After the pandemic cause, the deadline to file an Income Tax Return for years 2019-2020 has been extended to 10 January 2021. Merely one day is left to file an Income Tax Return for the financial year 2019-2020. Now. Taxpayers will have more time to pay their taxes and that is all because of this extension. The taxpayer has to be very careful while filing an ITR because if a mistake is made by the individual, then he/she will receive a notice from the department asking you to give an explanation and file the return once again. So, try to avoid such mistakes at all costs and file your ITR carefully.
- Not verifying TDS details with Form 26AS: Form 26AS is an annual statement that carries all the details like salary, the interest of sale of immovable property, etc. of the tax generated against the PAN of a taxpayer. It is easy to access this form from the ITR department’s e-filing portal by using a tax payer’s PAN card.It is important for every taxpayer to verify the TDS before filing an ITR with form 26AS.
- Hiding income from capital gains: It is required to share complete details of the sale of a property, purchase, and expenses to calculate total capital gain. In case of a taxpayer makes an investment to claim capital gains exemption, then the taxpayer has to provide all the details of the investment made and capital gains exemption.
- Wrong ITR Form: There are numerous income tax forms according to different taxpayers. ITR-1, also known as SAHAJ form is for those people with an income up to Rs. 50 lakhs. All the taxpayers have to link the Aadhaar Card with PAN on the Income Tax Department website. ITR-3 form is mainly used by an individual who has income from a proprietary business, carrying on a business for the profession, the person is an individual director in a company, income of an individual as a partner in a firm, etc. ITR-4 form also known as SUGAM is for Individuals, HUFs, and Firms (other than LLP) being a resident having a total income up to Rs. 50 lakh and having income from business and profession which is computed under sections 44AD 44ADA or 44AE. The taxpayers have to be extra careful while filing an Income Tax Return because a wrong form will be considered defective and the taxpayer will receive a notice from the taxation department to file the return once again.ALSO READ:List of all the states where schools are reopening with strict Covid19 guidelines
- Not showing all sources of income: Maintaining transparency is really important regarding your source of income. It is also important to take into account all sources of income whether from a current or previous job, Fixed Deposit interest rate income, savings account interest rate income, or any other income from investments, etc., and to file it under the appropriate ITR form. If any kind of income is not reported then there the taxation department will send a tax demand notice to the taxpayer, the taxpayer will be penalized to pay additional tax dues in the case.Avoid Common Mistakes While Filing Your Income Tax Return
- Not clubbing minor’s income: The taxpayer is required to include his/her income such as interest income as part of the income if any investment is made in their minor child’s name. The income generally gets clubbed with the parent whose income is higher among the two. Taxpayers can claim relaxation up to Rs. 1,500 per child for two children.