10 Common mistakes made while filing Income Tax Return

common mistakes while filing ITRWhile filing Income Tax Return , assessees are required to be very careful and alert as they are always in a hurry while filing their returns. Mistake can be committed by any assessee in filing income tax return but the mistakes needs to be rectified and be more vigilant while filing ITR. Tax Mantra with its experience, has noticed many of the common mistakes made by the taxpayers while filing income tax return . So, here are some of the common mistakes –

  1. Failure to file income tax return on time – The most common mistake by an assessee is delay in filing income tax return . The due date passes by and thus leads to interest and penalty on assesses. While filing income tax return the assessee should be very particular regarding the due dates.
  2. Providing Wrong Information – The basic information required in the form are usually not provided correctly by the assessee. Whatever information is provided by the assessee is being circulated to the department. Any wrong personal information may delay in processing of your return.
  3. Making mathematical errors – A common mistake is making mathematical errors while filing return. The best way to avoid this is double- checking the figures. Using a standard calculator will reduce the errors to an extent.
  4. Choosing wrong status – Filing income tax return under wrong status can create a big impact on the type of deductions you would receive on tax return. Choosing the correct status is crucial in order to claim standard deductions.
  5. Missing deductions & Tax credits – Missing the deductions can increase your tax liability. One should be aware of the deductions to be claimed in order to reduce their tax burden and reduce the chances of sudden demand or notice from the IT Department.
  6. Failure to sign the form – Signing is a vital requirement to be undertaken by an assessee. Generally assessees are in a hurry to file income tax return and they forget to sign & submit the ITR in case of manual filing and ITR V in case of online filing income tax return without DSC. This may lead to rejection of the ITR Filed.
  7. Sending returns to wrong office – For those who file their returns on paper form, writing the wrong address on the return envelope can lead to delay in processing and refunds may be sent to wrong address. This can be verified by using the address label being provided by the IRS.
  8. Choosing the wrong forms – Various ITR Forms are notified by the IT department for filing income tax return. Selecting a correct form is very essential.
  9. No tax liability, no filing – Even if you don’t have tax liability, filing income tax return is encouraged. If you’re owed a refund, you’ll cause yourself problems in the future by not filing (and you can lose your refund in the process).
  10. Failure to keep a copy of return – A copy of Income tax return and Acknowledgement should be maintained by the assessee which would be helpful in ensuring rectification of mistakes and will be helpful during audit process being conducted by the department in the near future.

So, now we believe after reading our list you won’t commit any mistakes while filing Income tax return.

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