Filing an Income Tax Return can be a tedious task, there are chances that you make some mistakes, while filing ITR. Here are a couple that taxpayers make, and we will tell you how you can avoid them.
- Selecting wrong ITR Form
Well, this is one of the most common mistakes that people make. There are several Income Tax Return Forms that are available to the taxpayers. Which ITR Form you choose depends on the amount of income, the source of income, ownership of assets and so on. If you file Income Tax Return using a wrong ITR Form, then, in that case, your ITR will be considered defective and you will have to file a revised return.
- Misreporting of Interest income
There are times when a taxpayer forgets to report his/her interest income or misreports it, which they are earning from fixed deposits or some investment. While filing your income tax return, you must mention this income, under the head ‘Income from Other Sources’.
- Not filing ITR at all
The taxpayers who have income below the taxable level, avoid to file Income Tax Return. Well, that’s what you should never do. This is not a mistake, but negligence. Everyone who has an income irrespective of the slab they fall in, must file Income Tax Return.
- If you don’t report all the Bank accounts
It’s common for taxpayers to have multiple bank accounts. From the assessment year 2015-16, a taxpayer is required to report all the details of his/her various bank accounts held by him in previous year. However, you can leave your dormant accounts.
- Do not fail to report income from the previous job
There are times when taxpayers are in situations where they have to report income from his/her previous and current job. If you have switched your job then in that case you will have to take form 16 from your previous employer as well as the current employer, in order to file your Income Tax Return.