5 most common mistakes that you must avoid while filing ITR

Usually, we file our income tax for the financial year in March and then file its return for the assessment year in July. The majority of people wait until the deadline and then tend to file ITR in haste that results in many mistakes. Let’s discuss the most common mistakes that one makes while filing ITR.

• Choosing the wrong form

When you’re filing your ITR, then the most important thing is to choose the right form. But many people submit the wrong form, which is equivalent to non-submission of the form.  The form depends on the nature of the income and category of the taxpayer. It is better to take help from professionals like Inside Tax for Best Income Tax Return filing services in Delhi and other parts of the country to avoid such mistakes.  If you have already submitted the wrong forum, you may receive a defect notice that has to be rectified within the provided timeline.

• No disclosure of ITR when tax is deducted

Employers and banks deduct TDS on salary and interest income. If your annual income is more than  Rs. 2.5L, then it is mandatory to file ITR. Moreover, you need to mention the TDS which is deducted and claim credit for the same in the ITR to get accurate returns.

• Not tallying TDS with Form 26AS.

It is suggested to always check Form 26AS before filing ITR because it contains all the income and tax details like TDS, advance tax, etc. If your employer has deducted TDS, it must be mentioned in that form. So before filing Form 16, it is important to tally the amount from Form 26AS. If TDS is not mentioned in Form 26AS, you won’t be able to get a credit for tax deductions.  Mismatches in Form 26AS and Form 16 can lead to less refund.

Having Form 16 from more than one employers

When someone changes his job, then at the time of ITR filing, he will have more than one form 16s. One issued by the former employer and one from the present employer. Filing ITR  with multiple form 16s is complex, and hence one needs to pay special attention.  You have to sum up the income (from all employers) and consider it as aggregate income. But if you are still confused, then you should consider taking professional advice. You can contact Inside tax, experienced tax consultants and get their help in ITR filing.

Non-submission of advance or self-assessment tax

31st March is considered as the last date of the financial year in India, and hence one is suggested to pay the taxes before this date. Otherwise, one has to pay either interest or penalties. So when you are filing ITR, make sure that you have filed your income tax before 31st March; otherwise, you may have to pay interest of 1%/month that is applicable from the due date.

So, these were a common mistakes, and you must avoid them. These mistakes can lead to less refund and you will end up paying more taxes. You can also consider taking help from us. We will file ITR without any mistakes in no time.