July 13th 2022

SOME MISTAKES TAXPAYERS USUALLY MAKES WHILE FILING THEIR INCOME TAX RETURNS

𝐍𝐨𝐭 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐢𝐧𝐠 𝐚𝐥𝐥 𝐛𝐚𝐧𝐤 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 – if income tax 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.
𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐞𝐱𝐞𝐦𝐩𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐥𝐢𝐤𝐞 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭, 𝐠𝐢𝐟𝐭 𝐫𝐞𝐜𝐞𝐢𝐯𝐞𝐝 – Mentioning all of these varied earnings together with their sources is required when filing ITR, even if such money is exempt from tax.
𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐥𝐨𝐬𝐬 – 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.
𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞 𝐢𝐧 𝐬𝐡𝐚𝐫𝐞𝐬 – It is now impossible to skip a share trading transaction with AIS and TIS visible.
𝐔𝐬𝐢𝐧𝐠 𝐓𝐡𝐞 𝐖𝐫𝐨𝐧𝐠 𝐈𝐓𝐑 𝐅𝐨𝐫𝐦 – Using the improper form leads in a faulty submission that will be rejected by the Income Tax Department.

𝐍𝐨𝐭 𝐯𝐞𝐫𝐢𝐟𝐲𝐢𝐧𝐠 𝐈𝐓𝐑 𝐨𝐧 𝐭𝐢𝐦𝐞 – You have not completed the tax filing procedure until you have confirmed your income tax return. You currently have 120 days after submitting the form to verify your ITR.
𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐚𝐬𝐬𝐞𝐭𝐬 – Residents who have foreign bank accounts or assets such as shares or stock in a foreign company must disclose these in their ITR.
𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞𝐬 𝐚𝐟𝐭𝐞𝐫 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐧𝐠 𝐓𝐃𝐒 – Many taxpayers receive the bank statement and enter the receipt amount as income, not realising that the receipts are after TDS deduction.

Read More: 24 different investments and expenditures you can claim in 80C up to 1.5 Lakh while filing your tax returns

𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐨𝐧𝐥𝐲 𝐨𝐧𝐞 𝐬𝐚𝐥𝐚𝐫𝐲 𝐢𝐧𝐜𝐨𝐦𝐞 – When you change employment throughout the fiscal year, you do not report the income from your former position.
𝐍𝐨𝐭 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐬𝐡𝐚𝐫𝐞𝐬 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐢𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 – 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.
𝐅𝐚𝐢𝐥𝐮𝐫𝐞 𝐭𝐨 𝐫𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐞 𝐢𝐧𝐜𝐨𝐦𝐞 𝐚𝐧𝐝 𝐫𝐞𝐜𝐞𝐢𝐩𝐭 – Before filing an ITR, taxpayers must reconcile all receipts and income with Forms 26AS, AIS, and TIS.

𝐍𝐨𝐭 𝐏𝐫𝐞-𝐕𝐚𝐥𝐢𝐝𝐚𝐭𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐁𝐚𝐧𝐤 𝐀𝐜𝐜𝐨𝐮𝐧𝐭– If you have not pre-validated your bank account, the IT Department will be unable to credit your income tax return.
𝐍𝐨𝐭 𝐃𝐞𝐜𝐥𝐚𝐫𝐢𝐧𝐠 𝐈𝐧𝐜𝐨𝐦𝐞 𝐄𝐚𝐫𝐧𝐞𝐝 𝐁𝐲 𝐌𝐢𝐧𝐨𝐫 𝐂𝐡𝐢𝐥𝐝𝐫𝐞𝐧 – The revenue of a minor child is treated the same as income earned by the parent, necessitating income clubbing with parents.
𝐌𝐢𝐬𝐬𝐢𝐧𝐠 𝐓𝐡𝐞 𝐃𝐮𝐞 𝐃𝐚𝐭𝐞 𝐅𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 𝐨𝐫 𝐍𝐨𝐭 𝐅𝐢𝐥𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 – 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.

SOME COMMON MISTAKES MADE BY TAXPAYERS WHILE FILING THEIR INCOME TAX RETURNS
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The post SOME COMMON MISTAKES MADE BY Taxpayers WHILE Filing THEIR INCOME Tax Returns appeared first on Certicom.

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