As the deadline for filing Income Tax Returns approaches, a large number of salaried tax paying individual panic and try to quickly get over with it. And that leads to problems with their returns and they are served a tax notice. There are various reasons due to which a salaried individual may find it problematic to get it right.
Using the Wrong Form for Filing ITR
As the law states, all the individuals are required to provide details about all the sources of their income. Now there are different forms used for different purposes and if an individual uses the wrong form to file ITR then his form will be considered ‘wrong or defective’ and he will need to file the correct form again.
In case an individual files ITR using the wrong form, he will be given a period of 15 days to rectify his mistake and fill out the correct form. The individual can request for a prolonged period if the assessment officer sees the need for an extension. If the individual still fails to submit the correct form with all the required details and document then he will be treated like anyone who hasn’t filed for ITR and will face penalties for the same.
Failing To Report Income from Different Sources
A number of salaried individuals are confused about the taxable income, sources of income and tax relief associated with different sources of income. Apart from reviewing all the bank statements and salary slips, an individual is required to show income from
- Income from Salary
- Income from House or Property
- Income from Businesses or Profession
- Income from Capital Gains
- Income from Other Sources
There is a simple way to ensure that you don’t miss to state income from any source -just download form 26AS which reflects income received by you and tax associated with it.
Lack of Knowledge about Deductions and Exemptions
If you have ever visited the official website of Income Tax India’s official website, you will see those tax laws keep on changing every year and it is very important to be up to date with the changes made in law in the previous years.
Every year there are changes in tax laws around tax reliefs. But due to lack of information on the topic people often don’t pay attention to it.
Forgetting To Report Income from the Last Job
It is well known that Income Tax Return is filed for a financial year, so if any salaried individual has changed job in the middle of financial year then it is important he mentions income from both the jobs with all the correct documents.
A special Form 16s is required to be filed if an individual has changed their job in between a financial year. This makes the matter a bit tricky and prone to mistake from any inexperienced taxpayer.
Getting Required Tax Proofs To Employer
To get certain tax relief, a salaried employee is needed to submit certain tax-related to the employer. The employer then files for deductions and exemptions through Form 16 and the employee can then claim deductions while filing their ITR.
