Tax season 2020 – Mistakes to avoid while Filing your ITR

Income Tax Return Filing can be intimidating if you are new, it need not be. To make the whole process easier for you we’ve made a list of mistakes for you to avoid while Filing your ITR

1. Filing for incorrect Assessment Year/ITR Form
2. Mismatched/Incorrect Personal Information
3. Incorrect Bank Details for Tax Refund
4. Not disclosing all Income Sources
5. Mismatch in TDS declared vs. Form 26AS
6. Failure to verify ITR- V on time
7. Delay in Payment of Self Assesment Tax

Filing for incorrect Assessment Year/ITR Form

While filing your Taxes, you need to choose the Assessment year and ITR Form.

You could E-file your taxes on the Income Tax website, where you’re supposed to start with choosing the Assessment Year (A.Y.) and ITR Form.

Assessment Year starts in April and ends in March next year- which occurs after the Financial Year. You need to file ITR not in the year in which you earn the income but after the end of that year i.e, in the assessment year. 

Similarly, you need to select an ITR form depending on your income sources. Usually,

• ITR-1 is for Income from Salary
• ITR- 2 is for Capital Gains – sale of equity shares, mutual funds, house property, etc. and for NRIs
• ITR-3 is for business / professional income like trading, proprietor, etc.
• ITR-4 is filed by taxpayers opting for presumptive taxation scheme.

Check which ITR Form to file?

Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.

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Check which ITR Form to file?

Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.

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Or here’s another way: you can entirely skip all the confusion and just upload Form 16, investment statements, and let Quicko choose the correct ITR form & file taxes online.

Mismatched/Incorrect Personal Information

Make sure the following details match in your PAN, Aadhaar and Income Tax database:

• Name
• Date of Birth
• Address
• Email id
• Phone

Mismatch in such details is likely to give you an error while filing your ITR.

It is mandatory to link your PAN with Aadhaar before you file your Income Tax Return.

Link your PAN with Aadhaar

Here's how you can link your PAN with Aadhaar

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Link your PAN with Aadhaar

Here's how you can link your PAN with Aadhaar

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Incorrect Bank Details for Tax Refund

If you are eligible to get a tax refund, make sure you enter these bank account details correctly:

• Bank name
• Account number
• IFSC code

Remember, the Income Tax Department may have the information of your bank account transactions using the AIR (Annual Information Report) filed by banks. So, do not forget to report all your bank accounts.

You will get your Income Tax Refund in your primary bank account. Choose the one which you use more frequently, so you don’t miss out on saving, splurging & investing it.

Quicko verifies your Bank Account, so your refund reaches you.

Track your Income Tax Refund

Enter PAN and Select the Assessment Year to check your Income Tax Refund Status

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Track your Income Tax Refund

Enter PAN and Select the Assessment Year to check your Income Tax Refund Status

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Not disclosing all Income Sources

All of us earn income from various sources like salary, rent, capital gains, bank interest, dividends and more.

Eg: You received interest on your tax refund. Now the interest is taxable under the head ‘Income From Other Sources’.

So, it’s not uncommon to miss out on reporting all Income Sources. That, however, could get you a notice from the Income Tax Department. Use your Form 26AS to report all your incomes.

Mismatch in TDS declared vs. Form 26AS

You should check Form 26AS for details of your tax credits and high-value transactions. It includes details such as:

• Tax Deducted at Source (TDS)
• Tax Collected at Source (TCS)
• Advance Taxes
• Self Assessment Taxes
• Income Tax Refunds
• High-value transactions like Shares, Mutual Funds, etc.

A mismatch between the TDS reported in your tax return and Form 26AS will result in an notice u/s 143(1)(a) from the Income Tax Department. If you end up getting one, here’s how to respond to it.

Failure to verify ITR- V on time

ITR- V is the verification document sent to you by the Income Tax Department once you’ve e-filed your ITR. You need to verify your ITR within 120 days of filing your return

You can e-verify your ITR using different methods to e-verify your ITR like

• Net Banking,
• Aadhaar OTP
• Demat Account
• Bank ATM
• Sending physical copy to CPC Bangalore

Keep in mind, the ITD will not process your ITR or issue your tax refund unless you e-verify your return.

Delay in Payment of Self Assesment Tax

Financial year ends on the 31st of March. If you have any unpaid tax liability, interest is re-calculated every month. So the more you delay in paying taxes, this penalty is likely to increase.

Ready to file your tax return?

We’re excited to share some updates about Quicko!
 
This season, we’re proudly serving millions of customers with our partners – Zerodha, ICICI Direct, IDFC First Bank, Kotak Securities, Scripbox, Sqrrl & many more!  

Here’s a quick walk-through, now let’s get started!

💬Have Questions? Ask Away!

Have any questions ?

Shoot your questions regarding taxes on our AMA thread.

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Have any questions ?

Shoot your questions regarding taxes on our AMA thread.

Ask