6 Mistakes you must avoid while filing Income Tax Return

Filing your income tax returns was once a cumbersome task. With things gone online, the process has become much easier over the years. But...

Filing your income tax returns was once a cumbersome task. With things gone online, the process has become much easier over the years. But, there's always a possibility of making silly errors. Here's a list of a few errors you might make inadvertently. Read on, so you won't make the same.

1) Getting numbers wrong: The amount of number you have to fill in an Income Tax Returns form is mind boggling. The most common mistake tax filers make while filling in is giving incorrect PAN and TAN. Ensure, you double check these numbers without fail.

2) Mistakes in bank details: The second one is bank account numbers. Tax payers often make silly mistakes while putting the IFS code of their bank branch. Refunds are no longer issued via cheques, and only through ECS. Therefore, it's essential to ensure you submit the correct bank details, like the 9 digit account number. Also, ensure that the bank account you've mentioned on the form is an active account. From this year, you have to mention all operational savings and current accounts held in your name. You don't need to mention inoperative accounts - that have been inactive for more than three years.

3) Mistakes in filing the correct form: There have been some major changes in ITR forms this year. Make sure you choose the correct form. You should be filling the form based on your source of income. Keep in mind, if you choose the wrong form, it will be considered as a failure to file returns. 

4) Filling multiple forms for multiple form 16: When you change jobs it's common to get multiple Form 16s. You should show all Form 16s in a single return, and not fill multiple forms for the same.

5) Mistakes in source of income: Another common mistake is failure in mentioning all your sources of income, both taxable as well as non-taxable. Many tax payers think that interest income from savings and fixed deposit accounts is not taxable or that the tax has already been deducted by the bank. Banks do deduct TDS on fixed deposits, but that does not mean you don't mention the income in the ITR form. Failure to mention all sources of income could get you into trouble with the IT department. Also don't forget to mention income sale of shares or mutual fund units, income from real estate and the like. It's best to gather documents of all your sources of income at one place before you start the ITR filing process.

6) Tie the loose ends: Make sure you complete the entire process of ITR filing. For instance, many fail to tie the loose end. Make sure that you send the physical copy of IRT-V acknowledgement to CPCBanglore income tax department. You get this ITR-V if you have filed the ITR online, and without Aadhaar number or digital signature. Ensure you send them a signed copy of the ITR-V, within 120 days of filing the returns online.

These are some common errors many make while filing ITR, make sure you are mindful of them when you file your returns this year

COMPILED BY:

CA. HARI RAM AGARWAL, B.COM(H),LL.B.,FCA,FDX, DISA(ICAI)