If you are planning to file ITR make sure that you understand the tax rules. All the deductions and exemptions should be known by you. It is possible to provide incorrect information at the last minute in a hurry. So, it is advisable to file your ITR on time.
Returns can be filed either manually or online. Filing taxes can be a difficult task that can lead to costly mistakes and frustrations later on. To avoid these mistakes you can take help from a professional.
Here are some common mistakes to Avoid with Tax Preparation.
- Selecting the incorrect form
It’s really important to choose the right ITR form for filing returns. Please do this to make sure the tax department processes your return. The ITR form you choose depends on how much money you earn or which group you belong to. A certified accountant recommends that taxpayers conduct a thorough analysis of the qualifying conditions for each form and seek professional guidance if they encounter any confusion. TaxBuddy makes filing taxes easier, ensures correctness, and complies with tax rules. Moreover, if you apply TaxBuddy Coupons while filling your ITR you can also get a good discount.
- Misspelt or different Names
The IRS cares about numbers, but it also cares about words and names. If the name of someone who pays taxes, their spouse, or their children doesn’t match the tax ID number that the Social Security Administration, or SSA, has on file, the IRS may reject or delay processing the tax return. This is usually a problem for new wives. Some women change their names when they get married. The IRS now recognizes same-sex marriages. If you didn’t tell the SSA soon after you got married, do it now to make sure that your new name won’t cause a problem when you file your first joint tax return.
- Use Correct Format
The income tax return forms have several rows and columns that must be filled out when submitting one’s tax returns. The details must be entered in a particular format, which if not done correctly can lead to errors in the returns. For example, dates must only be entered in the DD, MM, and YYYY format. If the date were to be entered in any other format, the returns would be incorrect.
- Form 16 From two or more Employers
Taxpayers get different Form 16s from each employer when they file their tax returns when they switch jobs. Filing returns with multiple Form 16s can be tricky, and many taxpayers don’t know what to do. In such cases, taxpayers have to combine their incomes from both employers under their income from salary. Keeping meticulous records of their earnings from each job is a good way to avoid mistakes in tax forms.
- Details of all Bank Accounts
Many taxpayers have multiple bank accounts, but a large number of those filing returns do not mention all of their bank accounts in their ITR. This omission is against Income Tax rules as all assessees are required to disclose details of all their domestic and foreign bank accounts. You are also required to provide details of all bank accounts that were closed during the financial year.
- Not Mentioning other Income
When filing income tax returns it is mandatory to disclose all of your sources of income. If you are a salaried individual and have other income from multiple sources such as rent from residential or commercial property, interest from fixed deposits, shares, capital gains, etc. then your salary will be your primary source of income. It is mandatory to mention all of these different incomes along with their sources at the time of filing ITR, even if such income is exempt from tax.
- Credits & Deductions
There are many credits and deductions you can get. Moreover, these deductions and credits can reduce or even eliminate your tax bill. Everyone’s tax situation is unique because everyone’s life is unique. There are times when you can find answers to tax questions online. Use care when doing this action. ClearTax is India’s most advanced tax filing tool, serving all income earners. You can take advantage of the ClearTax tool while filing your tax. Additionally, if you use ClearTax Coupons you can get a good discount on the charges.
- E-Verify your ITR on time
E-verify your income tax return via Netbanking, Aadhaar Card, or the EVC process on your mobile number and email within 30 days after submitting your tax return electronically. If you are unable to e-verify your return, you can sign and send the ITR-V to the CPC via ordinary or speed post within 30 days of the e-filing of the tax return.
Conclusion
If you are planning to file your own return, you should understand the rules of tax. It is also important to understand the various deductions and exclusions available to you. The tax department sends notices because many self-taught tax filers make mistakes with their returns. It is better to take help from C.A while filing an ITR. A Cashaly coupon app gives you exclusive offers, discounts, deals and extra cashback on your online purchases.
