Tax Return Filing – Common Mistakes And Anomalies

1. Non reporting of interest income from savings/ fixed deposits account:

These amounts can be sent directly from the individual bank account data and the 26AS model. “Non-reporting / reporting of these amounts is clear cases of tax evasion and calls for further investigation. In addition, taxes on interest income are sometimes deducted, and therefore the income mismatch is determined by non-reporting Easily.

2. Counterfeit invoices for HRA claims

Common fraudulent practices by staff requiring false HRA invoices without sufficient support, such as a lease, etc. In addition, there are not enough flows from their bank account to the extent of the claimed rent payments. Such apparent fraud will now call for punishment under the provisions of the Income Tax Act on the basis of recent advice.

3. Claiming false 80C discounts

It is very easy for employees to claim false 80C discounts such as LIC bills, Medicaid deductions etc. The value of fixed deposits is inflated without the actual flow of these investments.

4. Income derived from all employers shall not be considered

Persons who change the job must make sure that they consider the income from all employers when filing their tax returns. The  Income Tax Deptt. has this information already based on return TDS submitted by the employer and missing persons to report any such income that could lead to an investigation against them.

5. Claiming the wrong deduction under Chapter VI.A

There are a few tax professionals who try to lure taxpayers by promising to return the high funds and collect them 10 to 25% of the amount recovered. These professionals indulge in inflating or making false claims under various divisions of Chapter VIA, such as investing in the provision of u / w 80C taxes, interest loan education – u / w 80E, form of conclusion Medicaid policies – u / w 80D, Scheme – 80CCG u / s, donations – 80GGA / 80GG, 80GGC or other disability-related discounts or medical treatment for certain diseases – 80DD, 80DD, 80U.

With Aadhaar and PAN connected to all your bank accounts, loan account, demat account, and insurance policies, I-T management may be able to verify many of your claims digitally with the data available with it. In the event of any discrepancy, the investigation against the taxpayer may commence.

6. Submission of false allegations under article 10

Many taxpayers pay while filing tax returns indulged in making false claims under Article 10, viz. HRA, LTA, medical reimbursement, etc. Since last year the Tax Department began comparing data in tax returns with income as stated in model 16, model 16A, model 26AS.

7. Making false claims about capital gains

In the past, a few taxpayers attempted to provide taxes on their capital gains by filing false claims 54, 54F, 54EC, etc. A new ITR form requires submission of investment details that have been made under these sections. Furthermore, with the connection between Aadhaar and PAN with real estate transactions and financial account, it will be easy for the tax department to verify your claim electronically.

[frontpage_news widget=”879″ name=”Certicom – A Group of Chartered Accountants – Articles”]