN number: If the TAN no. of the employer is not wrongly entered then you will not get the credit of your tax deducted.
Status:Calculate taxes based on the applicable slab rates
Bank Details: the furnishing of bank account particulars is mandatory even if no refund is due.
Other details like Email Address, MICR code, address for communication,phone number etc.
Not Signing the Form:
Assessees are in a hurry to file income tax return and they forget to sign & submit the ITR in manual filing and ITR V without DSC. It may lead to rejection of the ITR filed.
Signing a blank form:
Signing a blank form and leaving it completely on the agent is not a recommended option.
Ignore Multiple Form 16:
If you’ve changed jobs in the middle of a fiscal year, ensure that you collect Form 16 from both employers.
Not Verify TDS with Form 26AS
Check the TDS and advance tax against your PAN in your 26AS on the income tax website.
Not Recheck Deductions
There are some other lesser known deductions like Section 80E, 80G, 80DD etc. which need to be mentioned in your return form.
Ignoring Reversal of Deductions:
If you sell your house within five years of getting its possession, the deductions availed on the home loan are reversed. Installment or part payment of amount due under self-financing schemes is allowed as deduction under section 80C.
Attaching supporting documents with ITR-V
The income tax department's e-filing website clearly states that no annexure,covering letter or pre-stamped envelopes to be sent along with ITR-V.
Filing Delayed ITR
Filing on time becomes extremely important for people having tax losses, otherwise the benefit to carry forward these losses to offset future income is lost.
Copy of the Return
A copy of Income tax return and Acknowledgement should be maintained by you will be helpful during audit process.
Do not forget sending e-filing acknowledgement
You should remember to take a printout of ITR V, sign it and send it to the Income Tax Department’s Bangalore office within 120 days. Unless you send the acknowledgement, your E-filing is not treated as complete.
No filing at all
Tax filing helps you in availing any kind of loan, visa and immigration processing, income proof / net worth certification or even applying for high Life Insurance Cover
The importance of filing correct and accurate returns cannot be any less emphasized. Neglecting to pay attention to details can end up making taxes even more costly or delays in refund.
We suggest you take the e-filing route through Filingmantra.com tax portal.We have software that prompts you to correct common mistakes.