ITR filing comes with several benefits but if done incorrectly, can create a lot of trouble for taxpayers. Here are a few things that need to be kept in mind while filing income tax:
Income Tax Return (ITR) can be a tedious task but it comes with many benefits. But you have to be very careful while filing ITR as committing mistakes can bring several complications. The last date for filing the tax returns is September 30, 2021, for the financial year 2020-21 (the assessment year 2021-22).
Therefore, it is advisable to quickly file the ITR so that the last moment rush doesn’t make you commit certain mistakes which can further impact income tax filing.
Taxpayers should avoid THESE mistakes while filing ITR:
Wrong assessment year
It is important to note that during the time of filing returns, it becomes absolutely mandatory to mention the correct assessment year. For FY 2020-21 the correct corresponding AY is 2021-22. Any wrong year increases the chance of double taxation and penalties.
Wrong ITR form
Different forms are given for different types of taxpayers and that calls for selecting the ITR form. Choosing the wrong firm can prove to create more difficult as it will become defective and one might get a notice to file the return once again.
TDS details
The form 26AS includes a summary of TDS and tax payments on the income such as salary, interest, or sale of immovable property. Therefore, one should always cross-check the TDS and tax payments with form 26AS.
Non-Declaration
A taxpayer is expected that he/she should ideally inform all about their bank accounts in India except dormant accounts and the taxpayer can choose the bank account in which they want to get their refund credited.
Incorrect details
The ITR forms come with several rows and columns that require adequate attention as the correct details have to be filled in a certain format.
