Income Tax Return: Mistakes to avoid while filing ITR

Income Tax return: It often happens that taxpayers file returns in a hurry at the eleventh hour and they end up filing the wrong details.

Income Tax return: An ITR must be filed by firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals with the Income Tax Department of India, Pic- PTI

Income Tax return: Income Tax return (ITR) – forms are used to declare net tax liability, claim tax deductions, and report gross taxable income. Income tax filing is a crucial process and it has multiple elements that taxpayers should keep in mind in order to avoid mistakes. It often happens that taxpayers file returns in a hurry at the eleventh hour and they end up filing the wrong details. This leads to a delay in receiving the return and taxpayers may also have to file the revised ITR.

Who should file ITR?

An ITR must be filed by firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals with the Income Tax Department of India. Individual taxpayers have a deadline of July 31, while businesses and other entities have a deadline that varies depending on their category.

Here is a list of things to keep in mind while filing an ITR:

-There are various ITR forms from ITR-1 to ITR-7 for various entities. Taxpayers should identify which category they fall into, and, accordingly, fill out the form.

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-Make sure to double-check details of PAN, Aadhar, e-mail address, bank account information, and so on in the pre-filled data.

-To calculate the actual TDS/TCS/tax paid, download AIS and Form 26AS. If you notice a discrepancy, discuss it with your employer/tax deductor/bank about it.

- Gather and thoroughly examine the documents that will be used to file ITR, such as bank statements/passbooks, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, and so on.

- Include all pertinent information such as total income, deductions (if any), interest (if any), taxes paid/collected (if any), and so on in the return.

- Submit your ITR by the due date as not doing so will invite penalties which can range from Rs 1,000 to Rs 10,000.

- The return of income can be filed once all of the details in it have been filled out and confirmed.

- E-verify the return after it has been filed.