Income Tax Return is a documentation that is filed and addressed to the Internal Revenue Service or the State Tax Board. This document includes the complete statement of income of an individual including all the debits and credits along with liable tax deductions or refund. Earlier when ITR had to be filed on a physical form, a lot of calculations were involved. Now e-filing an ITR has made it easier by taking care of all final calculations. But filling the data in an appropriate manner is necessary in order to avoid further hassles. Thus here are few mistakes that should avoid while filing an ITR:
Incorrectly Entering The Necessary Personal Details
All basic details like name, address, registered mobile number, e-mail id, bank account number, PAN number, bank IFSC code and other related personal information will be asked in the ITR form. Thus while filing your ITR, you must verify these details before submitting it online. Failure to enter your incorrect details will result in a mismatch that could lead to complicated problems. Take a proper note especially while filling details like the PAN number as providing the incorrect number will result in rejection of the filed document.
Not Listing Down All Sources Of Income
The sources of income of an individual are divided into two parts as per the ITR filing norms: Taxable Income and Income Exempt from Taxes. Many individuals make a mistake of not entering the exempt income. But this should be avoided. Remember that salaried individuals must report all the sources of their income. It includes the part of income that is exempt from taxes. For example, all returns generated by investing in mutual funds, National Pension Scheme, fixed deposits etc are liable for tax exemption. Yet they have to be reported in the ITR.
Unclaimed Tax Deductions Under Section 80C
Under the section 80C of the Income Tax Act, a list of investments is liable for tax deductions. If an individual has made these investments they have to claim the necessary deduction. Leaving a deduction unclaimed while filing ITR will result in heavy financial losses to be incurred. Thus after mentioning your sources of income, verify whether you have applied for a tax deduction or not.
Not Verifying Tax Credits
Form 26AS is a documentation of details related to an individual’s income, the deduction of taxes, any tax that has been advanced and other taxes. This documentation concludes the tax credits of an individual. These tax credits need to be reported while filing an ITR. If tax credits are not verified, there stands a chance of error while filing the ITR. These errors will create problems while applying for refunds and other tax claims.
Keeping The Filed ITR Unverified
Filling and ITR and submitting it is not the last step. To avoid all kinds of errors, an e-verification is done by sending a verification mail to your registered e-mail post submission. The verification is complete only after the main data processing center of ITR receives your digitized scanned signature and your Adhar number. In the absence of either or both, this procedure has to be followed: either physical verification is done by sending a signed copy via post or e-verification is done by uploading the scanned document and signature.