Income Tax Return (ITR) can be a tedious task but it has many benefits. But you have to be very careful while filing ITR as making mistakes can lead to many complications. The last date for filing tax returns for the financial year 2020-21 (Assessment Year 2021-22) is September 30, 2021.
Therefore, it is advisable to file ITR early so that the last minute rush doesn’t make you commit some mistakes which can further affect the income tax filing.
Taxpayers should avoid these mistakes while filing ITR:
wrong assessment year
It is important to note that while filing the return, it becomes absolutely imperative to mention the correct assessment year. The correct correspondence for FY 2020-21 is AY 2021-22. Any wrong year raises the possibility of double taxation and penalties.
Wrong ITR Form
Different forms are given for different types of taxpayers and asked to select the ITR form. Selecting the wrong firm may prove to be more difficult as it will turn out to be defective and one may get a notice to file the return once again.
Form 26AS contains summary of TDS and tax paid on income such as salary, interest or sale of immovable property. Hence, one should always cross-check TDS and tax payment with Form 26AS.
A taxpayer is expected to ideally report all his/her bank accounts in India except dormant accounts and the taxpayer can choose the bank account in which they wish to deposit their refund.
ITR forms come with a number of rows and columns that require ample attention as the correct details have to be filled in a certain format.