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Income tax return: Key mistakes to avoid while filing ITR

Income tax return: Key mistakes to avoid while filing ITR

Income tax return: Key mistakes to avoid while filing ITR
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By Anshul  Aug 13, 2021 11:05 AM IST (Published)

It’s always suggested to file ITR soon and not wait until the last minute as hurry can lead to mistakes which might have a negative impact on the outcome of filing of returns.

While filing Income Tax Return (ITR) has several benefits, making mistakes in it can result in several complications. The due date for filing tax returns for individual taxpayers is September 30, 2021, for the financial year 2020-21 (the assessment year 2021-22).

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It’s always suggested to file ITR soon and not wait until the last minute as hurry can lead to mistakes which might have a negative impact on the outcome of filing of returns.
Here are the most common mistakes taxpayers should avoid while filing ITR:
Quoting the wrong assessment year
While filing the returns, one must ensure to provide the correct assessment year. For FY 2020-21 the correct corresponding AY is 2021-22.
According to ClearTax, mentioning the wrong AY increases the chances of double taxation and attracts unnecessary penalties.
Choosing the wrong ITR form
There are different forms prescribed for different types of taxpayers. So, 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.
Non-verification of TDS details with Form 26AS
The form 26AS carries a summary of TDS and tax payments on the income such as salary, interest, or sale of immovable property. Before filing, one should verify the TDS and tax payments with form 26AS.
Non-Declaration of all bank accounts
A taxpayer should declare all their bank accounts in India except dormant accounts. The taxpayer can choose the bank account in which they want to get their refund credited.
Entering incorrect details
The ITR forms carry several rows and columns that need to be filled out at the time of filing one’s income tax returns. The details have to be entered in a particular format, which if not done properly can lead to errors.
Filing returns inaccurately in case of more than one Form 16
In case an employee has more than one Form 16, he/she should consolidate all the incomes and thereafter compute the tax liability according to the applicable slab rate.
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