Income Tax Notice: In a special show of CNBC Awaaz, tax expert told about the 11 mistakes due to which you can get income tax notice.
Income Tax Notice: The month of filing Income Tax Return is going on and still many people have not filed their ITR. Often many people file returns at the last moment and they keep complaining that the website got hanged, the power went out, why is the government not extending the last date for filing returns. In such a situation, many taxpayers file returns in a hurry at the last moment and end up making many mistakes. Today, in CNBC Awaaz’s special show Tax Guru, we had a special discussion on these mistakes. Tax expert Sharad Kohli told what mistakes most taxpayers make.
ITR Mistake No. 1
The biggest mistake that most people make is selecting the wrong ITR form. Which ITR Form you have to fill depends on what your income is and the nature of your income. There are 7 different types of forms available for taxpayers.
ITR Mistake No. 2
Many people enter their personal information incorrectly, such as address, PAN number, Aadhaar number, etc. If you enter the wrong PAN number, it can also reflect in someone else’s account. Therefore, you should fill the information carefully. In such a situation, an Income Tax Notice can also come.
ITR Mistake No. 3
While filing income tax return, you have to provide information in many ways. There are many blocks in different sections, in which you should fill complete information. Making incomplete disclosure is wrong.
ITR Mistake No. 4
The difference between TDS and income is quite common. There should not be a TDS mismatch in 26 AS. If this happens, you may have to answer to the department.
ITR Mistake Number 5
The mistake of late filing or non-verification is very common. 31st July is the last date for filing returns and if ITR is not verified after filing the return, it will be considered invalid.
ITR Mistake Number 6
Many times taxpayers fill wrong information of bank account, which they come to know when they do not get refund. If the name of the bank or the account number is wrong, then there can be a problem in your Income Tax Refund.
ITR Mistake Number 7
It is necessary to disclose the assets in the country as well as abroad. If you have not given the details of the foreign source from which you are getting income, then you may have to suffer a big loss.
ITR Mistake Number 8
The next mistake is related to the error in carry forward. Suppose if there is a long term capital loss and you do not carry it forward, then all your benefits can go away.
ITR Mistake Number 9
Schedule AL (Asset Liability) should not be ignored at all. Suppose if your income is more than 50 lakhs, then whatever property you have, it is necessary to show it in Schedule AL. If you do not show it, then your return will not be considered complete.
ITR Mistake Number 10
It is also very common to make mistakes in Income Tax Deduction Claim. This directly affects your tax liability.
ITR Mistake Number 11
ITR Mistake Number 11 is very important for stock market investors. Many investors are unable to differentiate between Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG). You get LTCG if you hold shares for 1 year, LTCG if you hold property for two years and LTCG if you hold any other asset like gold for 3 years. The rates of all these are also different. So be careful and avoid this mistake.
