New Delhi. The last date to file Income Tax Return (ITR) for the financial year 2020-21 is 31 December 2021. The government has extended the deadline for filing income tax returns.
Taxpayers do not have much time left to file income tax returns. There are many benefits in filing ITR. But if something goes wrong in it, then loss can also be suffered. In view of this, today we are telling you about some mistakes that happen while filing income tax return so that you take care of it.
No verification of TDS details with Form 26AS
Form 26AS is a summary of TDS and tax payment. In this, information about income coming from salary, interest, sale of immovable property etc. is given. This Form 26AS and TDS details should be verified before filing the tax return. Taxpayers can download Form 26AS through income tax login. It is available on the e-filing portal of Income Tax.
Providing information about all bank accounts
A taxpayer has to give information about all his bank accounts while filing income tax return. However, this does not include inactive bank accounts. Taxpayers can also choose the bank account in which they want to receive the tax return.
Not disclosing information about all income sources
It is mandatory to give correct information about all the sources of your income while filing income tax return. This includes earnings from your previous employer, current employer, investments, etc. If information about any source is not given, it will be clearly visible in the TDS certificate and Form 26AS. In doing so, the Income Tax Department can send a tax demand notice after investigation so that the taxpayer can deposit the additional outstanding tax.
Choosing the wrong ITR form
Income tax return forms have also been prescribed for different types of taxpayers.
For example, ITR 1 is for those people whose annual income is up to Rs 50 lakh and their income comes from house property or other sources. Similarly, ITR 3 form is for those earning through business and profession. ITR 4 is for freelancers etc. That is why it is important to choose the right form while filing ITR. If the wrong form is filled then the income tax return filed by you will not be valid and income tax notice may also be received.
Declaration of capital gains on sale of assets
It is also necessary to give information about the sale, purchase or expenditure of capital assets in the ITR file. Even if the taxpayer claims to have made the investment by selling the capital asset, he has to give full details of the investment.
Information about interest earned on investments
The taxpayer also has to provide information about interest earned on fixed deposits, savings accounts, post office schemes, bonds and other investments. Interest earned on savings account is eligible for tax deduction. For people below 60 years of age, it should not exceed 10 thousand rupees. Talking about the interest received on FD, post office schemes, then there is a tax exemption of up to 50 thousand rupees.
Non payment of advance tax
Many a times it happens that taxpayers are not aware that they need to pay advance tax. A salaried person need not pay advance tax as employers are required to deduct applicable tax from monthly salary or TDS. However, if you have other sources of income, you should pay advance tax.
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