Missing the deadline: You should emphasize the importance of meeting income tax deadlines. Needless to say, failing to report your income through an ITR in due time may lead to a penalty. This penalty can go up to ₹ 10,000.
Incorrect personal information: The name, address, email address, phone number, and PAN must all be provided accurately. Make sure that the details match your PAN as well. If you are applying for a refund, ensure the bank details like account number and IFSC code are accurate.
Quoting wrong assessment year: This mistake is often committed by first-time taxpayers. While filing returns, it is important to mention the assessment year accurately. For FY2019-20, the corresponding accounting year (AY) will be 2020-21. There are higher chances of double taxation if the wrong AY is mentioned.
Not disclosing all sources of income: Tax officials can get income information from various sources like banks, companies, mutual fund exchanges, etc. Failure to show this in ITR may result in Tax Notice under section 139 (9) or 143 (1) to conceal income.
Form 26AS mismatch: Form 26AS includes all kinds of income details, TDS, and advance tax. All salaried individuals need to cross-verify Form 16 data issued by the employer with the Form 26AS. Mismatches between Form 26AS and Form 16 or TDS certificates may result in lower refunds or higher taxes.
Selecting incorrect form: Failure to file the return in the correct form is also considered invalid and you can get a notice from the IT department under section 139 (9) for filing the wrong return. If you file an incorrect ITR, you need to file a return in the revised ITR.
Larger Transactions: Sometimes you may also get a notice on your bigger transactions. If a large transaction is done in a financial year, but the return is not filled then it can come to the notice of the department. The department may ask you for details of funds.
Tax arrears: If a refund is claimed on the tax paid, but the last few taxes are due, the Assessing Officer may send a notice. Such notices are sent under section 245. Make sure you have paid all the outstanding taxes on time.
Incorrect reporting of LTCG from equity: When filing ITRs, long-term capital gains (LTCG) from listed securities and funds should be stated. The LTCG above Rs 1 lakh is taxable by 10%. Calculations, therefore, need to be accurate. Errors in the calculation may lead to demand notice.
