16 Jul 2018
#FinancialBytes: Filing your I-T Returns? Don't make these silly mistakes
Filing Income Tax returns (ITRs) is imperative for every working professional and business organization.
However, people tend to commit a lot of careless mistakes each assessment year, despite being aware of the financial and legal complications resulting out of such mistakes.
Here are the five most common mistakes which you should avoid while filing ITRs.
Not filing your I-T Return within the stipulated deadline
One should always keep track of the official deadlines as notified by the Income Tax department. Failure to file the ITR on time can result in heavy penalties.
The deadline for filing it is July 31. Notably, you will have to pay Rs. 5,000 if you miss the deadline and file it by December 31, and Rs. 10,000 if you file it after Decemeber 31.
Online v/s Offline
Filing a physical return when an e-return is required
There are two ways to file ITRs - online and offline. However, there are certain conditions that must be accounted for, before determining the method for yourself.
In case your assessable income is greater than Rs. 5 lakh for the FY concerned, filing an e-return is mandatory.
However, for senior citizens, a physical return is acceptable irrespective of the assessable income.
Always double-check your personal details to avoid silly errors
Seemingly trivial errors in your personal details like misspelled names, address discrepancies et.c could be irritatingly problematic, and the consequences of these mistakes might be profound.
Imagine your refund cheques getting delivered to someone else because of an uncalled-for error on your part. Doesn't sound pleasant, right?
Thus, it's always advisable to be extra cautious and avoid mistakes while filling in details.
Forgetting to verify your IT return
Apparently, a lot of people often end up not verifying their ITRs after filing.
However, it's important to remember that your job isn't over after filing the return - you have to go through the verification process as well.
There are two ways to do it - e-verification, or offline verification by signing and sending a physical copy to CPC, Bengaluru.
Wrong ITR form
Choosing the wrong ITR form is another common mistake
The Income Tax department has prefixed different ITR forms as per the needs of the individuals and companies concerned.
One must select the correct ITR form that technically applies to them. In case you're unsure which one applies to you, consult people who are familiar with ITR filing.
Otherwise, your return could get cancelled/rejected, and the department may ask you to re-file your returns.
You could end up losing refunds, paying penalties, facing prosecution
According to Chetan Chandak, head of Tax Research, H&R Block India, "Mistakes tend to happen with everything that we don't do frequently or regularly. If you commit mistakes in filing your taxes, you may end up losing refund, paying the penalty and facing prosecution."