Mistakes to avoid while filing your tax returns
Follow the points listed here and avoid errors while filing your tax returns
Filing for incorrect Assessment Year/ITR Form
If you don’t know yet, it’s mandatory to E-file your taxes with the Income Tax Department from FY 2016–17 onwards. You could E-file your taxes on the Income Tax website, where you’re supposed to start with choosing the Assessment year and ITR Form, something we see a lot of people getting wrong. Assessment Year starts the current year in April and ends in March next year- which occurs after the Financial Year. The Current Assessment Year is 2018–19, on the Income tax website, you can file taxes for previous and next AY as well, so they provide those years in the options which confuse a lot of people.
Similarly, you need to select an ITR form depending on your income sources. If Salary is your only income source and you own only one house, you need to file ITR-1. There are more of these forms for different combinations of income sources.
You can entirely skip figuring your ITR and Assessment Year if you E-file using services like Quicko, where the current Assessment Year is selected by default and based on the income details provided, ITR Form type is automatically selected and e-filed. You can also use Know Your ITR Tool to find which ITR you should file.
Mismatched/Incorrect Personal Information
Please make sure your Name, Address, Phone, PAN number etc. are filled in correctly to match your Aadhar/PAN. Mismatch in names will throw an error while filing itself as it gets checked with your name according to your PAN. Also, if you’re eligible for a refund, double check your Bank details so that the refund gets issued correctly.
Not disclosing all income sources
Taxpayers tend to miss income sources on purpose(to evade taxes) or due to carelessness. Income Tax Department keeps a track of your Bank transactions via PAN linked to the Bank account and irregular patterns in transactions could trigger questioning from the Tax authorities. Undisclosed income sources might be treated as tax evasion and heavily penalized.
Mismatch in TDS declared vs. Form 26AS
It’s highly recommended that taxpayers check Form 26AS for records of TDS paid on their behalf to the Department before filing a return and include those while filing tax return. A mismatch between the TDS filed in the tax return and Form 26AS will result in an intimation u/s 143(1)(a) from the Income Tax Department. If you end up getting one, here’s how to respond to it.
Failure to verify ITR- V on time
ITR- V is the verification document sent to you by the Income Tax Department once you’ve e-filed you taxes. You can verify it via Net Banking, Aadhar or EVC(Using SMS/Email). This needs to be done within 120 days of filing the return.
Failure to pay Advance/Self Assesment Tax on time
31st March being the last date of Financial Year is the last date to clear your tax dues. It’s advisable for taxpayers to clear their dues on time, failure to do so attracts an interest penalty of 1% per month.
Ready to file your tax return? Visit Quicko for a hassle free tax filing experience.
