Mistakes Done While Filing Income Tax Return
Avoid following Mistakes
Forget Sending ITR V to Income Tax Department
Taxpayers are required to post an ITR V form to income tax department on the address -”Income Tax Department–CPC, Post Bag No.1, Electronic City Post Office, Bangalore – 560200, Karnataka” sending by regular Indian Post or Speed Post only. This form must be sent within 120 days of filing the e-form of income tax return.
Nearly 10% of Taxpayers to send ITR V every year.
From 2015-16, the department has introduced a new way of verification under which the tax payers are not required to send the ITR V form.
Incorrect Bank Account Number and IFSC code
The bank account number in ITR should in no case be less than 9 digits and an accurate IFSC code must be specified.
Incorrect claim of TDS
Taxpayers are required to mention the TDS amount after reconciliation of 16/16 A forms with form 26 AS or you’ll have to pay an additional differential income tax.
ITR filing without taking effect of Interest Payable under section 234A, 234B and 234C
You must pay tax under sections 243B and 243C. These sections are related to non payment or less payment of advance income tax than the amount required
Tax payers file ITR online after the validity has expired and ignore the interest due under section 234A. The tax payers need to pay the interest even if it’s delayed by a single day because the interest under this section is payable @1% per month
Interest under section 234A would be liable for the Assessment Year on the assessee if he delayed in furnishing an Income Tax return beyond 31 August 2015.
Selecting Incorrect ITR form
One must select the correct ITR form and check which one is applicable to them.
For Instance:-
ITR 1 form is useful only for an Individual assessee having Income from Salary/Pension, One House Property, Other Sources (other than lottery and race horses).
ITR 2 form is useful only for an Individual as well as HUF assessee having Income from Salary/Pension, House Property, Capital Gain and Other Sources and for assessee having foreign assets.
ITR 2A form is useful only for an Individual as well as HUF assessee having Income from Salary/Pension, House Property and Other Sources and not having foreign assets.
Intimation and Rectification
Income tax return, after filing, will be processed by the department and an intimation will be generated which will contain the comparison of details of income and tax.
If these details match with the return filed, no further action is taken. If there’s a mistake, a rectification application can be filed by the assessee to correct the mistakes within a period of four years from the end of financial year.
Online rectification is also possible.
Don’t forget to check Intimation after ITR filing which will clear that you need to file rectification application or not.
Revising the late filed Income Tax Return
Income tax return can be revised only if it was filed within time.
This mistake is possible only if the Income declared in Income Tax Return is less than Rs.5,00,000 and return is filed manually.
Foreign Assets, Bank Account, Aadhar Number and Passport Number
New Income Tax Return forms for the Assessment Year 2015-2016 have been released by the Income Tax Department on 22 June 2015 with some new requirements that are mandatorily required to be filled by an assessee (if applicable), some of those are:
Aadhar Number (if held)
Passport Number (if held)
iii. Details of all bank accounts held in India at anytime during the previous year (except dormant account)
Details of Foreign Assets and Income from any source outside India.
Incorrect information in Personal Information Schedule:-
Many assessees found to have filled incorrect TAN, Email Address, Mobile Number, Date of Birth & Residential Status,
An assessee should understand the fact that:
Incorrect TAN: Will not allow him to claim the Tax Deducted at source.
IncorrectEmailAddress: Will result in non receipt of all intimations from CPC and other communications.
Incorrect Mobile No.: Will result in non receipt of SMS based Communication.
Incorrect Date of Birth: Will result in Computation of higher taxes in case of senior citizens.
Incorrect Residential Status: Will result in Computation of higher taxes.
Incorrect Aadhar no.: Will not enable Aadharupdation and EVC verification.
Excess deduction claimed or Deduction claimed twice: - Many assessee claim excess deductions, specifically under section 80,80CCC & 80CCD(1) , an assessee should understand the fact the the maximum amount of deduction available under section 80C,80CCC and 80CCD(1) in aggregate cannot exceeds Rs.1,50,000.
At the same time many tax payers claim deduction under section 80G in excess by considering it under 100% eligible donation.
Claiming Tax without real payment of Self Assessment Tax
Some assessee claim Income Tax paid without the real payment of Income Tax , it may make an assessee an ‘Assessee in Default’ which may result in payment of interest @ 1% per month or part of month under section 220 & penalty under section 221 at an amount as determined by Assessing Officer.
At the same time, the Intimation received under section in respect of that return will create the demand for unpaid Income Tax along with Interest under section 234B & 234C (if applicable).
Leaving columns blank in ITR FORMS
Every taxpayer is required to fill all column of ITR form applicable on him (other than those specified optional)
If all the annexure, columns and statements are not duly filled in an ITR form then an Income Tax Return may be considered as defective return under section 139(9) and might be rejected by Assessing Officer.
An assessee should understand that the deduction under section 80G in respect of Donation is available only if all the requisites field in the schedule are duly filled in and the claim of Taxes paid and TDS is not available to the tax payer if he fails to give the complete details of it .
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
