The due date for filing of tax returns for individual taxpayers for FY19-20 (AY20-21) is December 31, 2020. It is important to file the ITR accurately in order to avoid any negative implications.
Here are some mistakes which every taxpayer should be careful of while filing ITR:
Quoting the wrong assessment year
While filing the returns, one must ensure to provide the correct assessment year. For FY 2019-20, the correct corresponding AY is 2020-21. Mentioning the wrong AY will attract unnecessary penalties, according to ClearTax.
Also read: Find out which ITR form is for you?
Furnishing incorrect personal information
It is essential that personal details such as name, address, mail id, phone number PAN, date of birth, etc are accurately mentioned in the return of income. Additionally, bank details such as account number, IFSC code, etc must be accurately mentioned in order to receive the refund on time and without hassles.
Choosing the wrong ITR form
There are different forms prescribed for different types of taxpayers. One should be careful while choosing the ITR form. A wrong form can render the tax return filed defective and the taxpayer may receive a notice to file the return once again.
Filing ITR without using all sources of income
While computing the ITR, it is vital to take into account all sources of income whether from previous or current employment or income from investments and file it under the appropriate ITR form. If any income (from a previous job) is not reported, then a discrepancy is bound to reflect in the TDS certificate (Form 16) and Form 26AS. The tax department can send a tax demand notice asking taxpayers to pay additional tax dues if any.
No declaration of income from capital gains on sale of assets
The ITR requires complete details of the sale of capital assets, purchase and expenses to calculate the capital gains. Also, in case the taxpayer makes investments to claim capital gains exemption, the details of the investment and capital gains exemption should be given.
(Edited by : Jomy)
First Published: IST