It is equally important to realise and recognise the mistakes in ITR filing. Therefore, the taxpayer should have the knowledge regarding the usual mistakes that can happen while filing Income Tax Return so that he can rectify those mistakes. As the new tax laws provide an option to the taxpayer to rectify his mistakes.<\/p>\n\n\n\n
Few Common Mistakes While Filing Income Tax Return<\/h2>\n\n\n\n
There are few common mistakes that can occur while filing Income Tax Return, which is as follows:-<\/em><\/strong><\/p>\n\n\n The\nselection of the right form of income tax return is dependent on the factors\nlike nature of the income or the category to which the taxpayer belongs.<\/p>\n\n\n\n Therefore, it is important for the taxpayer to select the appropriate form. On this mistake in ITR filing, the tax department sends a defect notice to the taxpayer and gives him a chance to rectify the mistake within a given time period.<\/p>\n\n\n\n Quoting\nthe wrong assessment year is one of the mistakes in ITR filing which can\nincrease the chance of double taxation and can attract unnecessary penalty to\nthe taxpayer.<\/p>\n\n\n\n Mistake\nin ITR filing beyond the time limit not only attracts penalty but also takes\naway from the taxpayer certain benefits which he could have claimed while\nfiling the ITR in time.<\/p>\n\n\n\n Furnishing basic personal details like the name, address, phone number, mail id, PAN, etc is essential so as to avoid the mistake in ITR filing. Thus, the taxpayer should ensure that the details tally with those given in the PAN.<\/p>\n\n\n\n The\ntaxpayer should disclose the income on which the tax has been deducted and\nshould claim credit for tax deducted at source in the income tax return.<\/p>\n\n\n\n Taxpayers\nhave to disclose income from all the sources including savings account\ninterest, any house property rental income, fixed deposit interests, short term\ncapital gain incomes or any other source. <\/p>\n\n\n\n These\nincomes must be disclosed even if it is not taxable or exempt. This mistake in\nITR filing can attract penalty and questions from the tax authorities.<\/p>\n\n\n\n It is important for the taxpayer to file returns while verifying with Form AS26 credit of TDS that is with the IT department. Thus, to avoid the mistake in ITR filing the taxpayer who has deducted TDS<\/a><\/strong> should deposit the same with the IT department and should mention PAN correctly so that the amount reflects correctly in Form AS26, not leading to any default.<\/p>\n\n\n\n The taxpayer is required to e-verify the filing of ITR through Aadhaar based OTP or demat account or net banking or he should manually send the signed copy of acknowledgement receipt of ITR within 120 days. This failure or mistake in ITR filing can invalidate the ITR filing.<\/p>\n\n\n\n While\nchanging job the new employer shall not consider the previous income of the\ntaxpayer and he shall get tax exemption on the new income. Therefore, the\ntaxpayer should keep that in mind.<\/p>\n\n\n\n The taxpayer who has income from sources where TDS is not applicable is required to pay advance tax before the closure of the financial year i.e. 31st<\/sup> March. This mistake in ITR filing shall attract a penalty of 1 % every month till the next financial year.<\/p>\n\n\n\n The taxpayers are allowed to claim deductions on certain expenses that are eligible deductions. Thus, the taxpayer can claim a deduction of up to Rs 1.5 lakh in a financial year by certain investments and expenses.<\/p>\n\n\n\n The taxpayer\u2019s mistake in ITR filing thinking that interest earned on NSC is tax free is totally wrong. But it is to be noted that the taxpayer can claim it as deductions under Section 80 C and must mention this income as \u201cincome from other sources\u201d to receive the 80 C benefit.<\/p>\n\n\n\n Read our article<\/b>:What is the Claiming Process of Income Tax Refund?<\/a><\/mark><\/p>\n\n\n\n There\nis an option to rectify the mistake in ITR filing. Section 139(5) of the\nIncome-Tax Act permits the taxpayers to rectify their mistake in ITR filing by\nfiling a Revised Income Tax Return. This section states that if a taxpayer\nafter filing their return discovers any mistake, omission or any wrong\nstatement then he is allowed to file for a revised return any time before the\nend of the respective assessment year or before the completion of that year\nwhichever is earlier.<\/p>\n\n\n\n Section 154 (1<\/strong>) – a rectification request under section 154 (1) is permitted by the Income Tax Department<\/strong><\/em>[1]<\/strong><\/em><\/a><\/sup> for correcting apparent mistakes in ITR filing like a mismatch in tax credit or mistake in filing advance tax mismatch, gender incorrectly mentioned, etc.<\/p>\n\n\n\n The list of the errors that can be taken care of by filing a rectification is given below:-<\/strong><\/em><\/p>\n\n\n\n It is important for the taxpayers to have knowledge about the usual mistakes in ITR filing and to acknowledge those mistakes and file for the rectification of the same within the limited time allotted. Income Tax Act provides with the provision where the taxpayer can rectify his mistake and file a revised Income Tax Return and should ensure that e-verification of the returns is done.<\/p>\n\n\n\n Therefore, the taxpayers must be cautious while filing the ITR and should try to avoid mistakes in ITR filing so as to keep away from penalties and other negative consequences which can impact his tax profile.<\/p>\n\n\n\n![\"Few](\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Few-Common-Mistakes-While-Filing-Income-Tax-Return.png\")
<\/figure><\/div>\n\n\nSelection\nof Incorrect Form<\/h3>\n\n\n\n
Mentioning\nWrong Assessment Year<\/h3>\n\n\n\n
Not\nfiling ITR in Time<\/h3>\n\n\n\n
Incorrect\nPersonal Information<\/h3>\n\n\n\n
If Tax\nDeducted, Then no Need to File ITR<\/h3>\n\n\n\n
Not Disclosing\nall Sources of Income<\/h3>\n\n\n\n
The Discrepancy in TDS Details<\/h3>\n\n\n\n
Not E-Verifying\nITR V Filed<\/h3>\n\n\n\n
Forgetting\nPrevious Job\u2019s Income<\/h3>\n\n\n\n
Failure\nto Pay Advance Tax\/Self Assessment Tax<\/h3>\n\n\n\n
Calculating\nDeductions that can be Claimed<\/h3>\n\n\n\n
Interest\non National Savings Certificate<\/h3>\n\n\n\n
What is the Rectification Procedure to the Mistakes in ITR Filing?<\/h2>\n\n\n\n
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Conclusion<\/h2>\n\n\n\n