11 Common Mistakes That You Can Make While Filing Income

Tax Return
June 29, 2016 - Income Tax e-Filing, Income Tax Help

(Last Updated On: February 10, 2017)

Season of income tax returns has commenced. You need to show your Income to Income Tax Authorities on or before 31st
July. By now, you must have received Form-16 and an instruction to le itr as soon as possible from HR Managers. But before
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 you start with filing process, lets look upon the common mistakes that people usually commit at the time of filing returns:

1. Not reporting interest from Saving bank accounts, Fixed deposits etc. Interest earned on saving bank account
balances or on xed deposits should be duly reported in ITR. If TDS has been deducted on any interest credited by bank
in case of xed deposits, it can be claimed in ITR. Details of xed deposit interest earned and TDS deducted thereof are
duly mentioned in Form-26 AS. In case of saving bank interest, interest earned up to Rs. 10,000 is tax-free. You can claim
the deduction on saving bank interest in sec 80TTA.

2. Not reporting income of other job If salary is earned from two or more employers in the same year, then income
received from all employers should be reported in income tax return. Also some persons ll dierent income tax return
for each Form-16 which is incorrect. Income received from all employers should be mentioned separately one by one in
a single form and TDS deducted from each employer should also be mentioned in the income tax it return.

3. Not checking the 26-AS statement 26-AS statement provides an insight of TDS deducted and deposited against PAN
number. Since in the income tax return, details of party, amount paid, TDS deducted etc. are to be mentioned, therefore,
26-AS statement proves to be a very helpful tool. It also helps in calculation of net tax liability accurately.

4. Not checking the bank statements Since all incomes received during a particular year are required to be mentioned
in income tax return, hence one should always check his/ her bank statement to consider amount of any gift received,
any interest received or any other income received. Now days, since ITR forms require mentioning the number of all
operative bank accounts, it becomes imperative to mention the exact incomes received accurately.

5. Not mentioning correct bank details Since refund of tax, if any, is credited directly to the bank account, hence it
becomes very important to mention correct bank details. Bank account number, Bank name and branch address, IFSC
code, MICR code etc. should be thoroughly checked twice before submitting the nal return as incorrect details can lead
to delay in receiving of refund amount.

6. Mentioning incorrect personal or correspondence details Due care should be taken at the time of quoting PAN in
income tax returns. Special attention should also be given at the time of mentioning address details, email-ID and mobile
number. Email-ID and mobile number already mentioned in previous income tax returns/ registered on income tax
website should be preferably mentioned. Now days, details of Aadhar Card number are also required to be submitted,
so ensure accuracy in filling the correct number.

7. Not keeping evidences of deductions claimed in return For all expenses/ investments claimed as deduction under
Chapter VIA (Children Tuition fees, LIC, PPF etc.), maintenance of records/ evidences/ proofs of expenses/ investments is
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 required. Claiming deduction without adequate evidences in hand can lead to disallowance of such deductions and
increase in tax liability at the time of scrutiny. So either have an evidence for a particular expense/ investment, or else
dont claim deduction of it.

8. Delay in return ling All ends that ends well might not be correct in case of return ling. If return is submitted after
due date, it is as good as ling return within due date. But in case of delay in tax e ling, certain rights are deprived.
Returns cant be revised. Losses if any occurring in other sources of income cant be claimed. Refund procedure also
gets delayed. Also, you will have to pay extra interest on amount of tax payable (if any).

9. Non-ling of tax returns This is the biggest mistake committed by most salaried employees. Under the impression of
myth Since my employer has deducted TDS from my salary, hence I dont need to le my income tax return they dont
file returns. If income exceeds basic exemption limit, income tax return is required to be led even if tax liability is zero or
all taxes have already been paid. Chances of excess TDS deduction from salary are also possible, hence le the return
within due date to claim refund of tax.

10. Not mentioning exempted income People tend to avoid reporting tax-free income like interest earned on Public
Provident Fund in their returns. Although, this mistake doesnt attract any nancial implications, but as a matter of
general practice, all tax-free incomes should be reported in return.

11. Not verifying the e-return Responsibility of ling the tax return doesnt end with e ling of itr. One has to verify his/
her return either by sending the signed acknowledgment (ITR-V) to CPC, Bengaluru by post or by e-verifying it through
the options available on income tax website. Income tax website gives the option to verify the return through Aadhar
card/ online banking/ bank account.

Beware of these mistakes when go ahead with tax e-ling. If you have any queries, feel free to reach us and our experts shall
always be ready for your help.

Author

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 Team Tax2win

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