While filling up the ITR forms certain mistakes are committed by by us due to oversight. Let us discuss 5 such mistakes which relates to Email ID and mobile Number, Details for refund bank account, Details of TDS as well as advance tax and self assessment tax, Schedule CG of capital gains and Foreign bank accounts in case you are a resident.
As the income tax department communicates with you through email and/or mobile so it is important that these details being keyed in in the ITR upto date. So you should ensure that the email ID and mobile one are the which are currently used in case these have been changed are only furnished. Preferably provide your personal email id and mobile number to ensure that there is no break in case you change your job or mobile number.
As the income tax department remits the income tax refund in the bank account directly for refund upto Rs. 50,000/-, it is important to ensure that the bank details are correct. In the eventuality of you having furnished wrong information about your refund bank, the refund will not get credited to your account. In order to receive the fund you will have to go through the process of making request for reissue of refund. So ensure that the details like account no, IFSC code are correctly mentioned. Do not give details of the bank account for refund purpose which you are planning to close in near future
Since you are not allowed to attach any document as proof of payment of taxes, with your ITR the credit for TDS is given on the basis of information available with tax department. So while filling details of TDS, please ensure that the TAN number of the deductor is as per form no. 26AS. Likewise for taxes paid by you be particular while filling in the details of challan number and BSR code. In case of any error, you may not get the refund or may even get a demand notice and will have to go through the hassle of filing the rectification request under section 154 to get the error corrected.
The schedule of capital gains CG is relatively complex and you need to be very careful while filling it. Be careful in bifurcating in your taxable capital gains earned for the purpose of advance tax as the law requires you to pay the capital gains instalments for capital gains on the next due for advance tax date falling due after the capital gain transaction, Any error may cost you in terms of higher interest. Likewise you are also required to furnish the details of capital gains taxable at the different rates. Any incorrect information furnished may result in incorrect payment of taxes.
Those of you who had stayed abroad and had opened any bank account have to submit the details such bank account/s in case the same was not closed before you came back to India even if you had withdrawn the entire amount lying the account. In case any bank account still remains in your name which is not yet closed, you can not use the simplest ITR i.e. file ITR 1 but will have to use ITR 2 and furnish details of such bank accounts.
So those of you are abroad please ensure to close your bank account before you come back to India to avoid the need to file more elaborate ITR form.
Balwant Jain is a tax and investment expert and can be reached at [email protected] and @jainbalwant on twitter.