We come across this deadline – the income tax return filing deadline – every year and while there are those who have learned from their mistakes, there are still a few out there who are either filing their income tax returns for the first time or doing it so online for the first time or just not able to grasp the whole process.
For them we have put together a list of mistakes that you need to avoid at all time.
First and foremost is that you should’t wait the deadline to file your income tax returns. While it is July 31 already, make sure that for the next year you do so well ahead of time to avoid the last-minute rush. The government has simplified filing for returns by introducing online filing system, hence you must file your ITR ahead of the due date to avoid any errors or for rectifying the same.
Another thing that has been commonly noticed is that one the ITR has been filed, people don’t verify their returns. Until the returns are verified, the procedure of filing for returns remains incomplete. Taxpayers have two options for verifying the returns;
– Either sending the Income Tax Returns Verification acknowledgment to CPC, Bangalore within 120 days of filing the returns.
– Or an easier option would be, e -verifying your returns online.
There will be no requirements to send the ITR V if you e-verify the returns online. The procedure of e-verification can be done via net banking, Demat account, Aadhaar number and bank account number.
Ensure that your personal details are updated. To be eligible for e-filing benefits you must first register on the official website of the Income Tax Department. To achieve a flawless e-filing process you must furnish the accurate personal details like your postal address, date of birth, status, email ID, mobile number etc. It is also pivotal to make sure that your details are filled correctly in their designated columns. Any mistakes in your date of birth will result in you falling in the higher tax slab. The registration process can be tricky if you aren’t familiar with the norms and any incorrect information may lead to issues in the future.
Ensure your banking details are not incorrect. Even if claiming for refunds is not applicable to you, it is mandatory to furnish your bank account details. While e-filing, always double check to see if the name, account number, IFSC and MICR code of your bank account matches the credentials entered in the registration portal.
Report all bank accounts because not doing so is illegal as the Income Tax Department has clearly stated under its act that every taxpayer must mandatorily submit all the bank accounts registered in the name of the taxpayer. Also, if you have made a cash deposit of more than Rs 2 Lakh during the demonetization period (November 9, 2016-December 30, 2016), you must fill a specified column in the e-form to report the cash deposited.
Don’t overlook the differences in TDS figures while e-filing. If you do not pay attention to details then your application for returns will become invalid. Be sure to verify that the figures of TDS made on your income is reflected in form 26AS and it matches. Form 26AS will also verify the fact on the instance when your employer has made TDS from your income but hasn’t submitted the same to the Income Tax Department.
Do not provide wrong financial data as it is one of the biggest reasons for rejection of returns while e-filing is when your salary details contradict the TDS. Income from other sources such as house property income, short-term capital gains etc. should be clearly stated. There will be a lot of precision that needs to be met while submitting the credentials of your financial data so it is best to seek the console of tax specialists.
Report exempted income as well. The previous ITR forms consisted of a single column where you must report the income that has been exempted from taxation. The new forms, however, have been aligned with different columns where reports of exemption on dividend income and long-term capital gains must be mentioned specifically.
A lot of changes have been made on the ITR forms this year. Out of the total 7 ITR forms, you must make sure that you choose the one which is applicable as per your income type. For instance, last year ITR-4 was applicable for those having income from the business but this year ITR-3 is the form applicable for business entities. As a taxpayer, you must keep yourself updated on such changes while e-filing or else the Income Tax Department will reject a wrongly filled form.
To determine an accurate calculation of your income you must fill the complete form carefully in its right column while e-filing. If the computation results in a different figure from what you have entered in your form then check to verify which will be the correct figure and enter that in the form.