After extending due date of filing of return , you don’t need to hustle while filing return but there might be chances you can make some common mistakes, which may lead to take the action by income tax department and you have to revise and file your return again.
Every year, many individuals receive notices from the income tax department due to silly mistakes or serious ones that could even land you in jail along with penalty proceedings.
In order to avoid such actions, here are some common mistakes you should avoid while filing income tax returns:
- Use updated ITR form utilities: You must have noticed the changes in forms as compared to previous year. Some forms are simplified where some required detailed information like of Capital Gains.
Always keep track of the updated utilities, government has already introduced and updated almost all ITR forms many times in this financial year. Most of the changes have been made in ITR -1 and ITR-2.
From Financial year 2018-19, ITR 1 form cannot be used by resident individuals who are directors in a company or have investments in unlisted equity shares of a company, even if the income is below Rs 50 lakh.
Similarly, while filing ITR 2 form, a taxpayer is required to not only disclose the name of the company but also the PAN of the company and the director’s identification number.
Furthermore, individuals also need to disclose investments in unlisted equity shares including the name of the company, the opening number of shares, details related to the shares acquired or sold during the year and closing number of shares and cost.
The changes in the forms will help the government to detect an evasion of tax through systemic matching and auto processing of return.
- Be careful with personal details: Once you have filled your personal details, make sure to check that the details are correct especially communication details, as other details can be captured by department from your PAN but the email address and postal address is to be checked properly.
Income tax department make most of the communication through online via email. In case of incorrect details, you could miss out the important information including any notice, order related to your income tax return.
- Don’t miss deadline of filing the return: Many taxpayers wait until the last date of filing of return. They take lot of time in collecting documents and when the last day comes, all try to file return and sometimes, Income tax website starts creating problem.
Missing the returns filing deadline can attract a heavy penalty.
Also Read: Penalty provisions for delay filing of ITR
- Never report inflated returns: Some individuals inflates their returns to avail more tax benefits, doing such practices could land you to jail also.
It is punishable under the I-T Act for individuals not to file inflated returns.
- Don’t forget to verify your return: In many cases, individuals end up receiving a notice as they file their ITR in wrong forms. It is necessary to pick the accurate form for filing income tax returns.
Also, once you have filed your return of income, there is need to verify the return for claiming refund also by using EVC or other available modes.