The ITR filing deadline for FY 2021-2022 is July 31. Here are some common errors that you should avoid while filing your Income-tax return online.
- Not cross checking Form 26AS statement:
You should double-check Form 26AS before filing ITR. The form contains information about your income, tax deducted at source (TDS), advance tax paid, self-assessment tax paid and more. All salaried individuals must cross-check their information with the employer’s Form 16 and Form 26AS.
- Not filing the return:
Failing to file the ITR altogether may land taxpayers in several legal troubles. The Income Tax Department (I-T Dept) may impose a penalty on the tax due from the due date to the filing date. A jail term of 3-7 years could also be awarded to the taxpayer.
- Providing incorrect information:
While filing the ITR is necessary, providing correct personal information in the forms is even more critical. The details that need special attention are PAN details, e-mail ID, date of birth and IFSC code.
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- Non-reporting of assets or liabilities, foreign assets, directorship, or unlisted share holding:
Taxpayers should report – (i) assets and liabilities (income exceeding INR 5 million), (ii) overseas assets (for ordinarily resident taxpayers) or (iii) directorship details or (iv) unlisted shareholding where applicable. Non-furnishing of overseas assets may invite query from authorities under both the Income-Tax Act and the Black Money Act.
- Particulars of TDS and TCS:
Taxpayers should be careful in claiming the correct Taxes Deducted at Source (TDS) or Taxes Collected at Source (TCS) while filing the ITR as incorrect particulars may lead to mismatch of tax credit and may result in levy of demand of taxes. Further, wherever TDS has to be carried forward into the future years, suitable references should be provided in the tax return.
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