3 Mistakes to Avoid When Filing Your Income Tax Return Onlineby Paper Tax efiling of income tax return
Filing your IT return online is one of those things in life you don’t want to go wrong. One wrong step or detail while filing your return, and you get a new friend in the IT department, keeping a watch on all your financial transactions then on. Observing errorless and precise documentation when filing your income tax return not only saves you from any legal trouble in the future, but also helps you save a good amount of your yearly income.
But no matter how many times one does it, chances of getting it wrong are always high. So to save you from such a destiny, have a look at 3 mistakes that you should avoid at all costs when filing your income tax return online.
1. Wrong or Incomplete Personal Details
With e-filing of returns, the chances of giving incomplete details are near to zero. However, either because of the last-minute rush or taking the process lightly, people often fill incorrect details. An unbelievable number of returns are rejected every year due to incorrect personal details alone. Writing a short or long form of your name that doesn’t match other sources, misspelled names, wrong IFSC code of banks, etc. are the major reasons behind delayed returns if not rejections.
2. Not Declaring All Sources of Income
Irrespective of how much you make from a source, each and every source of income needs to be stated clearly when filing an IT return online. To tax it or not is a decision that rests with the IT department. Many make the mistake of not stating all their income sources properly not out of any malign intent, but because of lack of knowledge on the topic. Some examples of what sources other than your regular income might look like include interest earned on a savings account, Insurance and public provident fund (PPF) fixed deposits (FDs), etc. You would be surprised to know that even the cash backs that we get nowadays when using different kinds of online services, like online food orders and payments, are taxable, but only after they exceed a certain limit for a given year, which is 50,000 at the time of writing.
3. Incorrect Property Declaration
Owning or building a property-based portfolio is a major part of our investment strategy today. The major idea behind such investments is the belief that property rates can never fall, even if they have been stagnant for an extended period of time. But not many of us know that the moment we own more than one property, we land under the IT department’s radar. Only one property can be declared as “Self-occupied”, while for the other ones one has to pay taxes.
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Created on Jun 19th 2019 00:38. Viewed 318 times.
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