istakes you commit while filing your income tax returns (ITR) could
cost you dear. Especially, in these days of advanced technologies which
the IT department utilise to find out about about your finances.
The truth is if we start counting all the possible mistakes which can happen, the list would run into pages. So here’s a quick list of some of the common mistakes that people make.
We suggest you take a printout and keep it handy while filing your returns online.
* Compulsory E-filing: If you have taxable income
above Rs 5 lakh, you will need to e-file your ITR online from this year.
Last year, the limit was Rs 10 lakh. So, ensure you abide by the new
rule.
* Ensure that you don’t make a mistake by choosing the incorrect form, for instance:
ITR1 (Sahaj) is for tax payers with income from salary, renting of one house and interest from other sources. From this year onward, income from winnings (lotteries and like) does not come under this category. More importantly, if you have any assets abroad or if you have incurred any kind of losses under the head income from other sources, you should not choose this form.
ITR2 (Sahaj) is for individuals and HUF with income from salary, renting of more than one properties, capital gains, and interest income which includes winnings. This form is not for those who have income from business or professions.
ITR4 (Sahaj) is for taxpayers with income from business and profession, and those who have income from any other head, including income from foreign assets.
These are just example of three types of Sahaj forms, for more information on forms, click here.
* Submit all Form 16: If you have changed jobs, ensure that you collect the Form 16 from the past employer as well. There is a good possibility that your past employer too has deducted tax, which means you could have paid extra tax. Hence you might just be eligible for a refund if you submit all the relevant Form 16 documents.
* Be careful with email address: Never use your office email address on the ITR form. If you change jobs in the future, you won’t have access to that email address. Giving your office email ID on ITR form is one of the dumbest mistakes you could ever make.
* Submit all information regarding income from other sources information: It becomes imperative that you declare all the income you earn even from other sources like capital gains even if such income is not taxable. Also mention income from other sources, right from sale of house property as well as rental income. Ensure, you collect all the relevant documents for financial institution well in advance, to avoid last minute hassle.
* Sending e-filing acknowledgement on time: Once you file the returns, you get an ITR -V acknowledge, which you need to submit to the IT department’s Bangalore office within 120 days. First mistake many make is that they forget to send the ITR V acknowledgement within the deadline. Another thing you need to keep in mind that you need to send it via post or speed post and not courier. And thirdly, you need to sign the acknowledge in blue ink and not black.
* Double check numbers: If your agent is filing the form for you, ensure you check it before submitting. Even spelling mistake could cost you later. Next is to ensure there are no typos, especially in the PAN, TAN number. There is a good possibility you could be fined for a wrong entry. So double check all numbers once before submitting the form online. Even the IFSC number of your bank, if you are expecting a refund.
These are just a few things you need to keep in mind for error free online filing of returns. IT department is getting stricter by the day. So ensure that you do the e-filing of return carefully.
Read more at:
The truth is if we start counting all the possible mistakes which can happen, the list would run into pages. So here’s a quick list of some of the common mistakes that people make.
We suggest you take a printout and keep it handy while filing your returns online.
If you have changed jobs, ensure that you collect the Form 16 from the past employer as well. Reuters
* Ensure that you don’t make a mistake by choosing the incorrect form, for instance:
ITR1 (Sahaj) is for tax payers with income from salary, renting of one house and interest from other sources. From this year onward, income from winnings (lotteries and like) does not come under this category. More importantly, if you have any assets abroad or if you have incurred any kind of losses under the head income from other sources, you should not choose this form.
ITR2 (Sahaj) is for individuals and HUF with income from salary, renting of more than one properties, capital gains, and interest income which includes winnings. This form is not for those who have income from business or professions.
ITR4 (Sahaj) is for taxpayers with income from business and profession, and those who have income from any other head, including income from foreign assets.
These are just example of three types of Sahaj forms, for more information on forms, click here.
* Submit all Form 16: If you have changed jobs, ensure that you collect the Form 16 from the past employer as well. There is a good possibility that your past employer too has deducted tax, which means you could have paid extra tax. Hence you might just be eligible for a refund if you submit all the relevant Form 16 documents.
* Be careful with email address: Never use your office email address on the ITR form. If you change jobs in the future, you won’t have access to that email address. Giving your office email ID on ITR form is one of the dumbest mistakes you could ever make.
* Submit all information regarding income from other sources information: It becomes imperative that you declare all the income you earn even from other sources like capital gains even if such income is not taxable. Also mention income from other sources, right from sale of house property as well as rental income. Ensure, you collect all the relevant documents for financial institution well in advance, to avoid last minute hassle.
* Sending e-filing acknowledgement on time: Once you file the returns, you get an ITR -V acknowledge, which you need to submit to the IT department’s Bangalore office within 120 days. First mistake many make is that they forget to send the ITR V acknowledgement within the deadline. Another thing you need to keep in mind that you need to send it via post or speed post and not courier. And thirdly, you need to sign the acknowledge in blue ink and not black.
* Double check numbers: If your agent is filing the form for you, ensure you check it before submitting. Even spelling mistake could cost you later. Next is to ensure there are no typos, especially in the PAN, TAN number. There is a good possibility you could be fined for a wrong entry. So double check all numbers once before submitting the form online. Even the IFSC number of your bank, if you are expecting a refund.
These are just a few things you need to keep in mind for error free online filing of returns. IT department is getting stricter by the day. So ensure that you do the e-filing of return carefully.
Read more at:
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