As soon as the time of Income Tax Return (ITR) filing comes, people start filling the form in a hurry, but in this hurry many times there are many mistakes that can put you in the mess of heavy penalty and tax notice. If you are also preparing to fill the ITR without thinking, then wait! Here we are telling that the 5 most common mistakes made while filing ITR, which you can save yourself from financial loss by identifying in time.
Not telling all income sources
People do not report all their income sources properly. The bank’s savings accounts and fixed deposits (FDs) often forget the income of interest received. This income is taxable according to your tax slab. Banks deduct 10% TDS on the interest of FD, but if your income tax slab is high, then you have to pay the rest of the tax. If you do not tell these income, you can get notice of Income Tax Department.
If you have changed the job recently, then you should also include the income received from your previous job in the filing. If your children’s names are investment, then keep in mind that their income is added from their parents with the tax slab of the high income and the tax has to be paid accordingly.
Not paying tax on income from home property
According to HDFC Bank, many people think that if they have more than one house and they are not earning rent, then you will not have to pay tax. This is wrong. You will not only pay tax on the house in which you live. The rest of the vacant houses or from which the fare is not received, they also have to pay tax.
Wrong postal and email address filling
All necessary notifications from the Income Tax Department are sent through email or post. Therefore, it is very important to fill your correct and updated email and postal address. Even small mistake can cause not to get important information.
Do not tell tax free income
Some income, such as long-term capital gains, dividend etc. are free from tax, but it is necessary to report. Because brokerage house or investment company gives information about these income to the Income Tax Department. So it would be wrong to hide them.
Do not check after filling the form
Whether you are filling online or offline forms, mistakes may occur. So after filling the form, check it carefully. If a CA or tax consultant is filling on your behalf, then check the complete information of the form itself so that there is no mistake.
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