With the Income Tax Department changing the Income Tax Return (ITR) forms and additional details every year, it is important for taxpayers to ensure that they do not make any mistake while filing ITR. A mistake may result in the taxpayer having to file an amended return and may also face inordinate delay in getting the refund. To avoid all this, it is very important to have the right information from the very beginning. Here are five common mistakes that a taxpayer makes while filing ITR.
Wrong ITR Form Selection
Selecting the appropriate ITR form for filing the return is of utmost importance and is based on the nature of income or the category of the taxpayer. Selecting the wrong ITR form can get you a notice from the Income Tax Department.
giving false personal information
It is important to accurately disclose your personal details like contact number, address, date of birth and others. Further, the bank account details should be correct to ensure smooth processing of tax refunds, if any.
Not disclosing all sources of income
An individual can have different forms of income by which one can decide whether it will be taxable or exempt. One mistake that taxpayers usually make is that they only give information about their primary source of income.
Concealment of foreign assets/income
Individuals who qualify as ordinary residents are liable to tax in India on global income and are required to report foreign income and assets in the Indian tax return.
no errors
One missed or wrong score will put your money in someone else’s account or make you a defaulter. One mistake can hamper your tax filing and cost you a great deal. You should always check out any brackets or hyphens, ampersand signs, etc. you are using. You should keep a copy of your signed ITR form along with the proof of your filing.
first published:Jan. 17, 2022, 3:43 p.m.
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