6 mistakes to avoid while filing income tax return for FY 2019-20

With the concept of e-filling, more and more tax payers are finding it easy in filing their income tax return instead of visiting local IT office.

Even with this simplified process, a lot of tax payer do mistakes while filling their annual tax return.

In this article, we have listed most common mistakes taxpayers make while filing income tax return.

Mistake 1: Not checking form 26AS before filling income tax return

Form 26AS is a statement containing details of all the taxes credited to your account by various deductors.

IT department has provided the facility to view form 26AS online. By selecting the form for a particular financial year, you can see all the taxes credited to you PAN.

Before filing ITR, its your duty to cross check Form 26AS online with the actual amount to be credited as per your list.

Your deductor will issue form 16 and 16A to you for the tax deducted.

Form 16 is a consolidated TDS certificate issued by employer to employees stating the whole tax amount that has been deducted for a financial year.

Similarly, for other incomes like interest from bank deposit, you will receive form 16A showing the tax amount that has been deducted from your interest income. If you are a self employed person, then for tax deductions, you will receive form 16A every quarter from the deductor.

Before starting the process of e-filling, you need to have all these certificates in hand. To confirm the genuineness of these certificate, you need to start comparing these with form 26AS online. You need to reconcile it with tax paid, deducted during the year.

In case of any unexpected credit to form 26AS, we suggest you to take up this matter with the deductor for rectification. Never take unexpected credit to your tax return as it may get reversed by the deductor and you end up receiving a demand notice.

Many times we have seen taxpayers are making mistakes by not comparing 26AS with the actual tax deducted. Due to this reason, they end up paying more compare to their tax liability or forget to claim refund.

Form 26AS will be used by IT department for issuing notices and refunds. Therefore, if you find any mismatch, then take up this matter immediately and get the mistake rectified before filling your IT return.

Mistake 2: Choosing wrong ITR forms

Government has notified ITR forms to file income tax return. You need to choose the right ITR forms based on your type of income during the financial year.

If you make mistake in choosing the right tax return form, then your ITR will be treated as defective. If defects pointed out in ITR not rectified, then it gets rejected.

To know more about ITR forms we suggest you to read our article How to choose the right ITR form for tax filing.

Mistake 3: Miscalculating tax liability

Tax payers make many mistakes while calculating their income tax liability. As IT department has all of your information, we suggest you to take following calculation mistakes into consideration while calculating your income tax liability;

  • Bank interest and other incomes
  • Ignoring previous employer’s salary while calculating tax liability
  • Not taking deductions and rebate into consideration
  • Not disclosing on house property income

At the end of the year, you are required to consider all of your income to calculate tax liability on your own and pay balance net liability if any to IT department. Similarly, if you are required to get refund then you can claim it by filing tax return with the IT department.

Mistake 4: Avoiding E-verification or Not sending ITRV

Generally, taxpayers think that uploading tax return is the last step of filling.

Due to this mistake, their tax return gets rejected by IT department even though it has been filled correctly with all details.

After filing, acknowledgement copy gets generated. If you have filed your IT return without using digital signature certificate or e-verification process, then it’s required to send signed ITR-V form to IT department’s CPC Bangalore office within 120 days of filing.

If you missed it, then look for your status online in income tax portal. If your IT return is not yet rejected then try sending ITR-V again to CPC, Bangalore office.

Please remember, you have to send ITR-V to below address in ordinary post. If you send by courier or through some other mode, then that will not be accepted. Even submitting ITR-V nearest to your IT office is not acceptable.

Address to Send ITRV; Income tax Department – CPC, Post Box No: 1; Electronic City Post Office, Bangalore, Karnataka – 560100

Instead of sending sending ITR-V, we suggest to use e-verification process for speedy processing of IT return.

You can e-verify your tax return by using Aadhar OTP or net-banking account or demart account or by validating bank account details.

What ever way you choose, we suggest you not to forget to do verification as it will not process your return further.

In case you forget to do verification, IT department will send you reminder messages to your registered email ID and mobile number. You need to make sure that your registered email ID and mobile number has been mentioned in tax return.

Mistake 5: Waiting till the last date of filling income tax return

The most common mistake many taxpayer do for filling their income tax return is to wait till the last date of filling.

For individuals who are not eligible for tax audit are required to file their income tax return one or before 31st July of the relevant assessment year following the current financial year.

We suggest you not to wait for the last date to file your IT return. To avoid last minute rush it’s always better to file your IT return as early as possible.

Mistake 6: Providing incorrect details

Details like email ID, mobile number, bank account, postal address are very vital while filling income tax return.

If you are like others and making mistake by not giving these details, then please avoid such thing this time on-wards and correct your details with the department by changing your profile.

Here are some facts why these details are important to you;

Postal address

Postal address is used for sending refund cheque (in case not transferred to bank account) and other communication related to income tax return.

Postal address gets printed in your acknowledgement copy, so providing a copy at the time of loan processing may create problem.

Email ID and Mobile Number

Department will send ITR-V received status messages, rectification request and notices to your Email ID. Email ID is also required to break your log-in password.

Like email ID you also get information to your mobile number. Mobile number is also required to break your login password.

Bank Account details

Refund comes directly to your bank account. Providing incorrect details will delay the process. While breaking password, you are also required to provide your bank account details.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.