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Show Me The Money: 7 Mistakes To Avoid While Filing Your Income Tax Return

Show Me The Money: 7 Mistakes To Avoid While Filing Your Income Tax Return

By now, we're sure that you know the last date of filing your Income Tax Return this year has been extended from 31 July to 31 August. This move by Central Board Of Direct Taxation or CBDT came as a respite to many taxpayers. Delay in the release of ITR utilities, continuous updating of the schemes and first-time implementation of the GST were some of the reasons the filing was delayed.


Are you still panicking? Well, fret not, because it's not as difficult as everyone seems to think. The process is fairly simple when you do it online and you can easily avoid these common mistakes people make while filing their return.


1. Pick The Right ITR Form


The Income Tax department has issued different forms for different types of taxpayers. Even for individual taxpayers, there are four types of forms, so make sure you've picked the right one. A wrong one will only complicate the process so be sure of what you're filling. There are about seven types of forms and you'll find the details about the form that applies to you easily on the website.


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2. Be Careful Of The Year


The financial year is the year you're filing for and the assessment year is the year you're filing in. For example, this year, you're filing for the financial year 2017-18 in the assessment year 2018-19. 


3. Do Not Miss Your Interest Income


Interest income is very confusing. Most people assume that all interest income is tax-free but that's not the case. Under Section 80TTA only interest income from savings bank account is tax-free up to Rs 10,000. Interest income from fixed deposits is still taxable, so mention that!


4. Complete Your Details


Fill ALL your details in the KYC form. Your name, phone number, email ID, bank account number, Pan and Aadhar details should all be correct for a smooth processing and timely refund. Earlier, you needed to disclose only one bank account where the return would be processed but now all bank account details need to be declared.


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5. Match The Amount


The Form 26 AS is the one that gives you a consolidated statement of the total TDS during the year. This amount should match the amount in form 16 and 16A. If you've changed jobs during the year, ensure you declare that salary as well otherwise your return will be incomplete and you might not get a complete refund.


6. E-Verify


Your process of filing return is only complete when you submit the ITR-V form. It is an acknowledgement that you receive after e-filing the return. It can either be verified online or through a copy mailed to the IT department by normal post within 120 days of filing.


7. Mention Foreign Income And Exempt Income


This is a very common mistake. Exempted incomes like long-term capital gain and dividends need to be declared. Just because they are exempted does not mean you do not disclose them. Even the income from foreign sources needs to be disclosed. 


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Images: Giphy, Shutterstock


As a responsible citizen of the state, file your ITR on time and correctly!


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Published on Aug 12, 2018
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