North India Statesman
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Due to hasty or negligence mistakes while filing the Income Tax Return (ITR), the taxpayer can get heavy fines and notices from the tax department. Here 5 general mistakes are mentioned which should be kept in mind while filing income tax returns. By avoiding these mistakes, taxpayers can protect themselves from financial loss and legal digestion.
1. Not disclosing all sources of income
Many taxpayers do not give correct information about all the sources of their income. For example, it is common to forget the interest information received on bank savings accounts or fixed deposits (FD). This income comes under your tax slab, and even if banks deduct 10% TDS on FD’s interest, if your tax slab is high, you will have to pay the rest of the tax. If you do not disclose this, you can get notice from the Income Tax Department. Also, people who have recently changed their jobs, do not forget to include the income from previous jobs. The income made from investment made in the name of children should be included in the parents’ tax slab and according to that the tax should be paid.
2. Not paying tax on income from home property
People who have more than one house, they misunderstand that even if they do not get the fare from them, they will not have to pay tax. However, only the house in which you live is free from tax. HDFC Bank has said that you will have to pay tax on other houses which are empty or which do not get the fare.
3. Falling wrong email and postal address
Important information from the Income Tax Department is sent through email or post. Therefore, it is necessary to enter the correct and updated email ID and postal address. Even a small mistake can cause not obtaining important information.
4. Failure to report tax-free income
Some income, such as long-term capital gains, dividends, can be tax-free, but it is mandatory to enter them in ITR. This is because brokerage houses or investment companies give information about these income to the department. Hiding them can cause problems.
5. Do not verify it after filling the form
Mistakes may occur when filling online or offline form. Therefore, it is necessary to check it carefully after filling the form. Even if the form is filled by a chartered accountant (CA) or tax advisor, the taxpayer must check all the details themselves to ensure that there is no mistake.
It is important to take care while filing income tax returns. By avoiding these mistakes, taxpayers can protect themselves from the Income Tax Department notice and fine. Filing returns on time with correct information is necessary for financial security.
