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SOME MISTAKES TAXPAYERS USUALLY MAKES WHILE FILING THEIR INCOME TAX RETURNS
- ๐๐จ๐ญ ๐๐ข๐ฌ๐๐ฅ๐จ๐ฌ๐ข๐ง๐ ๐๐ฅ๐ฅ ๐๐๐ง๐ค ๐๐๐๐จ๐ฎ๐ง๐ญ๐ฌย – if income taxย finds non-disclosure, they may send a notification in the future. Current tax laws also require you to disclose information on all bank accounts closed throughout the fiscal year.
- ๐๐จ๐ญ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐๐ฑ๐๐ฆ๐ฉ๐ญ ๐ข๐ง๐๐จ๐ฆ๐ ๐ฅ๐ข๐ค๐ ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ, ๐ ๐ข๐๐ญ ๐ซ๐๐๐๐ข๐ฏ๐๐ย – Mentioning all of these varied earnings together with their sources is required when filing ITR, even if such money is exempt from tax.
- ๐๐จ๐ญ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐ฅ๐จ๐ฌ๐ฌย – Many tax filers, particularly those who hide details of capital gains and losses when submitting their ITR, may face substantial repercussions, such as an Income Tax Audit.
- ๐๐จ๐ญ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐ญ๐ซ๐๐๐ข๐ง๐ ๐ข๐ง๐๐จ๐ฆ๐ ๐ข๐ง ๐ฌ๐ก๐๐ซ๐๐ฌย – It is now impossible to skip a share trading transaction with AIS and TIS visible.
- ๐๐ฌ๐ข๐ง๐ ๐๐ก๐ ๐๐ซ๐จ๐ง๐ ๐๐๐ ๐ ๐จ๐ซ๐ฆย – Using the improper form leads in a faulty submission that will be rejected by the Income Tax Department.
- ๐๐จ๐ญ ๐ฏ๐๐ซ๐ข๐๐ฒ๐ข๐ง๐ ๐๐๐ ๐จ๐ง ๐ญ๐ข๐ฆ๐ย – You have not completed theย tax filingย procedure until you have confirmed your income tax return. You currently have 120 days after submitting the form to verify your ITR.
- ๐๐จ๐ญ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐๐จ๐ซ๐๐ข๐ ๐ง ๐๐ฌ๐ฌ๐๐ญ๐ฌย ย – Residents who have foreign bank accounts or assets such as shares or stock in a foreign company must disclose these in their ITR.
- ๐๐๐ฉ๐จ๐ซ๐ญ๐ข๐ง๐ ๐ข๐ง๐๐จ๐ฆ๐๐ฌ ๐๐๐ญ๐๐ซ ๐๐๐๐ฎ๐๐ญ๐ข๐ง๐ ๐๐๐ย – Many taxpayers receive the bank statement and enter the receipt amount as income, not realising that the receipts are after TDS deduction.
- ๐๐๐ฉ๐จ๐ซ๐ญ๐ข๐ง๐ ๐จ๐ง๐ฅ๐ฒ ๐จ๐ง๐ ๐ฌ๐๐ฅ๐๐ซ๐ฒ ๐ข๐ง๐๐จ๐ฆ๐ย – When you change employment throughout the fiscal year, you do not report the income from your former position.
- ๐๐จ๐ญ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐ฌ๐ก๐๐ซ๐๐ฌ ๐ก๐จ๐ฅ๐๐ข๐ง๐ ๐ข๐ง ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒย – If you own unlisted shares in any company registered under the Companies Act of 2013, the details of these shares must be reported in your ITR filing.
- ๐ ๐๐ข๐ฅ๐ฎ๐ซ๐ ๐ญ๐จ ๐ซ๐๐๐จ๐ง๐๐ข๐ฅ๐ ๐ข๐ง๐๐จ๐ฆ๐ ๐๐ง๐ ๐ซ๐๐๐๐ข๐ฉ๐ญย ย – Before filing an ITR, taxpayers must reconcile all receipts and income with Forms 26AS, AIS, and TIS.
- ๐๐จ๐ญ ๐๐ซ๐-๐๐๐ฅ๐ข๐๐๐ญ๐ข๐ง๐ ๐๐จ๐ฎ๐ซ ๐๐๐ง๐ค ๐๐๐๐จ๐ฎ๐ง๐ญ– If you have not pre-validated your bank account, the IT Department will be unable to credit your income tax return.
- ๐๐จ๐ญ ๐๐๐๐ฅ๐๐ซ๐ข๐ง๐ ๐๐ง๐๐จ๐ฆ๐ ๐๐๐ซ๐ง๐๐ ๐๐ฒ ๐๐ข๐ง๐จ๐ซ ๐๐ก๐ข๐ฅ๐๐ซ๐๐งย – The revenue of a minor child is treated the same as income earned by the parent, necessitating income clubbing with parents.
- ๐๐ข๐ฌ๐ฌ๐ข๐ง๐ ๐๐ก๐ ๐๐ฎ๐ ๐๐๐ญ๐ ๐ ๐จ๐ซ ๐ ๐ข๐ฅ๐ข๐ง๐ ๐๐๐ญ๐ฎ๐ซ๐ง๐ฌ ๐จ๐ซ ๐๐จ๐ญ ๐ ๐ข๐ฅ๐ข๐ง๐ ๐๐จ๐ฎ๐ซ ๐๐ง๐๐จ๐ฆ๐ ๐๐๐ฑ ๐๐๐ญ๐ฎ๐ซ๐ง๐ฌย – While missing the deadline for filing returns can be remedied by paying a penalty, failure to file may result in the Income Tax Department initiating legal action against you.