It's important to avoid mistakes while filing of tax returns, or else you could be running around to the IT department for clarifications at a future date. To begin with, remember that you have to file tax returns online, if your income exceeds Rs 5 lakhs. Here are a few mistakes you can avoid.
1) Forgetting to post the ITR-V
After filing returns online, please remember that you need to post the ITV-R to the Income Tax Office in Bangalore, only after which your tax filing is complete. Also remember, there is a deadline of 120 days in which you are required to do so.
2) Not reporting income that is exempt
Incomes from various sources are exempt from tax like long-term gains, dividends, etc. Although you do not have to pay any taxes on such incomes, it is extremely important to report them.
3) Last minute filing
Avoid last minute filing of tax returns, as you could have problems with slow servers, incorrect details being filled in etc., due to last minute rush. Remember that the last date for filing tax returns is July 31, unless the IT department notifies an extension without penalisation.
4) Filling incorrect bank details
Make sure you mention your bank details correctly. The IT refund would mention your bank number on the refund cheques and in case of electronic transfer, in correct bank account details, means you are unlikely to get refund credit.
5) Mistakes in personal data
Make sure there are no mistakes in your personal data, like date of birth and above all the PAN card number.
6) Not checking the IT returns again
Whether you have file returns manually or online, mistakes are likely to happen. It's therefore imperative to check the filled-up form thoroughly in order to avoid errors. Even if your tax consultant or accountant fills the details on your behalf, you need to re-check the same. It's your tax returns and the onus is completely on you.