Tax season is upon us, and with it comes the annual duty to file your Income Tax Return (ITR) accurately and on time. While it might seem challenging, a smooth filing process can save you a lot of stress and taxes down the line. But even the most organized taxpayers among us can make common mistakes. To help you avoid these common mistakes, we’ve compiled a list of the common mistakes that can slip you up when filing your Income Tax Return (ITR). From choosing the right form to claiming the right deductions, this guide will ensure your tax filing experience is as effortless as possible.
Common Mistakes Individuals Make When Filing Their Income Tax Returns
Filing ITR using incorrect form
One of the first hurdles taxpayers encounter is selecting the appropriate form for their source of income. Selecting the wrong form can lead to errors and delays in processing. The Income Tax department has different forms (Sahaj-ITR-1, ITR-2, ITR-3, Sugam-ITR-4, etc.) for various taxpayer categories. You can file your ITR with Tax2win, which automatically selects the correct ITR form for you.
Incorrect personal and corresponding details
A simple typo in your PAN number or address could delay or even reject your ITR. Double-check all your personal information, including your phone number and email address, to ensure proper communication from the department.
Selecting the wrong assessment year
Another common error is selecting the incorrect assessment year, which refers to the financial year for which the tax return is being filed. Choosing the wrong year can lead to discrepancies in your tax filing.
Filing incorrect and incomplete bank details
Missing bank account details could hold up your refund. Providing accurate bank details is crucial for receiving tax refunds or making payments. Incomplete or inaccurate bank information can cause delays or even result in failed transactions.
Not reporting income from interest on savings accounts and fixed deposits
Every rupee counts! Many taxpayers overlook reporting income earned from interest on savings accounts and fixed deposits. This income is taxable and must be disclosed in the appropriate section of the tax return form.
Not reporting income from the last job
Did you switch jobs mid-year? Make sure to report income earned from both employers to avoid any discrepancies. Failing to report this can lead to discrepancies in your income statement.
Ignoring eligible exemptions and deductions
From HRA benefits to medical expenses, there are various deductions you can claim to reduce your tax liability. However, many taxpayers overlook these opportunities, resulting in higher tax liability than necessary. Research and claim all the exemptions and deductions you’re eligible for.
Not disclosing all assets and liabilities
While not directly impacting your tax liability for the year, disclosing all your assets and liabilities, including investments, properties, loans, and debts, provides a complete picture of your financial situation. Failure to disclose these accurately can raise red flags during tax scrutiny.
Forgetting to verify ITR within 30 days
After filing your tax return online, it’s essential to verify it within 30 days to complete the filing process. Failure to verify within the prescribed time frame can cause your filing to be invalid.
Concluding our journey through Income Tax Return filing, by avoiding these common mistakes, you can ensure a smooth and error-free ITR filing experience. But what if you could have expert guidance every step of the way? That’s where Tax2win’s online CA services come into play.
With Tax2win’s online CA consultation, you can breeze through the ITR filing process with ease. Their team of experienced CA consultants specializes in income tax return filing, ensuring accuracy and compliance with tax laws. Whether you’re a salaried individual, a freelancer, a business owner, or you have capital gains, you can hire a online CA for tax filing through Tax2win’s user-friendly platform.
