Filing Income Tax Returns can be tricky. The calculations are difficult, the terms are confusing and the documentation is seemingly endless. Yet, even though it can be tiresome, we have to file our income tax returns. The deadline to file returns for AY 2017-18 is 31st July 2017. The sooner you finish this task, the better it will be for you. To make it easier for you, here are some common income tax return filing mistakes that you should try avoiding.
Calculating Interest Income Correctly
Taxpayers earn interest income from sources like savings bank account or fixed deposits. This interest income can be calculated by going through your bank pass book. Make sure you enter the correct interest income in your tax returns to avoid getting an income tax notice.
Match FD interest with Form 26AS
The interest earned from fixed deposits is paid after deduction of TDS. There is often a mismatch regarding this in the Form 26AS. This mismatch can lead to a problem in your tax return, which is why you should look at your Form 26AS and correct any TDS-related mistakes.
Enter correct bank account information
Taxpayers often don’t know or don’t remember which bank account is associated with their income tax returns. This is a problem because people have many bank accounts and the right one has to be given while filing returns.
Using the correct email address
Taxpayers often sign up with their work ID but then require the ID to be changed to their personal email. This is why it is best to use your personal email ID when you sign up on the Income Tax Department’s website.
Figuring out the correct amount of deductions
If taxpayers have multiple Form 16s then they have difficulties in figuring out how much tax saving deductions to enter in their tax returns. You should make sure that the deductions are not repeated twice. Calculate the deductions from the investment proofs and other documents you have to be doubly sure.
Quote personal information in the right formats
Taxpayers need to quote their personal info like PAN, DOB, etc correctly in the right format as prescribed by the department. If the right formats are not followed, your income tax returns might not get processed.
Computing capital gains correctly
Another problem that taxpayers face is computing their income from short-term and long-term capital gains and filling it out in the tax returns. Capital gains from different types of assets are taxed differently and the right tax rate has to be applied to them. Seek the help of a CA if required to avoid making mistakes here.
These are some common mistakes that taxpayers make while filing income tax returns. You can avoid these mistakes and income tax notices that can come to you because of them by understanding the aspects properly while e-filing income tax returns.