Before knowing mistakes, do get to know a brief about e-filing submitting tax is every person’s moral duty. It shows how responsible people are. As we all are aware that internet is being used everywhere nowadays.
“Internet is also used for filing returns, using a tax preparation software which is already approved by relevant tax authority such as IRS or Canada revenue agency. This process is known as e-filing”.
It is necessary for all those individuals whose income increases more than 5 lacs
The following are the mistakes and solutions at the time of ITR:-
MISTAKE NO. 1) Not reporting capital gains
Many people do not report about capital gains. They fail to realize sale of assets like property, gold or silver and earn capital gains. It is absolutely wrong. Disclosure of everything while filing income tax is mandatory and must be adequate
MISTAKE NO. 2) House property taxes not paid
There is a misconception over the mind of many people that there is no income for more than one residential house. So no Income means no income tax. This is a big mistake people are doing.
SOLUTION:- Income tax act 1961 states that you are bound to pay tax if you own multiple taxes whether you are earning income from that or not, whether it is occupied or not it doesn’t matter.
MISTAKE NO. 3) Disclosing wrong salary figure in tax returns
The first question arouse in the mind of first time ITR fillers is “what salary figure should be shown?” They are in the confusion that what figures should be mentioned? And in this Dilemma they disclose wrong figures
SOLUTION: – please remark that ‘income from salary’ is not a big deal. It is all what has been given under ‘Income chargeable under head salaries’ in form 16.
MISTAKE NO. 4) CHOOSING THE WRONG E-FORM
Indeed there are seven e-forms, but only four are available for individuals. It is the duty of the person to choose the right form. If a wrong form is filed then return will be rendered invalid and defective. The software will select the form on the basis of data stored in system.
SOLUTION: – Everyone should be aware of changes incorporated in the forms.
MISTAKE NO. 5) Books of accounts not prepared
There are many people who do not prepare books of accounts specially the agents earning income in top companies for filing of income tax return. They will charge 100-300 RS for filing of ITR. They do not prepare books for accounts.
SOLUTION: – Report your side income from consulting, selling products, affiliate income for income tax return filing.
MISTAKE NO. 6) Calculation of TDS Details
Every salaried individual is eager to know the amount of tax deducted. The tax credit for TDS can be claimed in the tax return. Calculation of TDS details are left
SOLUTION: – it is that money which you earned by hard work. Why should you leave it on the IT department’s table? Pay what is legally due and save the rest of your money.
MISTAKE NO. 7) Mistakes in personal data
Personal data mistakes are most common in filing income tax. While you are e-filing income tax return, you have to put your personal details such as mailing address, date of birth, email address and phone number. Give all details correct.
SOLUTION: – All process of e-filing goes through e-mail. So get ensure to provide the active mail id. And seniors should provide the correct date of birth.
MISTAKE NO. 8) Missed the deadline
Sometimes people miss the deadline because they forget the time period of filing ITR. It can be accepted as filed when you send signed copy of ITR-v to the office
SOLUTION: – Sending signed copy just take few minutes. Then why to wait for 2 months?
Do it as early as possible
MISTAKE NO. 9) Math miscalculations
There can be a miscalculation in estimation of ITR if your math is poor or bad. Immediate notice has been sent by IT department if there will be wrong figures and it can reduce your tax refund.
SOLUTION: – For perfection in income tax return amount, you can use our income tax calculator for free. It will be most appropriate option if you are not good at math.
MISTAKE NO. 10) Misspelled or different names
ITR is all about numbers no doubt but sometimes spellings or words mean too. Some people name like taxpayer, her wife and children names do not match identification of social security council. Problem occurs there also where girls change name after marriage or change surnames.
SOLUTION: – It ensure people to notify about change in SSA else it will kick out or slow down processing of tax return.
In nutshell, don’t do the above mistakes mentioned else it can slow down the filing and taxation process and if it happens go through the solutions provided.