file your ITR
As per reports, in the financial year of 2019, over 50 lakh individuals filed their ITR or income tax returns. The figures indicate that more individuals are now aware of both the benefits of filing tax returns and the repercussions of not completing the same. Consequently, it becomes vital for taxpayers to ensure that they are completing the process accurately. Likewise, taxpayers need to eliminate the risk of making any mistakes while filing their tax returns to avoid receiving a show-cause notice from the concerned authority.    

Top mistakes to avoid

Here’s a list of mistakes taxpayers need to avoid to file their returns –    
  1. Using an incorrect form
To begin with, it must be noted that the form individuals use to file their income tax serves as vital proof of income. For instance, Form 16 is deemed to be a crucial document to apply for a credit card or loan. Hence, it is crucial that taxpayers use an accurate form that is applicable to their case to avoid their income from being termed as ‘defective income’. Doing so, it will not only help avoid legal percussions but will also help complete several official processes, including availing cards like the Bajaj Finserv RBL Bank SuperCard. No providing the requite set of documents is one of the reasons for credit card applications being rejected.

Read more: YOUR GUIDES AND RESOURCES FOR INVESTMENT AND FINANCE
   
  1. Not reporting total earnings
Taxpayers should make it a point to report all their incomes, including capital gains, interest earned on investments like fixed deposits and savings schemes, etc.  Individuals who do not report their total tax earnings often miss out on the opportunity claim deductions that apply to their case.    
  1. Not mentioning the tax-exempt income
Additionally, as per Section 139(1), taxpayers must report their aggregate income in a financial year, whether it’s taxable or not. It is vital to do the same to generate an income statement that would help them claim their deductions accordingly. Further, income tax statements come in handy while availing a loan from leading institutions like Bajaj Finserv. They consider such statements to be potent financial proof and approve applicant’s loan or credit card application. Further, learn how to opt for a personal loan on credit card. Similarly, figure out the ways to manage the repayment of the same. Also, as a means to manage your credit card debt efficiently, you should know how to convert credit card purchases into EMIs.    
  1. Leaving out income from the previous job
In the event taxpayers leave out income from their previous job in their tax returns, they have to provide suitable reasons for doing so to the income tax department. Additionally, it must be noted that such omission may show discrepancies in their tax returns and further attract an additional penalty.    
  1. Delay in filing ITR
Delaying the process of filing ITR is not a wise decision for several reasons. It not only shows inaccuracy in the income statement but further attracts a heavy penalty. Therefore, taxpayers should make it a point to file their income tax returns ahead of the last date and streamline the process responsibly.    
  1. Not reporting an increase in income
Contrary to popular belief, misrepresenting income in any form may come with severe legal actions. Consequently, taxpayers who hold back information relating to their increase in income may be facing jail time and penalty.    
  1. Offering inaccurate details
Similarly, individuals must make it a point to provide accurate personal details while filing their tax reports. Any mistake in their name, address, email or contact number would lead to missing out on crucial notifications sent by the concerned authority. To ensure no inaccuracy is present in the report, taxpayers should recheck the information provided before submitting the ITR.   Conclusively, by avoiding these mistakes, you would be able to file your ITR accurately. It would further help you to accumulate the essential documents and statements that serve as proof of income to avail several services.

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