Before filing ITR 2022-23, see if you are also making these mistakes
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Filing ITR is a complex law and we all are not experts in Income Tax law. It is possible that we may commit some mistakes while filing ITR online which may lead to unsuccessful tax filing and in some cases even penalty.
The last date for filing Income Tax Return (ITR) for the financial year 2022-23 is 31 July 2023. Hence, many of us, individual taxpayers, prefer to file our ITR manually. Filing ITR is a complex law and we all are not experts in Income Tax law. It is possible that we may commit some mistakes while filing ITR online which may lead to unsuccessful tax filing and in some cases even penalty. Having prior knowledge of common mistakes or errors can help you avoid them. This article throws light upon the 12 common mistakes that should not be made while filing your ITR online.
1. Waiting to file returns till the last moment
Most of us are such people who wait for the last date to do some work. But this habit of ours can harm us heavily in terms of filing returns. This year, you need to ensure that you file your return before 31st July. In fact, it is advised to file your ITR as early as possible as the due date approaches; The Income Tax website may hang due to overload. Not filing ITR before the deadline can lead to several penal measures, including penalty of Rs 10,000, additional 1% tax on unpaid taxes and delay in receiving additional tax.
2. Using wrong ITR form
Many taxpayers make the common mistake of using the wrong ITR form, which results in rejection of the filing by the IT department. Therefore, you should choose the ITR form carefully while filing your ITR. Here are some examples of ITR forms and who should use them:
ITR Form 1: Salaried Individuals
ITR Form 2: Salaried individuals whose income comes from capital gains from investments
ITR Form 3: Self-employed individuals whose income comes from profits of business
3. Not checking Form 26AS
Form 26AS contains information about your income; Advance tax paid, tax deducted at source (TDS), self-assessment tax paid, tax credit, if any, etc., make it an important document. Sometimes there can be a mismatch between the information in Form 26AS and Form 16 of the employer. Hence, instead of blindly relying on the details in Form 26AS, it is prudent to cross-check them with the information in Form 16 before filing your ITR.
4. Not reporting income from all sources
There can be additional income from sources other than your salary or business. This includes income in the form of rent from residential or commercial property, interest from fixed deposits, capital gains, etc. Sometimes taxpayers do not disclose all their sources of income and only disclose income from their salary or primary business. By law, you are required to disclose all sources of your income. If you have changed jobs during the financial year, you should also disclose the income received from your previous employer. Also, you should know that the income received by the minor is considered as the income of the parent. Hence, make sure to include the income of your minor child while filing ITR. However, if a minor is earning income from work using special talent or knowledge, they will have to file a separate income tax return.
5. Not reporting income from previous job
It also often happens that when you change jobs during the financial year, you miss reporting the income from the previous job. If no income is reported from the previous job or any other additional gig, a mistake is bound to appear in your TDS Certificate (Form 16) and Form 26AS. The tax department may send you a tax demand notice and ask you to pay additional tax dues.
It is always a good practice to verify this beforehand by getting Form 16/16A from your client.
6. Forgetting to send ITR-V to CPC
If the return is filed without digital signature and without Aadhaar based verification then a signed copy of ITR-V is to be sent to Bangalore branch of CPC. The time limit for this is 120 days from the date of filing. In many cases the assessee files the return on time but forgets to send the signed copy which will make the ITR invalid.
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