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ITR form selection to bank validation: 5 mistakes that a taxpayer should avoid

ITR Filing: The deadline to file an income tax return (ITR) for Fiscal Year (FY) 2021-22 and Assessment Year (AY) 2022-23 is July 31, 2022. Therefore, a person who wins will be busy evaluating his or her financial statements and documents. However, when filing an income tax return, it is discovered that a person who earns can make a common mistake that results in the denial of the ITR, an income tax notification or a delay in the refund of the ITR.

Speaking about the complexities that a taxpayer needs to understand, Sujit Bangar, founder of taxbuddy.com, said: "Filing an income tax return has the complexity of being out of our hands. We can consider filing the ITR correctly until we receive a faulty tax notice. income tax return due most of the time. These errors are due to misinterpretation of tax provisions or ignorance."

Here we list 5 common mistakes taxpayers make when filing an ITR:

ITR Filing: The deadline to file an income tax return (ITR) for financial year (FY) 2021-22 and Assessment Year (AY) 2022-23 is July 31, 2022. So, an earning individual would be busy assessing his or her financial statements and documents. However, when filing an income tax return, it is discovered that a person who earns can make a common mistake that results in the denial of the ITR, an income tax notification or a delay in the refund of the ITR.

Speaking about the complexities that a taxpayer needs to understand, Sujit Bangar, founder of taxbuddy.com, said: "Filing an income tax return has the complexity of being out of our hands. We can consider filing the ITR correctly until we receive a faulty tax notice. income tax return due most of the time. These errors are due to misinterpretation of tax provisions or ignorance.

ITR

Here we list out 5 common mistakes that a taxpayer commit during ITR filing:

1] Not taking credit for tax deduction: Many times we get less refund than expected refund. Sometimes we receive order notifications instead of refunds due. The common reason for this is not receiving the credit due for the discounted TDS.

"The most common mistake users make is that they don't take credit for withholding tax in the proper income header. For example, if I have receipts from professionals along with salary and when I apply, I collect professional income as income from salary, I'll get notice from tax department," said Sujit Bangar of taxbuddy.com.

2] Speculative Income vs. regular business income: Major mistakes users make are related to offsetting losses from speculative transactions, such as day trading. Sometimes we experience a loss due to speculative income and profit from regular stock trading or stock trading.

"The loss of speculative transactions cannot be offset by trading income like F&O or regular stock trading," said Sujit Bangar.

3] Bank Validation: The third most common reason for delays in ITR refunds is problems with bank account verification. Make sure PAN and AADHAR are linked. Help with bank verification for faster refund and electronic verification for fast processing.

4] Incorrect ITR Model Selection: The fourth common mistake is choosing an ITR model. If one has more than one home ownership, no one can file an ITR-1, for example. Therefore, the correct ITR form must be verified and saved.

Aarti Raote, Partner at Deloitte India, said: “The ITR-1 is a simple tax return that can be filed by a resident taxpayer with a total income of no more than 50,000 Egyptian Pounds and with income reported from sources such as wages and salaries. . from other sources. Just a house. It is necessary to note that the yield cannot be used by a director of the company or has a tax deferral for ESOP for startups or an individual with agricultural income of more than INR 5,000 or has income from capital gains.”

5] Taxes cannot be saved beyond form 16: Salaried individuals have a major misconception that taxes cannot be saved beyond form 16. They file ITR based on tax calculation of form 16 without giving fresh look at tax deductions.

Sujit Bangar of Taxbuddy.com said: "We need to avoid this mistake. Many things we do in the usual course of life and these things have a tax saving effect. For example, tuition fees for children or the RTPCR test (80D deduction of Rs 5000),"

Also Read: Crypto lender Voyager files for bankruptcy

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