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14 IMPORTANT MISTAKES TAXPAYERS OFTEN MAKE IN FILING THEIR INCOME TAX RETURNS IN INDIA

1) Not disclosing all bank accounts - may send notice if future income tax non-declaration is identified. Under the current tax law, you are required to provide details of all closed bank accounts for the financial year.

2) Not showing concessional income like interest or gift - It is mandatory to mention all these different incomes along with their sources while filing ITR, even if such income is tax-free.

3) Does not show capital loss - Many tax filers, especially when submitting ITR, omit details of capital gains and losses, which can have serious consequences, such as income tax audits.

4) Trading in shares does not show earnings - since AIS and TIS show your stock trading transactions, it is now impossible to exclude them

5) Using the wrong ITR form - Using the wrong form leads to faulty filing which will be rejected by the Income Tax Department.

6) ITR is not verified on time - Unless you verify your income tax return, the tax payment process is incomplete. Currently, you have 120 days to verify your ITR after uploading the form

7) Does not show foreign assets - Residents or shares with foreign bank accounts, equity holdings in foreign companies, etc. Any assets must be disclosed in the ITR.

8) Reporting of income after deduction of TDS - Some taxpayers looked at the bank statement and entered the amount of receipt as income, not as the receipts are after deduction of TDS.

9) Reporting only one salary income - When you change jobs in a financial year, you fail to report your previous job income

10) Does not indicate shareholding in the company - If you are holding unlisted shares of any company registered under the Companies Act, 2013, the details of these shares should be recorded in your ITR filing.

11) Failure to reconcile income and receipts - Taxpayers should reconcile all receipts and income with Form 26AS, AIS and TIS before filing ITR.

12) Does not pre-certify your bank account - If you have not pre-certified your bank account, the IT department will not be able to collect the income tax return due to you.

13) Not declaring the income earned by the minor children - The income of the minor child is considered the same as the income earned by the parents, so it is necessary to combine the income with the parents.

14) Missing the return filing deadline or not filing your income tax return - When the filing deadline is missed, care can be taken by paying the penalty, but if not, the Income Tax Department may be invited to take legal action against you.

Regards

Santosh Patil

ICA & MBA
Founder & CEO

For filing your income tax return contact Alliance Tax Experts on 9769201316

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