Income Tax Return: If you are filing returns, avoid these mistakes or else you will get notice

Income Tax Return: Many details have to be filed in income tax return, so it is possible that you make a mistake.

Even after paying tax and filing ITR, if you get a tax notice then you may be surprised. But, it can happen. In the last few years, income tax return filing has been completely transformed into an online process. However, since you have to fill many details and follow different steps, there is a good chance that you may make a mistake or you should fill any wrong information in it.

For example, you can choose an incorrect ITR form. You can mis-report any income, file wrong self-assessment tax challan details or file wrong TDS (tax deducted at source) details. Apart from this, you can also enter tax deduction account number or any other details incorrectly. Any such mistake can bring a tax notice to you. Here, let’s look at common mistakes that can happen to you. Also, we will also show how you can avoid making these mistakes.

Also Read: What is Pradhan Mantri Mudra Loan Scheme (PMMY) and how can you take a loan up to 10 lakhs

On filling the incorrect ITR form

Choose the same ITR form that applies to you. Shailesh Kumar, partner of Nangia & Company LLP, says, “The government has created different ITR forms for different types of taxpayers. This depends on things like their residential status, their income, the level of taxable income, the holding of a company or being a director of a company or a member of a partnership firm. Often taxpayers ignore these rules and choose the wrong form in such a situation. ”

In such a situation, it is very important to choose the right ITR form. If you file your return in the wrong ITR form then it will be declared invalid or invalid. In such cases you will get notice from the tax department.

Miss out

One common mistake that people filing ITRs make is that they forget to record their income. Your company deducts tax and gives you Form 16. But, is that what you have earned?

You get interest on a common savings bank balance. It is also taxable. Your investment may be small, but it should be disclosed. It may be that your Form 16 does not cover this earnings.

Says Kumar, “Many times taxpayers, especially salaried taxpayers, basically file their ITR based on their Form 16 or TDS certificate issued by their employer. So many times they forget to mention their second income. These may include interest income or any other income. Such details should be collected and you should have these details while filing ITR form. ”

While assessing the tax return, the tax department can notice this missing income and notice you.

Tax credits not matching

This means the difference between the tax credit claimed on your tax return and the records held by the income tax authorities. There may be several reasons for this information not matching. One of these is that you have filed false information. Or, the deductor has not submitted TDS to the tax department or it is not visible in your Form 26AS.

In such a situation, to avoid tax notice, match the tax deducted from income to TDS as seen in Form 26AS. If there is a difference, then correct it before filing tax return.

Claim wrong deductions

The Income Tax Department offers a variety of tax deductions for individuals under different sections like 80C, 80D and 24 (B). These deductions are available for investment or expenditure.

Apart from these, a variety of rules and limitations are observed when assessing these deductions and executions. Says Kumar, “However, many times taxpayers put a wrong amount or deduction under an incorrect section. This makes a difference in their taxability. ”

As a result, tax notices become mandatory. In this case, while claiming deductions, it is important that you have a good knowledge of tax rules. If you face problems, then it would be right that you take advice from a tax expert or chartered accountant.

Non-filing of tax return

It is necessary for you to file a tax return, but if you do not do so, then you are definitely more likely to get a tax notice. Remember, if your gross income is above the basic exemption limit – up to Rs 2.5 lakh for individuals below 60 years, up to Rs 3 lakh for those aged 60 to 80 and 5 lakh for those above 80 years. Till Rs – then you should file tax return. There are other standards based on which you should file tax returns.

Also, you should file the return before the last date. This year, the last date for filing tax returns has been extended to 31 November 2020. You can file returns even after that, till 31 March 2021, but you will have to pay a fine. You cannot file a tax return after March 31, ie, after the assessment year has passed.

However, forgetting is a human tendency, but avoiding things till the last moment creates chances of making mistakes. In such a situation, file the tax return as soon as possible and avoid making the above mistakes.

The post Income Tax Return: If you are filing returns, avoid these mistakes or else you will get notice appeared first on informalnewz.