Skip to main content

Errors to avoid when Filing Returns 2014

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

Errors to avoid when filing returns

With July 31 just around the corner, everyone must be busy with their income tax returns. Filing returns has become convenient since it can now be done electronically. But the flip side to this is that taxpayers often wait till the last day to complete the process. Due to this often there could be mistakes in the returns, which can lead to problems later.

Many of these common mistakes are simple, human errors. Paying attention to these things can make returns filing a smoother and error free process. Here are some of the common mistakes taxpayers make and the consequences of the same.

Choosing an incorrect form

This is the first step to filing tax returns. And taxpayers need to be careful about the form they choose. There are five forms to choose from, depending on the source( s) of income. If you make a mistake in choosing the right form, the entire exercise of filling returns will need to be redone. Here's what each Income Tax Return ( ITR) stands for: ITR 1: For those who earn an income from salary, pension, other sources - interest income on savings bank account and fixed deposit and from one house property ITR 2: For individuals or Hindu Undivided Families ( HUF) that earn an income from all the sources given in ITR 1, more than one house property, capital gains, other sources, and foreign assets ITR 3: For individuals or HUF who fulfils the criteria in ITR 2 and are also a partner in a firm, but do not carry on a proprietary business or profession ITR4: For individuals having income from business or profession ITR4S: For individuals having income from presumptive business

Providing incorrect personal details

Every year a large number of returns are rejected because of incorrect personal details. The ITR form needs both residential and e- mail address. One should ensure that a valid and functional e- mail address (that is regularly used), is provided in the ITR form. If you are staying in arental accommodation or hostel, avoid mentioning that address on the form. Instead, mention your permanent address, where a communication from Income Tax ( I- T) Department can be received/ attended to.

The Permanent Account Number ( PAN) is often written wrongly in ITR. Missing even one number or alphabet of your PAN will lead to your ITR form not being processed. Besides, you could be levied with a fine of ₹ 10,000 for an incorrect PAN entry, as per I- T rules.

Similarly, you should be be careful about Tax Deduction Account Number ( TAN) of your employer. You can find this number in your Form 16.

If you are expecting a refund, you need to mention your bank savings account number and the nine digit MICR number correctly. Or, your refund may get delayed unnecessarily.

This is another common mistake taxpayers make regularly.

Failure to include certain income

There are certain incomes which are left out erroneously as many taxpayers dont know that the same should be mentioned at the time of filing taxes. For instance, income from other sources or interest income and so on.

Income from other sources:

Long- term capital gains and dividends from equity mutual funds and listed securities are not taxable if held for more than one year.

That is, the long- term capital gains tax on equity and related instruments is zero. But such capital gains form a part of your income from other sources and you need to give details about these in the tax returns form. Short- term capital instruments is taxed at flat 15 per cent. At the same time, short- term capital gains from debt funds is taxed at slab and long- term gains from debt funds will be taxed at 10 per cent without indexation or 20 per cent with indexation, whichever is lower. However, this year's Annual Budget has changed this rule and these will be taxed differently for investments made in the current financial year.

Not considering more than one Form 16: If you've changed jobs in the middle of a financial year, ensure that you collect your Form 16 from the previous employer as well. Many make the mistake of reporting only the current employer's income in their returns. Since one has availed tax benefits from both employers, you still owe some additional tax liability at the time of filing tax returns.

Missing TDS details: Since all banks deduct tax at source ( TDS) for the interest income accrued on your fixed deposit accounts, it doesn't mean you don't assess your tax liability and mention it in your returns form.

In reality, banks only deduct 10 per cent tax on interest income, whereas you may be in the higher tax slab of 20 per cent or 30 per cent. So if you don't give information about interest income in the returns form, there is a chance that you may receive a notice from the tax department. The portal will take into account Form 16A details you've added and compute the data.

The same is the case for interest Bangalore office. This Make sure you sign the ITR- V form only in blue ink. If signed in black ink, it But there are some conditions revision is allowed only if the omission was unintentional. There is also a time line. You can revise I- T returns before the expiry of a year from the end of the assessment year or before the completion of assessment of returns, whichever is earlier. So, the returns of assessment year 2010- 11 can be revised till March 31, 2012, or before the completion of the assessment.

That's why it is suggested that assessees take a few moments out a little in advance to take a careful look at what is required in the ITR form, read the instructions and then file returns. This can prevent a lot of these errors.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now