- Date : 10/12/2020
- Read: 3 mins
It’s time to file IT tax returns. But are you doing it right?
Every individual who is earning and falls under the tax bracket needs to file his or her IT returns. But many are unaware of how to do this, and often end up making costly mistakes. Here are some of the common ones you must avoid.
1. Giving incorrect information
There are certain staples you’ll be asked for when filing your returns: your full name, address, bank account number, IFSC code, and more. Keep this information handy so that somebody else doesn’t get your refunds!
2. Filing IT returns on the wrong platform
The government gives you the option to either file your tax return physically or do it online. However, if your assessable income exceeds Rs 5 lakh, it becomes mandatory for you to e-file your tax return. But if you are a senior citizen, you can still choose to file a physical return.
Related: How is taxable income calculated?
3. Not reporting income from all sources
All the income received from investments, lottery, and commission, should be brought under legal notice. On the other hand, money made from renting out places or income from shares and property gains must also be reported. Also, professionals who have switched from one company to another must include income from all their employers. Interest income from your savings account is exempt up to Rs 10,000, but interest income from your FD isn’t.
Related: How is taxable income calculated?
4. Not verifying returns
Filing IT returns isn’t the only thing you need to do: the next step is to verify them by either doing it online or manually. If you have filed online, then E-verification can be done by using your Aadhaar card. Otherwise, you can do physical verification by sending the attested and correct ITR along with other necessary documents to the department concerned.
5. Not mentioning foreign assets
As per the recent rules, you are also expected to report your foreign assets if any. Evading this may get you in trouble.
6. Not filing the IT returns on time
The date for filing IT returns is usually 31st July, and it’s in your best interest to fill it as soon as possible, to avoid any complications down the line. However, here’s what you can do if you miss the tax filing deadline.
How many times can you revise your IT return?
We’ll explain this with an example. If you have filed your tax return for FY 2015-16 on or before 5th August 2016, you can file a revised return any number of times up to 31st March 2018. However, this facility should be used sparingly as it may increase the chances of your return being selected for scrutiny, especially if it is resulting in large refunds for you. Revision is allowed only if the omission was unintentional, but if you deliberately file a false return, then you will be liable to be imprisoned under Section 277 and the offence will not be condoned by filing a revised return. Further, you may also have to pay 100 to 300 percent of tax due as a penalty for concealing income.
Every individual who is earning and falls under the tax bracket needs to file his or her IT returns. But many are unaware of how to do this, and often end up making costly mistakes. Here are some of the common ones you must avoid.
1. Giving incorrect information
There are certain staples you’ll be asked for when filing your returns: your full name, address, bank account number, IFSC code, and more. Keep this information handy so that somebody else doesn’t get your refunds!
2. Filing IT returns on the wrong platform
The government gives you the option to either file your tax return physically or do it online. However, if your assessable income exceeds Rs 5 lakh, it becomes mandatory for you to e-file your tax return. But if you are a senior citizen, you can still choose to file a physical return.
Related: How is taxable income calculated?
3. Not reporting income from all sources
All the income received from investments, lottery, and commission, should be brought under legal notice. On the other hand, money made from renting out places or income from shares and property gains must also be reported. Also, professionals who have switched from one company to another must include income from all their employers. Interest income from your savings account is exempt up to Rs 10,000, but interest income from your FD isn’t.
Related: How is taxable income calculated?
4. Not verifying returns
Filing IT returns isn’t the only thing you need to do: the next step is to verify them by either doing it online or manually. If you have filed online, then E-verification can be done by using your Aadhaar card. Otherwise, you can do physical verification by sending the attested and correct ITR along with other necessary documents to the department concerned.
5. Not mentioning foreign assets
As per the recent rules, you are also expected to report your foreign assets if any. Evading this may get you in trouble.
6. Not filing the IT returns on time
The date for filing IT returns is usually 31st July, and it’s in your best interest to fill it as soon as possible, to avoid any complications down the line. However, here’s what you can do if you miss the tax filing deadline.
How many times can you revise your IT return?
We’ll explain this with an example. If you have filed your tax return for FY 2015-16 on or before 5th August 2016, you can file a revised return any number of times up to 31st March 2018. However, this facility should be used sparingly as it may increase the chances of your return being selected for scrutiny, especially if it is resulting in large refunds for you. Revision is allowed only if the omission was unintentional, but if you deliberately file a false return, then you will be liable to be imprisoned under Section 277 and the offence will not be condoned by filing a revised return. Further, you may also have to pay 100 to 300 percent of tax due as a penalty for concealing income.
