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Common errors to avoid while filing Income Tax Return online

Common errors to avoid while filing Income Tax Return online

Common errors to avoid while filing Income Tax Return online
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By CNBCTV18.com Jun 23, 2022 5:23:48 PM IST (Published)

According to the Income Tax department, ITR filing for AY 2022-23 is now available on e-filing portal. For individual taxpayers the last date to file ITR for FY 2021-22 is July 31, 2022.

Income Tax Returns (ITR) filing is now available on e-filing portal and the Income Tax department has asked the taxpayers to become an early filer.  "Check your Form 26AS, AIS and other relevant documents before submission. Be an early filer," tweeted I-T department on June 22.

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For the individual taxpayers, to whom tax audit is not applicable, the last date to file ITR for FY 2021-22 is July 31 while for taxpayers to whom tax audit is applicable, the ITR filing due date is October 31. The businesses that need TP report can file the ITR by November 30.

During the ITR filing period, taxpayers are required to get and verify several documents. However, many taxpayers miss small details that lead to errors in ITR filing online.

Here are some common errors that you should avoid while filing your Income Tax Return online.

1. Not cross checking Form 26AS statement

You should double-check Form 26AS before filing ITR. The form contains information about your income, tax deducted at source (TDS), advance tax paid, self-assessment tax paid and more. All salaried individuals must cross-check their information with the employer’s Form 16 and Form 26AS.

2. Providing incorrect personal information

Always make sure that you provide correct personal information. Taxpayers often make mistakes while providing information such as PAN details, email ID, date of birth or incorrect bank account number or IFSC code. These seemingly harmless tax filing mistakes can lead to delay in refunds, rejection of your filing by the tax authorities or result in penalties, penal interest charges and even a tax audit.

3. Not sending ITR-V to CPC

If you are filing returns without a digital signature and Aadhaar based verification, then a signed copy of ITR-V is to be sent to the Bengaluru branch of Income Tax Department Centralised Processing Centre (CPC) within 120 days of e-filing. Failure to do so will invalidate the ITR filing.

4. Forgetting to mention exempted income

Many taxpayers assume that since exempt incomes are not taxable, they are not required to be mentioned in ITR. However, that’s not true as all taxpayers are required to file an ITR if the gross income exceeds Rs 2.5 lakh regardless of exemptions.

5. Forgetting to mention income from all sources

Make sure you disclose all your sources of income even if you are a salaried individual. You might have additional income such as rent from property, interest from fixed deposits, dividends from equity shares, capital gains etc. Mentioning all your sources of income is mandatory even if such income is exempt from tax.

6. Not paying advance tax

A salaried individual does not need to pay advance tax because employers deduct the applicable tax from the salary in the form of the monthly TDS. However, if you are self-employed or have you had other sources of income, apart from salary you need to pay advance tax. If advance tax is not paid on time an interest is levied on the dues.

7. Not verifying ITR

Your tax filing process is incomplete until you have verified your ITR filing. A period of 120 days is available to verify your ITR after submitting your completed ITR form.

You can currently verify your ITR by:

  1. Sending a signed physical copy to the CPC, Bengaluru.
  2. Using E-verification via Aadhaar OTP.
  3. Using online verification via Internet banking service of a bank.
  4. Not Declaring Income by Minor Children.
  5. Any income earned by minor children must be clubbed with the parents’ income when computing taxable income. Also, if the minor child earns an income from work using special knowledge or talent, then the minor child has to file an ITR separately.

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