#FinancialBytes: Filing income-tax returns? Here are some mistakes to avoid
Filing income tax returns (ITRs) on time every year is very important. However, the process of filing ITRs can be quite daunting for many individuals. While most of them find it confusing or complicated, many tend to wait until the last-minute to file the returns due to which they might end up making mistakes. Here are some mistakes to avoid while filing ITRs.
Choosing the wrong ITR form is a huge mistake
I-T Department issues different forms for different taxpayers. Selecting the wrong ITR form for filing returns is a huge mistake one should avoid. Choosing the correct form is the first and foremost thing while filing returns. There are several forms as per different combinations and sources of incomes. So, not filling the correct ITR form would complicate and delay the ITR filing process.
Failing to declare all income sources in the ITR form
Individuals are required to disclose details of their income for all sources, even if those are not taxable, while filing returns. Such sources may include interest on savings accounts, fixed deposits, savings schemes, investments, etc. One should also declare investments made in the name of spouse/minor child. Failure to declare income sources may be treated as violation and I-T Department could issue a notice.
#3: Not declaring one's real estate properties
Individuals must also declare all real estate properties while filing ITRs. Tax is payable for all houses/properties they own and not just the house/property they currently occupy. They are liable to pay some tax even if they haven't earned any income from their unoccupied houses/properties.
Providing incorrect personal details while filling the ITR form
Another common mistake that individuals must avoid while filing returns is providing wrong personal details in the ITR form. The ITR might get rejected by I-T Department if there are errors in details like name, address, PAN details, Email ID, etc. Individuals may not also receive notifications if they provide incorrect details. Also, an individual's name in ITR form must match with PAN card.
#5: Not providing the correct bank account details
While filing ITRs, mentioning the correct bank account details along with the IFSC (Indian Financial System Code) is important. Incorrect bank details could lead to problems if there's any refund due to the individual. Providing accurate bank details will make the ITR filing process smoother.