ITR Filing: Warning! 5 most common mistakes one should avoid during filing Income Tax Return
ITR Filing 2019: August 31 is the last day for filing Income Tax Return (ITR) for the assessment year 2019-20 (the financial year 2018-19). If you are a taxpayer you should ensure to file your income tax return before the last day of filing. CBDT has extended the last day of filing ITR to August 31 for the financial year 2018-19. One can file ITR online through income tax's e-filing ITR website. However, it is common for individuals to makes mistakes while filing ITR online.
With the last date being August 31, extended from July 31, it has made a lot of taxpayers easy to file ITR.
However, here are 7 common mistakes individuals make while filing an ITR, either online or offline:
1: Select ITR forms wisely
Taxpayers need to select the correct ITR form. Each ITR form differs based on the nature of income that needs to be disclosed by assesses. Pre-filled ITR-1, ITR-2, ITR-3 and ITR-4 forms that are available for taxpayers.
2: Not disclosing all sources of Income:
One should avoid hiding sources of income-- salaried individuals as one need to disclose all sources of income apart from your salary while filing your return.
3: Not filing basic details right:
It is important for taxpayers to mention basic details such as PAN, Personal Information, e-mail ID, bank account number and IFSC code correctly.
4: Not filing ITR before deadline:
Taxpayers need to file ITR on or before time to avoid any consequences and get certain benefits.
5: Verify your ITR:
After filing your income tax return, the next step is to verify it. The Income Tax Department starts processing your return only after it is verified. Refunds are processed only after the verification process is complete.What happens if you miss filing I-T return?
A hefty amount of fine is levied on individuals who miss filing ITR by the due date.
Until December 31 -- fine is Rs 5,000
Until January 1/March 31, 2020, fine is Rs 10,000
For those whose income is below Rs 5 lakh, the late fee is Rs 1,000
Important: If you fail to file an income tax return, and tax due is more than Rs 25 lakh, you can even face a seven-year jail term.
ALSO READ: ITR Filing 2019: CBDT extends Income tax return filing deadline till August 31
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