File Your Income Tax Return Before 31st July 2024.
Income tax filing date is near so you have to file it with precaution because a small mistake can land you into a big trouble with the income tax department. Department can impose high penalty or even serve a notice.
Here are Nine mistake that can be happen while filing Income Tax Return by the taxpayers:
- Filing ITR using the wrong form
According to Income Tax Act 1961, an individual is required to report all the incomes and have to file Income Tax Return using the correct form which is applicable to the individual. If the taxpayer filed, the Income Tax Return using the incorrect form then it will be treated as Defective return and he will be asked to file revised ITR by using the correct form.
As per section 139(9), the individual will get 15 days to rectify the mistake and this time may be extended by assessing officer on an application by assessee. If the defect is not rectified within the limited time, then it will be treated as invalid return and the individual may face all the penalties related to non-filing of Income Tax Return along with interest. - Not reporting interest incomes
The individual is required to report all the incomes including the interest incomes received or accrued due to him in the previous financial year for which the Income Tax Return is filed. The person should carefully report all the interest earned from savings bank account, fixed deposit account, recurring deposit account, etc. under the head income from other sources.
The individual can claim deduction under section 80TTA on interest earned up to RS 10000 from post and bank saving accounts. - Not filing ITR
As per the Income Tax Act 1961, section 139(1) an individual is required to file Income Tax Return if the exempted Long Term Capital Gain along with Gross Total income exceeds the minimum exemption level.
Earlier many people don’t file their Income Tax Return as they have only Long Term Capital Gain which is exempted but now they are also required to file the Income Tax Return. - Not clubbing income
As per the Income Tax Act 1961, section 60 to 64 says that individual is required to add the income of his minor children, spouse, son’s wife, etc. to his income and after this his total tax will be calculated.
If the taxpayer misses the reporting of clubbed income, then he may face the penalties and have to pay tax due to him along with interest. - Not reporting income from last job
As per the Income Tax Act 1961, an individual is required to report all the incomes of previous financial year (for which the ITR is filed) while filing the returns. It the individual switched jobs during the financial year then he is required to report his income from previous job. If the individual not reported his income from previous job, then return will be treated as defective. - Not reporting exempt incomes
As per the Income Tax Act 1961, an individual is required to report all the incomes of previous financial year (for which the ITR is filed) while filing the ITR. He is also required to report his exempt incomes under the Exempt income schedule of ITR.
Also he can claim deductions on these exempt incomes. - Not reporting all bank accounts
Earlier an individual is required to mention only a single account while filing the income tax return but the assessment year 2015-2016 an individual is required to report all the bank accounts held by him in the year for which the return is filed. - Not declaring deemed rent/ expected rent
As per the Income Tax Act 1961, if an individual holds another house other the self-occupied house then he should report the expected rent under the head income from house property. If the individual not reported his income from this, then return will be treated as defective. - Failing to revise your income
If the individual has detected any mistake after filing the return, then the taxpayer must rectify his mistake by filing the revised return. If the taxpayer failed to file, the revised return then he may face penalties on this and have to pay due tax along with interest.
