Income Tax Filing Errors which can Increases burden on Your Pocket
Many taxpayers assume that if taxes have been deducted in the form of TDS, then they are not supposed to file an income tax return because they have paid the full amount of tax in the form of TDS. Even if taxes are paid, non-filing of income tax returns will result in a penalty.
2. Last minute rush to file Income Tax Return
Many taxpayers start preparation of income tax filings near the due date of filing. Due to last minute filing, a person can be exposed to the following errors:
• Clerical error
• Missing some eligible deductions
• Missing reporting of income
• Due to loading on the server, the income tax server may not be working properly in recent days.
3. Use of wrong Income Tax Return (ITR) form
For instance, a person with salary, other resources and ONE household property income/loss up to Rs. 50 lakh is supposed to file his income tax return in ITR form-1. But if he files his income tax return using some other form, then he may face litigation from the income tax department.
4. Negligence to look over form 26AS
Before filing an income tax return, a person must go through his form 26AS very carefully.
5. Payment of income tax in another assessment year
This is the most common error which a taxpayer commits.
6. Failure to report small incomes
Many people assume that reporting of small income like savings bank interest, interest on bank FD is not necessary.
7. Missing to report the incomes which are exempted
Missing to report exempt income is one of the major mistakes a taxpayer commits. However, it is also mandatory to report the exempt incomes.
8. Not e-verifying the income tax return
Even filing an income tax return is not sufficient. Even if a return is e-filed, in that case it is mandatory to e-verify the same within 120 days from the date of filing, otherwise your income tax return will be treated as invalid. more