Mistakes to Avoid while Filling Income Tax Return

It has been observed that many times while filling Income tax returns assess makes some common error or mistake. Let’s look and understand such issues and make sure that such errors or mistakes are avoided while filling income tax return.

1. Financial Year (FY) and Assessment Year (AY) are different. Make sure you enter correct AY while filling details in your ITR. So for e.g., financial year 2017-18, the Assessment year is 2018-19.

2. As discussed earlier, make sure you use the correct ITR form 1 or 2 as applicable in your case. It is very important to file the correct for otherwise, even if you file your income tax return in time, the tax authority will not process the same due to incorrect form selection.

3. Make sure all your personal information is provided accurately. Once your ITR is ready check that the PAN card number, Adhaar card details, email id and mobile numbers etc. are correctly entered. Since email communications are now used commonly by IT authority, make sure it is entered correctly otherwise any future communication from IT department will be lost.

4. Enter all your source of income under correct head, be it Salary income, Income from house property, Capital gain etc. Many times individual misses out to disclose certain income like bank interest, short term long term gain from shares and mutual funds etc. So make sure all sources of income are covered while adding gross total income. Any failure to disclose correct gross income may lead to penalty and other prosecution as per Income Tax Act.

5. Most importantly cross check TDS details with Form 26AS. Any mis-match in your ITR and Form 26AS may result in denying tax refund.

6. Once ITR is filed and ITR V is received from IT department, send your signed acknowledgement copy to IT department within the stipulated time period of 120 days through ordinary post and not through courier for verification if e-verification is not done.

7. Verify and check the legitimate deductions and rebates under Sec. 80C etc. before filling return. Keep acknowledgment and copies of all the rebates and deduction that you are seeking in your Income tax return.

8. If the tax payer is required to pay Advance Tax or Self Assessment Tax, than the same should be paid on time and need to be disclosed in the Income tax return clearly.

9. Meet the deadline for filling income tax return in any case. If you fail to file your tax return in time and file the same late than you can not file revised return.

10. If you have filed your Income tax return online without your digital signature, make sure you send across the acknowledgment, ITR V within 120 days of filling your ITR to IT department.

In any case if an individual finds it difficult to file his or her income tax returns are there are certain logistical or infrastructure issues while filling income tax return online than he or she can take advise and help of their income tax consultant or chartered accountant. That will not only help to smoothly file the tax return but also avoid the above mentioned mistakes or errors.

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