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ITR filing: Precautions to take while Income tax return filing?

Often, people get more returns while doing income tax return filing in the pursuit of higher returns, if you come under the income tax department, doing so, then the income tax department can be prosecuted against you.

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During filing income tax return please don’t do these mistakes, otherwise it will create lot of problems for you. The income tax department also keeps you an alert from time to time to avoid these mistakes.

Income Tax Return File – Income Tax Return Filing

As you all know, the new finance year has started on 1st April. All employers and business people have to file his Income Tax Return (ITR) of Financial year 2018-19 and AY 2019-20 in time. For this, updated ITR form’s has already been issued from the Income Tax department.

Income tax return filing

While filing an ITR, you have to be careful about certain things, if you make a mistake while filling ITR, then you may have trouble in the future. The Income Tax Department also keeps awake from time to time to avoid these mistakes. Read further few such mistakes, which often occur when filling ITRs.

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ITR Filing Mistakes

Now, it’s time to filing Income Tax Return. Many of you will be filing ITR for the first time. At the same time, many rules related to ITR have changed. In such a way, there may be some mistakes done by the users, while filing returns. However, taxpayers have the option to correct the mistakes through revised returns. If the mistakes of the time were not corrected then the penalty may charged. Today, in this article, we will tell you about some of the common mistakes happening while filing a income tax return.

Do not make this mistake while filing ITR

Must show interest on savings

When filling an income tax return, definitely show interest on the savings. If you do not show your income, then it will be seen as tax evasion and action can be taken against you.

Explain the full source of income

Some people do not clear some sources of income while filing ITR. They argue that it is not necessary to clear all the stuff in the ITR filling. But in reality this is not so much. When filling the ITR, you should give accurate information about the income from a savings account, fixed deposit or any other investment.

If you try to hide anything, then in the future it can be a problem for you. When the information is hidden, the Income Tax Department considers it a tax evasion.

Do not fill in wrong ITR form

The Income Tax Department has set up several ITR forms. You must choose your ITR carefully to enter your tax. Otherwise, the tax department will reject it and you will be asked to file a revival return.

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If you have entered your income or savings incorrectly then there is no need to worry because you can correct returns by filing a revival return. Therefore, if there is a mistake in your filed return, you should not wait for a notice from the tax department before taking any action. Instead, you should immediately file a revised return.

There are different forms to file income tax. These forms are in accordance with your income and details. For example, people working people form Form-1. Those who have annual income of 5 million or more, they have to fill ITR-2. Apart from this, ITR-3 is filled on behalf of such people and Hindu undivided family whose annual income includes income from business, house property and other sources.

Details of the income from the previous company

Keeping in mind when filling income tax returns, keep in mind that if you have quit your job during the year and are in a different job, file a return of income from both companies while filling the return or you may have to face difficulties.

Read Form 26AS carefully

Form 26AS or tax credit statements give all the details of the taxes you pay. Be sure to check it before claiming your tax refund. This will save you from any kind of mistake in tax calculation so that you will be able to file a correct tax return.

During income tax return filing season, you come across two income tax forms very frequently that is Income Tax Form 16 and Form 26AS. Income Tax Form 16 specifies details of your salary income and tax deducted and deposited by your employer whereas Form 26AS gives overall view of tax deducted for your PAN at various sources.

Do not Hide Capital Gains Loss

Filing a return does not mean that you only have to give details of your earnings. Often, capital gains also cause us loss which we do not show in ITR. Doing this is wrong because you can reduce your taxable income by adding Loses to your earned income in any year. Also, you can also carry carrier for the coming years in the future.

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Do not give wrong personal information

Fill all your information in the correct ITR form. Note that information like your name’s spelling, email, contact number are identical in your PAN, ITR and base. You will find it hard to get a refund if you give wrong information. If any of your information goes wrong, you may be issued notice by the Income Tax Department.

Verify tax return

For the first time people filing tax files make this mistake a lot. He thinks that his work is finished after he fills his tax returns. But after filing the ITR you must have to verify it. You can either e-verify your tax from your e-filing portal of tax income or send it to CPC-Bengaluru and also verify it.

File timer ITR

Some people take out the entire time by filing an ITR one day. If you are one of them then do not do this and upload ITR from time to time. Delaying the ITR filing may require you to pay a penalty, which gives you additional burden.

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