Income Tax Return Mistakes In Income Tax Return Filing Can Be Avoid If You Understand 7 Rules

Income Tax Return Mistakes In Income Tax Return Filing Can Be Avoid If You Understand 7 Rules

You need to done income tax return filing with all proper and correct documents because even a small is take will lead you to pay high penalties and notice may be served to you. In this article we will discuss the mistakes can be done by you. 1. Selection Of Wrong Itr Form According to the taxation rules, every assesse required to show full earning in the specified form, as the department has notified different form for Income tax filing. If anyone file using wrong form then the return uploaded will be treated as defective return and assesse will be asked to file a revised ITR using the correct form. In this case, department will provide 15 days’ time to file revise return. Assesse need to file that and initiate to the department. On the other hand the department may charge all those penalties which to be file as in case return is not filled in addition to payment of interest under section 234A for total delay in filing the income tax 2. Avoiding Interest Income From Bank Assesse should understand that all interest received in saving bank account or FD are taxable under the head of other sources. Taxpayer generally forgot to declare interest earned at the time of Efiling income tax Further it is to understand that the interest received on account of fixed deposit is fully chargeable of income tax, but in case of interest received up to 10000/- in the saving bank account is exempted from income tax under section 80TTA Act. 3. Forgot To File Return Some assesse don’t file their tax returns because they have long-term capital gains (LTCG) which are tax-exempt and without this their gross total income is below the tax-exempt income level. However, as per recent amendments in section 139 (1) of the Act, if your exempted LTCG along with gross total income exceeds the minimum exemption level, you are required to file your return. 4. Not Clubbing Incomes Clubbing of incomes are very important, in these rules assesse some time need to ass income of some specified person (minor children, spouse, son’s spouse, etc.) while calculating gross income, clubbing always increase tax liability of the assesse. Example: in case of minor child, if any income is earned by any children then such earning to be add in the income of the parent having high income slab rate. For more understanding we can 5. No Declaration of Tax Free Income As a taxpayer it is compulsory to report every earning to department, which means you need to report even if your income is tax free. You need to open in the form; however you not need to pay tax as you can claim exemption under the tax act 6. Hiding of Bank Account From the assessment year 2015-16, assesse required to report every bank account maintain by him. Sometime assesse hide bank account because of high transection or they think only one bank account is required to provid.is Earlier you were only required to mention a single bank account in which you wished to receive credit of the income tax refund if any. However, now only dormant accounts are excluded from requirement of reporting in the ITR. 7. Not Declaring Deemed Rent/Expected Rent If any assesse have more than one house as self-occupied then he need to open deemed rent income from the house even if the house is vacant. This is a kind of tax on notional income under the house property head of income tax