Filing tax returns is generally considered a tedious experience by taxpayers. However, if you start this process a little ahead of time and have all the necessary documents, then this task can be easy for you (ITR Filing Tips). You should be aware of some mistakes that taxpayers usually make while filing returns and due to this, they get a notice from the Income Tax Department.
Not verifying Form 16 and Form 26AS data
Before starting to file your return, do not forget to download Form 26AS and Annual Information Statement (AIS). Both forms are available on the Income Tax e-filing portal (Income tax return file). It is necessary to match the existing financial records in 26AS such as TDS etc. with the details of Form 16. Any difference between the two can create problems for you and you may get a notice from the Income Tax Department.
Choosing the wrong ITR form
If you have chosen the wrong form while filing your return, you may receive a tax notice. For example, if you have earned capital gains from the sale of shares or mutual fund units (ITR form 16) and are using the ITR-1 form instead of ITR-2, you may receive a notice from the tax department for non-disclosure. Choosing the wrong form will result in your return being declared 'faulty'.
Not disclosing foreign assets
Many Indian employees, especially those in the IT sector, are posted abroad. In such a situation, they open bank accounts in those countries. However, many such people forget to mention these accounts when they come to India and file their returns. It is very important to keep in mind that even if the balance in your account is zero, it is necessary to mention such an account.
Not disclosing capital gains income
The AIS and Form 26AS contain complete details of the taxpayers' transactions, so information about any income cannot be hidden. If you do not provide information about the profit earned from the sale of shares or mutual fund units in the return, you may get a notice.
Claiming wrong exemptions
You may also get a notice in case of donating to political parties or fraudulently getting an exemption under Section 80C of Income Tax. Moneycontrol has already reported that the Income Tax Department is using technology to detect suspicious cases of tax exemptions.
Not keeping documents safe
If you have chosen to file returns under the old regime, then you should keep all the documents with you, based on which you have taken tax exemption. By doing this, you will be safe in case of any kind of investigation and you will not have to face any problem.
Not providing information about the previous employer
If you have worked for two companies in a financial year, then as per the rules you should take the help of a professional while filing the return. Such people have two Form 16. One Form 16 is provided by the current employer, while the other form is provided by the former employer. Do not forget to mention the income received from both companies in the return. AIS contains complete details about your income, so the details of both Form 16 will be visible in it.
Wrong bank account details
You get a refund only on the bank account number provided by you. If your bank account number is not correct, then your refund may get delayed. It is very important to be careful while providing account number, IFSC, bank name, and other details in ITR.
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