6 Mistakes That You Should Avoid While Filing Income Tax Return

You will surely be in a rush if you are filing an income tax return at its deadline. While filing it you declare about your income, deduction and tax payment. For this, you require various documents and forms. And while filing a tax return at the last minute, in rush, you might miss important documents and commit some mistakes. So here is the list of some common mistakes that you should avoid while filing Income Tax Return.

1. Avoid picking the wrong ITR Form

Picking up the wrong IRT form is one of the most common mistakes taxpayers does while filing an income tax return. It is very important to choose the right IRT form whether you file it online or offline. The main reason to get confused with the forms is that there are many forms to fill. According to the Central Board of Direct Taxes (CBDT), an individual taxpayer needs to file 6 out of 9 forms. And the other three forms will be filed by the company itself. The forms that individual taxpayer should file include ITR-1, ITR-2, ITR-3, ITR-4, and ITR4S. And the other 3 forms: ITR-5, ITR-6, and ITR-7 are filed by the firms. So, choose the right form to avoid mistakes. 

2. Mistaking with the personal details

Providing the wrong postal address and email address can cause issues as most of the communication is done through postal and email. Sometimes you end up giving the wrong email address due to which you might miss some important notifications. Whereas sometimes you give a wrong or old postal address which can cause arise issues. So it is very important that you avoid mistakes with your personal details.

3. Hiding some of the income sources

Not reporting all the income sources to the income tax department is a crime and it's not going to end well. Some of the people try to hide their other sources of income like interest earned from fixed deposits, bank savings accounts, dividends insurance and other schemes. Just reporting your salaries is just not enough, you should report all other income sources with the proof. You should provide the details of all the banks' accounts that you've held in the given financial year. And in case if you have any income investments under your child's name you must include that also.

4. Not declaring the real state property

Taxes are also applicable to your real state properties. Some of your properties may not be your source of income but its still values you. Suppose you own multiple resistance and houses, you need to pay a certain amount of tax to the government on those assets even if you are getting income or not. 

5. Avoid mistakes while claiming a tax deduction

It is very important to be aware of all the tax deduction that you can claim. Many of you might not know that about 10 tax deductions fall under section 80C to 80U. of I-T Act. You can claim for those tax deduction if you can eligible. There are some of the deductions like home improvement loan deduction, home rent deduction, a deduction for the medical expenses, etc which are not known by most of the taxpayer. Get an idea about all the deduction you are eligible and claim it to get the benefits.

6. Avoid delay in filing an income tax return

There is a penalty when you are filing IRT after the deadline. IRT filing the last date is July 31st, 2019. So if you are a small taxpayer whose gross total income is less than 5 lakhs then you need to pay Rs. 1,000. But if your gross total income is well and good then you might have to pay penalty worth Rs. 10,000 if you are late for even one day. Paying penalty for late filing of IRT is just waste of your earned money so avoid delay in filing IRT.