Filing ITR for FY19-20? Avoid making these mistakes

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.

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.

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.

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.

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.

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.