The deadline for filing income tax returns has been extended this time to 30 September 2021. There is still almost three months to file ITR. But some taxpayers wait till the last minute and make mistakes in the affair. Wrong ITR can lead to rejection. Hence it is important to know what mistakes should be avoided while filing income tax return.
1. Avoid Choosing the Wrong Form
It is important to choose the right ITR form while filing income tax return. If you make a mistake in this then the Income Tax Department will not process your form. The taxpayer has to choose the income tax return form according to his category. If your income is coming from salary and it is less than Rs 50 lakh per annum and there is no capital gains tax, then ITR 1 will be suitable for you, whereas if your income is coming from business or any other profession then you have to ITR -3 (ITR-3) has to be selected. If you fill the wrong form then you may get a defect notice. It has to be fixed within a time limit.
2. Do not write wrong assessment year
It is necessary to fill the correct assessment year in the income tax return form. If you fill the wrong assessment year then double tax can be levied. There may also be a penalty as well. So it is important to fill the correct assessment year.
3. Fill the personal details correctly
Name, address, mail id, phone number, PAN and date of birth etc. must be correct in the income tax return. You have to make sure that the same information as mentioned in the PAN has to be filled in the ITR form. Your bank information should also be correct. Also write the account number, IFSC code, etc. correctly so that there is no delay in getting the refund.
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4. Required to file return on income above 2.5 lakh
Your employer and bank levy TDS on salary and interest rate. It is necessary to file income tax return on annual income above Rs 2.5 lakh. You have to tell which tax was deducted. You have to claim TDS credit in your income tax return.
5. Not mentioning all sources of income is a big mistake
If you have any other source of income from your primary income, you must disclose it. Taxpayers are required to disclose savings account interest, fixed deposit interest, rental income from house property, all short term capital gains and income from other sources. Whether it is taxable or exempt, it is necessary to mention all the sources of income.
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