It is the time of the year, when individuals are busy gathering details or planning to file their tax returns. Remember, the last date to file your income tax returns is July 31, 2016. Here are a few mistakes that you should avoid when filing tax returns:
Forgetting to include tax free income
Remember, you have to include income that is also tax free. For example, many individuals fail to include interest earned on savings bank account.
Though it is fully tax exempt up to an amount of Rs 10,000, you should show it in the total income and deduct accordingly.
Failure to include income that is taxable
Many individuals, particularly who have just started work, fail to include other income like interest earned on fixed deposits or profit on sale of shares etc.
Remember, these are not tax free income and should be included in the tax returns. If this is not added you should file your income tax returns all over again.
Failure to check form 26 AS
Form 26AS would show you your exact income, at least for people who have had TDS cut.
The deductions made there and income shown by you in the tax returns should match or exceed, what you have filed in your returns. Please check this form before you file your tax returns.
Sending the ITRV form to Bangalore
Once you file your tax returns, you have to send the income tax returns acknowledgement by ordinary post to the income tax department, failing, which your returns may not be processed. Make sure you dispatch the same.
This is not required, if you have linked your Aadhar card at the Income Tax website.
Incorrect bank details
If you have a refund that is due and your bank details are incorrect, be rest assured that you would not receive your refund. Double check the correct bank account details.
If it is returned to the IT Department, you will have to login to the website and apply for a duplicate tax refund.
Incorrect address details
You also need to notify the Income Tax of your correct address. This is because, if they send the refund to the wrong address, it could be a cumbersome process for getting the refund back.
Errors in claiming Sec 80C deduction
Make sure that you claim the correct amount of 80C deduction. Mistakes could result in filing incorrect tax returns.
As mentioned earlier, check the form 26AS before you file your tax returns.