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Common Errors In ITR Filing

Filing of Income Tax Return (ITR) is an essential and non ignorable part of every earning person. Anyone whose income comes under the purview of taxable income have to compulsorily file a valid ITR for the said assessment year.Since, this is a mandatory and indispensable document,it’s very crucial to file up an error-free Income-Tax Return to avoid any future hiccups. Here is the guide of the most commonly committed mistakes in filing of an ITR, which can not be overlooked and will help you to overview it’s correctness:

  • Incorrect Personal Details:
  • An enormous number of returns are rejected for incorrect personal details like name, bank account number, IFSC code and address.
  • This leads to delays in refunds. Hence, ensure that all the filled updetails are accurate.
  • Claiming Deductions Under Section 80C :
  • Employer’s contribution to EPF should not be included in claiming section 80C benefits.
  • Only the principal repaid on housing loan is eligible for section 80C.
  • Many other deductions are claimed under wrong heads leading to their rejection of the ITR and consequent arising of tax liability.
  • Failureto Disclose All Income Heads:
  • Certain heads ofincome are may be left out, faultily.
  • For example, Interest from Bank FD or Income from investments made in name of spouse/children or Income from previous employer.
  • Interest Income on Savings Account:
  • Interest received upon savings account up to Rs.10000/- a yearis not taxable.
  • However, the interest received has to be compulsorily mentioned in the return under the head ‘Income from other sources’ and claim exemption.
  • NonReporting of Exempt Income:
  • Exempted Income includes the Public Provident Fund (PPF) interests, dividends, Long Term Capital Gain (LTCG) from equities, maturity proceeds of insurance policies.
  • Such incomes are to be vitally mentioned in the separate annexure of ITR, reducing unnecessary income tax queries later.
  • Failure to Account for More Than One Property:
  • Any property owned by the assesse, may be self-occupied or vacant.
  • As per the IT Act 1961, only one property can be claimed as self occupied.
  • The other property is taxed at realisable municipal rates after deducting 30% for taxes and repairs.
  • Discrepancies in TDS Details:
  • Filing of returns without verifying Form AS26 credit of TDS (tax deducted at source) held with IT Department, is not acceptable.
  • If your employer or anyone else who has deducted TDS does not deposit the same with IT Department or fails to mention your PAN Correctly, that amount will not reflect in from AS26, leading to default.
  • Failure to Pay Advance Tax or Self Assessment Tax:
  • For the income upon which, TDS is not applicable, the individual is required to calculate the tax liability and pay Advance tax or self assessment tax before the closure of financial year, ie, 31st ofMarch.
  • The failure to do so will attract penalty of 1% per month from 01st of April of next financial year.
  • Filing of Incorrect ITR Form:
  • Many are unable to choose the correct IT Form due to lack of knowledge.
  • For illustration, lets say you are a salaried person, having owning one house, get some tax free allowances and getting interest on savings account. You may feel that you need to fill ITR 1. This is correct only if exempted income during the financial year is less than Rs.15000. If it is more than Rs.15000, then you are required to file ITR2.
  • Failure to Dispatch ITR V in time:
  • For those who are not having digital signature while e-filing IT return, it is necessary to send duly signed ITR V to CPC Bangalore by ordinary or speed post only.
  • Sign the ITR V in blue or black ink in the box provided. The ITR V has to be sent within 120 days of filing of return.
  • In case of failure to do so within the stipulated time, return will be treated as null and void.
  • Refiling of ITR, without Penalties:
  • At times people file returns without paying the applicable penalties, if any.
  • In that case, the ITR is rejected.

Incorrect filing of tax returns leads to uninvited hurdles and headache. Therefore, always try your best to avoid any mistakes. At Tax Avtaar, we lend you the professional help to overcome any such unforeseen dilemmas. We would be happy to serve you and do what is best in your interest.Ensure your mental peace by leaving up the technicalities upon us. It would always remain a pleasure and a honour to serve the nation with you as a medium. 


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