Common Mistakes you must avoid while filing Your Income Tax Return

By | 8 July 2015

There was a time when compiling and filing your Income tax Return was a cumbersome taFinal msitakesk. Now that the things have gone online, the process has become much easier over the years.

However, we have noted that many assesee who generally file their return themselves at times make some silly mistakes. We encourage people to always file their return themselves, not only because it is not that rocket science but also because they should be involved in the process of their return filing.

However, mistakes should be avoided as much as possible, because it may make the return invalid or defective and failure to correct the same may result in levy of penalties or disallowance of carry forwarding of losses etc.

Here’s a list of a few errors you might make inadvertently. Read on, so you won’t make the same mistake.

1 – Getting numbers wrong: The various numbers of figures you have to fill in an Income Tax Return form is mind boggling. The common mistake generally tax filers make while filling in is giving incorrect their PAN and deductor’s TAN. You should check and double check these important codes without fail and make sure they are correct.

2 – Incorrect bank details: One of the most important particulars, especially in case of refunds is the Bank particulars like Account number, IFSC code etc.

Tax payers generally make mistake in mentioning IFS code of their bank branch. Refunds are no longer issued via cheques, and only through ECS. Therefore, it’s essential to ensure that correct bank details are quoted. Also, ensure that the bank account you’ve mentioned on the form is an active account. From this year, you have to mention all operational savings and current accounts held in your name. You don’t need to mention dormant accounts – that have been inactive for more than three years.

3 – Choosing the incorrect form: There have been some major changes in ITR forms this year. Every ITR form is different and applicable in different circumstances of assesees. In case of confusion, you can always see our article here which contains a listing of all forms and when they are applicable.

ITR Forms simplified for Your Convenience…

Keep in mind that if you choose the wrong form, it may be considered as a defective return or a failure to file return.

4 – Filling multiple ITR for multiple Forms 16: When you change jobs it’s common to get multiple Form 16s. You should show all Form 16s in a single return, and not fill multiple forms for the same.

5 – Not mentioning all sources of income: A simple notion that many tax payers have in their mind is that interest income from savings and fixed deposit accounts is not taxable or that the tax has already been deducted by the bank. Banks do deduct TDS on fixed deposits, but that does not mean you don’t mention the income in the ITR form. Please bear in mind that receiving income after deduction of TDS is not complete. You may have to pay more tax or eligible to receive a refund of excess tax deducted based on your tax computation and return filed.

Failure to mention all sources of income could get you into trouble with the IT department. Also don’t forget to mention income sale of shares or mutual fund units, income from real estate and the like. It’s best to gather documents of all your sources of income at one place before you start the ITR filing process.

6 – Sending ITR V to Bangalore: The process of ITR filing is complete only when the physical copy of ITR-V is sent to CPC Banglore income tax department. You get this ITR-V when you file the ITR online, and without Aadhaar number or digital signature. Ensure you send them a signed copy of the ITR-V, within 120 days of filing the returns online.

These are some of the common mistakes many taxpayers make while filing their ITR, make sure you are mindful of them when you file your returns this year