Both private taxpayers have to file their financial disclosures, and July 31st of the appraisal year is the last day to do so. Most people appear to file returns in a panic at the last minute, which can often lead to committing certain errors from the end of the taxpayer. This would have a detrimental effect on the result of the filing of taxes for the prior year in which the money was received.
You could be trying to gather all the paperwork to file your returns as the tax filing deadline inches closer. But often, despite being really patient, we will make errors that can lead the tax department to bother us. Here are a few mistakes that you must avoid with your Income Tax Return Filing.
Choosing the wrong form
Different forms of tax return forms for various varieties of assessees have been defined by the Central Board of Direct Taxes. An ITR filed using an incorrect form would be viewed by the IT Department as a flawed return. Therefore you need to know which type of ITR to use. Its use of the incorrect ITR type will result in a flawed treatment of the return. Under Section 139(9), such assessees are given an intimation, telling them to rectify the error within 15 days. “If the error is not corrected, the return is regarded as invalid and will be considered by the I-T department to be an instance of non-filing,”
Not disclosing all your income sources
In the filing of returns, interest earned from banks, savings and fixed deposits, and the post office must be registered. Except if Form 15G or 15H has been filed, interest income should have been included in the return, so that the earnings are not excluded under Section 10, and the overall income reaches the permissible value not taxable.’ Do not commit missed income errors from some source as the ITR is being filed. The wage, interest received from the savings bank account, fixed deposit, etc., should be included. If you forget any information, you can get a note requesting clarification from the tax department.
Stating Incorrect Personal Information
Detailed consideration should be paid when completing their IT returns form, and accurate personal details such as name, date of birth, business address, PAN card number, home address, e-mail id, etc., should be issued. It is necessary to make sure that the information you fill out in the refund forms matches those on your PAN card.
In the ITR Type, there are some disclosure criteria classified in particular schedules that many of the assessees leave vacant or only fill in the columns with a rough guess. Usually, this is a tax blunder. When reporting properties held by you in foreign countries, you can pay special notice. With regard to keeping black currency, any difference can draw heavy penalties and even present criminal charges.
Quoting Wrong Assessment Year You must ensure that the proper assessment year is done before filing your returns. For instance, you have to write the appraisal year as 2017-18 when you are filing returns for taxes paid on benefits generated in FY 2016-17. Mentioning the incorrect year of measurement raises the risk of double taxes and generates unnecessary fines.