Planning to file your own ITR this year? There are great chances that you will make mistakes while filing the returns which may cost you dearly afterwards.
Most of these mistakes are caused due to sheer ignorance or lack of knowledge. While it is often said that Ignorance is Bliss, it might not apply in this case. So, it is very important to file the ITR in an errorless manner to avoid any kinds of future tolls.
Listing some of the most common mistakes by individuals while filing an ITR and how these can be avoided.
1. Not Filing the ITR (Yes, that is the biggest Mistake)
2. Filling Incorrect Personal & basic details
3. Double Declaration of Common Taxes like HRA, Medical Claims etc
4. Missing certain Valid Income Sources (Fixed deposits, Income on Saving Account, Deposits made on the name of spouse and Kids)
5. Keep track of Tax rule Changes
6. Not Sending ITR-V form
While these are the certain mistakes that are made unintentionally or intentionally which may be of big concerns if caught later.
Not Filing the ITR: The most common and innocent mistake people make is to not file the Income Tax Return. No matter how much saving or loans you have, if one’s annual income is above 2.5 lakhs than one must file the ITR.
Filling Incorrect Details: Make it a habit to double check all the details; it is possible that you add wrong basic details such as PAN number.
Double Declaration of Common Taxes: It is the era of working individuals & couples when both the spouses work, there are huge chances that both of them end up declaring tax on the same commodities/properties. For eg: In some cases both the spouses declare tax on the house rent while it should have been filled by just one of them. In cases, when the tax is shared than the amount should also be shared in the declaration form.
Missing Valid Income Sources: At times, we forget about the other sources of income which needs to be declared in ITR. Sourced like fixed deposits, gifts, saving accounts etc. For an instance, a friend asked me that a fixed deposit will still be considered as an Income source if the yearly interest calculated is only upto Rs 2000. Unfortunately, the answer here is yes… even if a fixed deposit gives you only 100 bucks as interest than also it is counted as taxable.
Keep Track of Tax rule changes: It is important to stay up to date in the current world scenario. Before filing the ITR, one must keep track of the current tax rules. For Example, in the last announced budget taxable income limit has been raised to 2.5 lakhs from 2 lakhs.
Not Sending the ITR-V: Filed an ITR online? But your responsibility doesn’t end there, after the e-filing one must send the ITR-V form duly signed to Income Tax Department Bangalore office.
So, if you are careful with all the points listed above than you might spend a few hundred or thousand bucks extra but it will definitely save you from the aftermaths of filing an ITR with discrepancy.