There are many people who have not yet filed their income tax return, which must be done by July 31. As soon as you have access to your Form 16, begin the process to avoid making mistakes at the last minute. Income tax preparation requires precision and concentration. To prevent late filing fees, taxes must be filed before the deadline. You run the risk of making multiple tax filing errors if you file your income tax returns in a rush or at the last minute. If you choose to file your returns electronically online, you may think the procedure is easy. But mistakes could happen along the way.
1. Not Filing Income Tax Return on Time:
An additional error on a tax return is a late filing. It’s important to file your taxes on time and not wait until the last minute. Keep all of your supporting documentation handy, such as pay stubs, dividend receipts, bank statements, etc. Tax return filing delay carries a penalty. It prevents you from receiving the majority of the specific benefits, such as losses from capital gains from your investment or business, because they cannot be offset in the following fiscal year in the event of a late filing.
2. Avoid the last-minute filing
It is never a good idea to put off filing returns until the very last minute. Due to a lack of necessary documents or information, you risk missing the deadline. The income tax Website may experience issues as a result of a high volume of visitors closer to the deadline.
If you don’t submit your Income Tax Return before the deadline, you’ll also be penalized.
- A maximum 5,000 late fee
- A monthly interest penalty of 1% on any unpaid taxes
- A delay in getting refunds for extra taxes paid
3. Failure to Report All Sorts of Income
Disclosure of all sources of income is essential when submitting income tax returns. Even if you work for a salary, you might still have supplementary income from things like capital gains, dividends from equity shares, rent from homes or businesses, interest from savings or fixed-deposit accounts, and more.
Even if the income is exempt from taxation, it is still necessary to disclose all of these sources of income and provide their specifics when completing an ITR.
4. Wrong selection of the Income Tax Return form
Assessors make the mistake of filing the incorrect Income Tax Return (ITR) form by failing to identify the appropriate one for their situation.
5. Revenue from the former job was not disclosed.
If you changed jobs during FY23, you must be exceedingly cautious while filing your returns. These people will have several Forms 16 that have been issued by both their present and prior employers.
You must disclose the revenue received from both organizations. Data from both Forms 16 will be represented because the AIS records every aspect of your income. To prevent tax notices due to failing to declare all income, it is best to be entirely open and honest.
6. Not claiming TDS
Assessors frequently have no idea that TDS is being taken out of their paychecks. The most typical of these is tax withheld on interest that is accumulated in bank savings accounts or interest on fixed deposits. Therefore, always verify that no TDS has been deducted from your income. You may quickly accomplish this by looking at your 26AS.
7. Incorrect assessment year cited
When filing taxes, it is critical to make sure that the correct assessment year is included. The correct AY is 2023–24 for the fiscal year 2022–2023. Double taxation is more likely to occur and incur unnecessary fines when the incorrect AY is mentioned.