8 Common mistakes to avoid while filling income tax return for 2014

Income tax return filling has become simpler and more convenient than the earlier process of filling it used to be a few years back. With the e-filling concept, more and more tax payers are finding it easy in filling their return instead of visiting IT office.

Even with this simplified procedure, a lot of tax payer do mistakes while filling their IT return. If you have handed over the process of filling to someone else then do not think that the person will not commit mistakes.

Whatever way you choose, we suggest you to have these common mistakes of IT return filling in mind so that you will have an easy filling at the year end.

Common mistakes in filling income tax return

Mistake 1: Not checking TDS details before filling income tax return

If you are an employee then before 31st may your employer will issue you form 16 for the TDS that has been deducted from your salary. Form 16 will be a consolidated TDS certificate stating the whole tax amount that has been deducted for the whole year.

Similarly for other incomes like interest from bank deposit you will receive form 16A stating the TDS amount that has been deducted from that income. If you are a self employed person then for TDS deduction you will receive form 16A.

Before starting the process of filling income tax return you need to have all these certificate in hand and start comparing it with form 26AS. 26AS will given a consolidated figure for TDS deducted from your income, tax paid by you, refund issued to you if any and much more.

What you need to do is to compare your TDS certificate with form 26AS figure and reconcile it with tax paid, deducted during the year. If for any amount you have not received TDS certificate then make sure that you get it before filling your IT return.

Many times we have seen tax payers are making mistakes by not comparing 26AS with TDS certificates issued to them. By which, they end up paying more compare to their tax liability or forget to claim refund for which they were eligible.

Form 26AS will be used by IT department for issuing notices and refunds. Therefore, if you find any mismatch in the details of both the form then take up this matter immediately and get the mistake rectified before filling your IT return.

Also Read: How to check tax credit statement or form 26AS online

Mistake 2: Choosing wrong IT return forms

The IT return form to be used for filling your tax return is crucial. Choice of income tax return form depends on the type of income that you earned during the financial year. If by mistake, you choose a wrong IT form for your filling then the return may get rejected by IT department.

Also Read: Which income tax return form you need to use for filling your IT return

Mistake 3: Miss calculating tax liability

Tax payers make many mistakes while calculating their income tax liability. As IT department has all of your information we suggest you to take following calculation mistakes into consideration while calculating your income tax liability;

  • Bank interest and other incomes
  • Ignoring previous employer’s salary while calculating tax liability
  • Not taking deductions and rebate into consideration
  • Not disclosing on house property income

You need to consider all of your income and calculate income tax liability before filling your return. If you are thinking that the TDS amount that is deducted by your employer or other payers are final tax liability then you are making a mistake.

At the end of the year, you are required to calculate tax liability on your own and pay balance net liability if any to IT department. Similarly, if you are required to get refund then you can claim that from IT department.

Mistake 4: Not choosing the right mode of filling

E-filling of IT return is mandatory of those individual whose income is over Rs.500000 per year. If you satisfy this then choose the right form and upload income tax return by using online e-portal of IT department.

Instead you can also file your income tax return through a private portal by paying them a fee. Before choosing a private portal for tax filling we suggest you to inquire about it as these portals will have all your personal details which can be misused later. As IT department provides free easy to use tool to file your IT return, we suggest you to use that instead of private portals.

Mistake 5: Ignoring ITRV instructions

You are required to take print out of ITRV after uploading your income tax return. Followings are certain mistakes that many tax payer does while taking print out and handling ITRV;

  • Print should be in black inks
  • ITRV with signature should be sent in original. Many tax payers are sending a photocopy of the signed ITRV.
  • Do not attach any documents with ITRV
  • If you have filled two returns then do not print ITRV back to back. You are required to send 2 ITRV copies to IT department.

Mistake 6: Not sending ITRV to CPC, Bangalore

Many tax payers think that uploading IT return is the last step of filling income tax return. Due to this mistake, their IT return gets rejected by IT department even though it has been filled correctly with all details.

ITRV is an acknowledgement that gets generated after e-filling your income tax return. Many tax payers are filling their income tax return without digital signature. If you are one of them then it’s required to send signed ITRV form to IT department’s CPC Bangalore office within 120 days of filling your income tax return.

If you make a mistake of not sending ITRV in time then look for your status online in income tax portal. If it’s not yet rejected then try sending ITRV again to CPC, Bangalore office.

Please remember you have to send ITRV to below address in ordinary or speed post only. If you send by courier or through some other mode then that will not be accepted. Even submitting ITRV nearest to your IT office is not acceptable.

Address to Send ITRV;

Income tax Department – CPC, Post Box No: 1; Electronic City Post Office, Bangalore, Karnataka – 560100

Mistake 7: Waiting till the last date of filling income tax return

The most common mistake many tax payer do for filling their income tax return is to wait till the last date of filling. Individuals who are not eligible for tax audit are required to file their income tax return before 31st July of the next financial year following the current financial year for which return is filled.

For example; if you are filling income tax return for the financial year 2013-2014 then for individuals who are not required to undergo tax audit are required to file their income tax return before 31st July of 2014 (i.e. financial year 2014-2015).

We suggest you not to wait for the last date to file your income tax return. To avoid last minute rush it’s always better to file your IT return as early as possible.

Mistake 8: Providing incorrect details

Details like email ID, mobile number, bank account, postal address are very vital while filling income tax return. If you are like others and making mistake by not giving these details then please avoid such thing this time onwards and correct your details with income tax site by changing your profile. Here are some facts why these details are important to you;

  • Postal address is used for sending refund cheque and other communication related to income tax return. It gets printed in your ITRV so providing a copy at the time of loan processing may create problem.
  • Department will send ITRV received not received messages, rectification request and notices to your Email ID. Email ID is also required to break your income tax log-in password.
  • Like email ID you also get all information to mobile number and it’s also required to break your password.
  • Bank refund comes directly to your bank account. Providing incorrect details will delay the process. While breaking income tax password you are also required to provide your bank account number.

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