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Income Tax Return filing: Many of us find the process of filing income tax returns very daunting and hence it’s important to avoid errors. We take a look at some common mistakes that one should look out for when filing the tax return.
The initial step for anyone filing their Income Tax Return (ITR) involves ensuring the accurate selection of the appropriate ITR form, with detailed instructions provided in the annexures. Even when opting for online filing, comprehensive guidance is available to determine the suitable ITR form.
Once the applicable ITR form is identified, it’s imperative to ensure accurate reporting of all income sources. A common mistake individuals make is overlooking certain income sources. It’s crucial to gather all relevant documents. For instance, if you earn salary income, ensure you possess Form 16 from your employer and cross-check it with the pre-filled income in your ITR form.
Retrieve your Form 26AS from the income tax portal, which provides information about income and deducted taxes. Ensure that all income sources listed in Form 26AS are accounted for.
Additionally, download the Annual Information Statement (AIS) from the income tax portal, which offers comprehensive details of income from diverse sources. A prevalent mistake individuals often commit is overlooking the reporting of interest earned on their savings bank accounts. Although banks issue Form 16A for this purpose, the interest on savings might be overlooked unless you thoroughly review your bank statements.
By downloading your Annual Information Statement (AIS) form, you can ensure that various types of income, including savings interest that might otherwise be missed, are accurately captured in your income tax return.
If you’ve changed jobs within the year, you likely have income from two separate employers. Failing to report the income from your previous employer to your new employer can result in both employers applying standard deduction or slab rates. If both employers provide these benefits, it can lead to a shortfall when filing a consolidated tax return, resulting in interest charges during the return filing process.
Ensure accurate claims of deductions and maintain valid proof of deductions in your records as backup. This includes deductions related to contributions to provident funds, LIC, etc.
The initial step for anyone filing their Income Tax Return (ITR) involves ensuring the accurate selection of the appropriate ITR form, with detailed instructions provided in the annexures. Even when opting for online filing, comprehensive guidance is available to determine the suitable ITR form.
Once the applicable ITR form is identified, it’s imperative to ensure accurate reporting of all income sources. A common mistake individuals make is overlooking certain income sources. It’s crucial to gather all relevant documents. For instance, if you earn salary income, ensure you possess Form 16 from your employer and cross-check it with the pre-filled income in your ITR form.
Retrieve your Form 26AS from the income tax portal, which provides information about income and deducted taxes. Ensure that all income sources listed in Form 26AS are accounted for.
Additionally, download the Annual Information Statement (AIS) from the income tax portal, which offers comprehensive details of income from diverse sources. A prevalent mistake individuals often commit is overlooking the reporting of interest earned on their savings bank accounts. Although banks issue Form 16A for this purpose, the interest on savings might be overlooked unless you thoroughly review your bank statements.
By downloading your Annual Information Statement (AIS) form, you can ensure that various types of income, including savings interest that might otherwise be missed, are accurately captured in your income tax return.
If you’ve changed jobs within the year, you likely have income from two separate employers. Failing to report the income from your previous employer to your new employer can result in both employers applying standard deduction or slab rates. If both employers provide these benefits, it can lead to a shortfall when filing a consolidated tax return, resulting in interest charges during the return filing process.
Ensure accurate claims of deductions and maintain valid proof of deductions in your records as backup. This includes deductions related to contributions to provident funds, LIC, etc.
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