Some Mistakes Taxpayers Usually Makes while filing their income Tax Returns (ITR)

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Mistakes tax Payers usually makes in ITR .

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𝐒𝐨𝐦𝐞 𝐌𝐢𝐬𝐭𝐚𝐤𝐞𝐬 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬 𝐮𝐬𝐮𝐚𝐥𝐥𝐲 𝐦𝐚𝐤𝐞𝐬 𝐰𝐡𝐢𝐥𝐞 𝐟𝐢𝐥𝐢𝐧𝐠 𝐭𝐡𝐞𝐢𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐭𝐚𝐱 𝐫𝐞𝐭𝐮𝐫𝐧𝐬 :-

1) 𝐍𝐨𝐭 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐢𝐧𝐠 𝐚𝐥𝐥 𝐛𝐚𝐧𝐤 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 – in future if income tax identifies non-disclosure may send notice. Current tax laws also require you to provide details of all bank accounts that were closed during the financial year.

2) 𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐞𝐱𝐞𝐦𝐩𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐥𝐢𝐤𝐞 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭, 𝐠𝐢𝐟𝐭 𝐫𝐞𝐜𝐞𝐢𝐯𝐞𝐝 – Mentioning all of these different incomes along with their sources is mandatory at the time of filing ITR even if such income is exempt from tax.

3) 𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐥𝐨𝐬𝐬 – Many tax filers especially omit details of Capital Gains and losses when submitting their ITR, may have serious consequences, such as an Income Tax Audit.

4) 𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞 𝐢𝐧 𝐬𝐡𝐚𝐫𝐞𝐬 – With AIS and TIS showing your share trading transaction, it is impossible now to skip.

5) 𝐔𝐬𝐢𝐧𝐠 𝐓𝐡𝐞 𝐖𝐫𝐨𝐧𝐠 𝐈𝐓𝐑 𝐅𝐨𝐫𝐦 – Using the incorrect form results in a defective filing which will get rejected by the Income Tax Department.

6) 𝐍𝐨𝐭 𝐯𝐞𝐫𝐢𝐟𝐲𝐢𝐧𝐠 𝐈𝐓𝐑 𝐨𝐧 𝐭𝐢𝐦𝐞 – Tax filing process is incomplete until you have verified your income tax return. Currently, you have 120 days to verify your ITR after uploading form.

7) 𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐚𝐬𝐬𝐞𝐭𝐬 – Resident having foreign bank accounts or any assets like share, equity holding in foreign company etc. need to disclose in ITR.

8 ) 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞𝐬 𝐚𝐟𝐭𝐞𝐫 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐧𝐠 𝐓𝐃𝐒 – Few Taxpayers sees the bank’s statement and enters the receipt amount as income, not considering the fact that the receipts are after deduction of TDS.

9) 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐨𝐧𝐥𝐲 𝐨𝐧𝐞 𝐬𝐚𝐥𝐚𝐫𝐲 𝐢𝐧𝐜𝐨𝐦𝐞 -when you switch jobs during the financial year, you miss out on reporting the income from the previous job.

10) 𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐬𝐡𝐚𝐫𝐞𝐬 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐢𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 – If you are holding unlisted shares of any company registered under the Companies Act, 2013, then the details of these shares are to be reported in your ITR filing.

11) 𝐅𝐚𝐢𝐥𝐮𝐫𝐞 𝐭𝐨 𝐫𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐞 𝐢𝐧𝐜𝐨𝐦𝐞 𝐚𝐧𝐝 𝐫𝐞𝐜𝐞𝐢𝐩𝐭 – Taxpayers filing need to reconcile all receipts and income with Form 26AS, AIS and TIS before filing ITR.

12) 𝐍𝐨𝐭 𝐏𝐫𝐞-𝐕𝐚𝐥𝐢𝐝𝐚𝐭𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐁𝐚𝐧𝐤 𝐀𝐜𝐜𝐨𝐮𝐧𝐭- If you have not prevalidated your bank account, the IT Department will not be able to credit the income tax refund due to you.

13) 𝐍𝐨𝐭 𝐃𝐞𝐜𝐥𝐚𝐫𝐢𝐧𝐠 𝐈𝐧𝐜𝐨𝐦𝐞 𝐄𝐚𝐫𝐧𝐞𝐝 𝐁𝐲 𝐌𝐢𝐧𝐨𝐫 𝐂𝐡𝐢𝐥𝐝𝐫𝐞𝐧 – The income of a minor child is treated the same as income earned by the parent, so requires clubbing of income with parents.

14) 𝐌𝐢𝐬𝐬𝐢𝐧𝐠 𝐓𝐡𝐞 𝐃𝐮𝐞 𝐃𝐚𝐭𝐞 𝐅𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 𝐨𝐫 𝐍𝐨𝐭 𝐅𝐢𝐥𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 – While missing the deadline for filing returns can be taken care by paying penalty, non filing can invite the Income Tax Department to launch legal proceedings against you.

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