Whosoever has income in India is supposed to pay income tax and the last date to file Income Tax Return is 31st July 2018. Filing Income Tax Return is a crucial task that’s why we will tell you about some of the common mistakes which people make while filing Income Tax Return.
- Failing to File ITR
The first and foremost mistake that taxpayers make is, they don’t understand the value of filing an ITR. Mind you not filing ITR can open doors for some hefty penalty for you. It is mandatory for everyone who have income to pay Income Tax and file Income Tax Return. Don’t take this process lightly and try to file your income tax return before the last date of filing.
A taxpayer must know which ITR Form he/she should file. All in all there are 7 ITR Forms and out f these 7 forms the taxpayers are supposed to choose the one form that suits them the best. Another common mistake that taxpayers make is, they choose the wrong year. You must know the current year is the assessment year and the previous year is the financial year. For e.g. Financial Year 2017-18 is also called Assessment Year 2018-19.
Either you earn income from one source or multiple sources, you must disclose all of it while filing Income Tax Return. In case you try to hide your income or misreport it, you are subject to some heavy penalty by the Income Tax Department.