“Avoid common mistakes while filing your ITR. Select the correct form, match income with Form 16 and Form 26AS, disclose necessary details, claim proper deductions, and verify your return promptly. Seek expert advice for accurate tax planning.”
Human errors happen, due to some situations, but an error while filing your ITR can lead you into unwanted complications. It is to be understood that filing an ITR is not just filing of some return or a form, but it is a declaration of your own hard-earned money.
Here are some of the common mistakes committed by a tax payer that you should be aware of and try to avoid.
- Selection of incorrect ITR Form
You should be aware of which form you have to file. Selecting the incorrect form can lead to defective filing and rejection of the ITR by the department. Be aware of what form you have to choose based on your sources of income.
- Disclosure of only one salary while you have salary from more than one employer
It might so happen that during a financial year, you would have changed your job. In such cases you would be having salary from more than one employer. You need to disclose both of your salaries. While reporting your income to the second employer, you should disclose to him about the earlier salary that you were receiving along with the appropriate deductions that you would have claimed.
Ultimately, your salary income should match with the Form 16’s.
- Matching with Form 16 and Form 26AS/AIS
In case of income from salary, you have to match the income with your Form 16. In case you are deviating from any information disclosed in Form 16, you must be having the adequate proofs about the source of income or the source of deduction.
Deductions not claimed in Form 16 can be claimed here. Section 80C, 80D and 80U can be claimed, however LTA cannot be claimed. You have to be sure of what you can claim and what you cannot.
Similarly, in case of other incomes, it should be matched with the Form 26AS/AIS/TIS. Any income that is appearing in your Form 26AS/AIS/TIS and not reported to you can lead to department sending a notice to you. A reconciliation with these forms is a must.
- Missing out on disclosing necessary details
Certain details such as your bank accounts, shareholding details, directorship holding, partnership, foreign assets, foreign bank accounts have to be disclosed in the ITR. Missing out on these can lead to repurcussions.
- Claim proper deductions
Be sure of what you are claiming as a deductions. Over the years, department has been selecting some returns for a scrutiny and asking for documentary evidences for the deductions claimed. Maintain adequate proofs for atleast 10 years as a practice.
In some cases section 80TTA and 80TTB deductions are missed out by the taxpayer. If you are eligible for the deduction, do not miss to claim it.
- Verify your return
The job is not over just by filing your return. You have to verify your ITR within 30 days of filing it, otherwise the return would be treated as invalid.
It is a good practice to verify your return immediately after you file it.
- Get an expert opinion
Wherever you feel necessary, always get an expert opinion. Do not fall trap for professionals who take lesser money. Always choose an expert who can guide you adequately, so that you can have a proper tax planning, which is legal and your right.
As mentioned earlier, filing ITR is not just submitting of a paper. It is a declaration from your end and you need to be aware of what you are filing. File your returns on time and be a good tax payer .
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