What do you mean by income tax?
Income tax is a tax levied and collected by the Central Government on income of a person which is calculated at specified rates on the total income of a person and paid directly to the Central Government.
And,
An income tax return is a form or document where the citizens declare their taxable income, deductions as per norms, and tax payments. The undergoing whole process is termed as ITR Filing.
What are the basic and most common mistakes people make while filing ITR?
- Mistakes in filling basic details – People generally make mistakes while writing their name, PAN card details, their associated bank account numbers, respective address or their basic details which results in rejection of their returns or delays.
- Filing using incorrect forms – Almost every time there are made some changes to the respective forms. So, people file ITR using wrong forms which are then resulted as defective.
- Not filing/Forgot to file ITR returns – People generally forgets or are in doubt to file their returns. But, do remember if your total gross income is up to Rs. 2.5 lakhs, then you have to file an ITR return.
- Forgets to report all interest incomes – People must report/write all the interest incomes he/she is received for the year which can include all the saving bank account, his/her fixed deposits and other recurring deposits, etc.
- Fails to combine the incomes – People generally fail to combine incomes of his family including his own, his wife, his children and combining that income to his income which then gets the total taxable income.
- Failing to report income from his previous job – Job change is quite frequent these days. And people also quite often fails to report the income earned through previous job along with his present job, then occurs a discrepancy on TDS.
- Not reporting incomes even it is tax free – It is your duty to report every income you have even if it is earned through your provident funds or your tax free bonds in a single year.
- Failing to report all bank accounts – Every year, it is required for the person to report every single bank account to be reported in the forms. Failing to which, these should be charged as defective.
- Not declaring any type of rent – If you have any other property/house apart from the one in which you are living, then you should report the expected rent in your total income area of the form.
For further information and help related to filing ITR feel free to get in touch with Trutax.in
For any inquiry call us +91 98 91 200793 or email us care@trutax.in
