Taxpaying and filing ITR on time is very important as it may cost penalties to a person including a penalty for late filingAt the time of filing ITR, one is always worried about committing mistakes. This article is about some of the common mistakes to avoid while filing ITR. One can file ITR hassle free, considering these mistakes in mind.

Common mistakes while filing ITR

  • Incorrect Details

Mentioning correct basic details is important such as PAN, personal information, bank account number, email id, etc. Sometimes taxpayers get so confused that they forget to enter important information, or the blanks filled but with errors. The information which is used by the income tax department such as email address and contact number is vital and cannot afford any flaw.

It is an incorrect faith of not reporting an income which is exempted from tax. A taxpayer ought to report all types of incomes like a sale of shares, interest earned on a savings account, rental income, etc. make sure report is accurate. Therefore, it is important to keep a full record of incomes and maintaining the income statements.

It is important to fill the right form that is applicable. Choosing incorrect form and then filing it may lead to the rejection of ITR.This is one of the common mistakes that a taxpayer make.

  • Failure of claiming deductions

It is a very common mistake of failing to claim tax deduction under section 80 of Income Tax Act. Therefore, it is important to mention all the tax deductions at the time of filing ITR.

  • Claiming Tax without Real Payment

Some assessee claim Income Tax paid without the real payment of Income Tax. This may make an ‘Assessee in Default’ which may result in payment of interest 1% per month or part of a month under section 220 & penalty under section 221 at an amount as determined by Assessing Officer.

At the same time, the Intimation received under a section of return will create the demand for unpaid Income Tax along with Interest under section 234B & 234C (if applicable).

Every taxpayer is required to fill all the column of ITR form applicable to them (other than those specified optional).

If all the annexure, columns and statements are not duly filled in an ITR form then return may be considered as defective under section 139(9) and might be rejected by Assessing Officer.

Filing ITR is not the end process, verifying the ITR once it’s filed is also important. Once ITR is submitted simply e-verify income from home/office.

Three ways of e-verifying:

If you stick to the points mentioned above, you can file the ITR without any errors and avoid mistakes while filing ITR. Otherwise, it attracts penalties which may lead to monetary losses with a lot of time and effort.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.