Top 5 mistakes you can make while filing IT return
Summary: - As the July 31 deadline approaches to file your returns, here's how to ensure you don't commit errors and receive a tax notice. With advent of technology and eagerness to get more taxes the IT department is keener to take on you.These are the top frequently mistakes done while filing return, Its worth taking some experts helpwho can guide you to file it properly.
1. Waiting for Last Moment
As the well-established habit, Most of the taxpayers rush to file their return at last moment, which results in an improper filing with left out incomes or incomplete details. Returns filing at such time are more prone to commit mistakes. IT Return filing is an important tax compliance, So take it seriously and do it on a priority basis.
2. Job Changes & Double Deduction
This is a common error that many salaried taxpayers commit. If you had switched jobs during the previous financial year, you might have got the Form 16 from both employers. While the first company may have deducted the tax correctly, the second might have deducted very little. It would have considered only the income for the rest of the year and given you the basic exemption of 2 lakh, as also the deduction under Section 80C. However, these must have already been factored in by the previous company. "You might have to pay additional tax in such a situation. Get help of a consultant to do proper calculation and filing of return after payment of additional tax. Don’t think Taxman will never know if you don’t declare one company’s income details. In fact they already have the details with them.
3. Not mentioning exempt income & Interest Income
Dividends are tax-free. So are long-term capital gains from stocks and equity funds, as well as the interest on your PPF investments and tax-free bonds. There is also no tax to be paid on agricultural income and gifts from specified relatives. Even though these are tax-free, all exempt incomes must be mentioned in the tax return. Many taxpayers think this deduction also includes the interest earned on bank deposits. Last year's budget had introduced a new Section 80 TTA, which gives a deduction of up to 10,000 on interest earned on your balance in the savings bank account . However the interest earned on fixed deposits and recurring deposits is fully taxable at the normal rate.. Ignore these at your peril.
4. Not checking & matching TDS details with 26AS
Before you file your returns, check whether the tax you had paid for last year has been correctly credited to your name. For This you can match your Form 26AS
5. Not mailing/verifying ITR V in time
The ITR V is the acknowledgment of your tax return. It is to be submitted along with your return if you file offline. If you have e-filed your return without a digital signature, you need to take a print of the ITR V, sign it and send it to the CPC in Bangalore by ordinary mail. This should be done within 120 days of uploading your return.
Take Expert advice to file the proper return and get complete peace of mind. You can trust AKT Associates‘sExpertise to file error free return.
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to firstname.lastname@example.org