Filing tax returns is usually considered a tedious experience by taxpayers. However, if you start the process a little early and have all the necessary documents with you, then this task can be easy for you. You should be aware of some mistakes that taxpayers usually make while filing returns and due to which they get a notice from the Income Tax Department
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. 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.
Here we are telling you about 10 such mistakes, which you should avoid while filing returns for 2023-24.
Not verifying Form 16 and Form 26AS data
Before you start filing 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. The existing financial records in 26AS, such as TDS etc., must be matched with the details in Form 16. Any difference between the two can create problems for you and you may receive 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 and are using 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 also 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
AIS and Form 26AS contain complete details of 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 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 exemption related documents safe
If you have chosen to file returns under the old regime, then you should keep all such documents with you, on the basis of 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 giving information about the income of 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 the companies in the return. AIS contains complete details about your income, so the details of both Form 16 will be visible in it.
Giving wrong details of bank account
You get 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 giving account number, IFSC, bank name and other details in ITR.
Filing return at the last moment
Postponing the work of filing return and taking it to the last moment can prove to be harmful. It is possible that you forget to mention many important information in a hurry. When the last date for filing returns comes, the crowd on the Income Tax Department website increases a lot and due to this, technical problems also start increasing at the last moment. Therefore, by filing the return a little before time, you can stay free from many types of hassles.
E-verification process not completed
The process of ITR filing is not completed by just filing the return. After this, verification of the return is necessary, after which the Income Tax Department will process it. You can verify your return using Aadhaar number through the e-filing portal of the Income Tax Department with the help of bank account, demat account etc. You can download the ITR-V form from the e-filing website and send it to the Central Processing Center of the Income Tax Department located in Bengaluru. Your verification is done 30 days after filing the return, the date of verification will be considered as the date of filing the return.
