Common Mistakes in Income Tax Returns
In India, financial year ends on 31st March. And every individual whose income is taxable has to file income tax return. The income tax form which has to be submitted to the income tax department contains the income earned in the previous financial year and how much tax was paid.
Currently in 2014, individuals are filing tax for the year ended 2013-2014 which is called as previous year whereas 2014-2015 would be called as assessment year. And all the income tax slabs declared in the budget of 2013 would be applicable. The exempted limit are as follows:
1) For men and women aged less than 60 years the limit is INR 2 Lacs whereas for individuals aged more than 60 years the exemption limit is INR 2.5 Lac.
2) For super senior citizen with age more than 80 years the exemption limit is INR 5 Lacs.
Rules to follow while filing income tax returns
Many people who do not have experience in filing income tax returns commit mistakes which can result in delay of processing your application in addition to frustration. So what are these common mistakes:
1) Choosing Correct Form: There are set rules for choosing the income tax form. Individuals with no prior experience in filing the form often commit mistakes in selecting the right form.
2) Never Sign on blank form: Many people take help of agents to file their return. And since agents deal with multiple clients at a time, they first get the income tax form signed and then fill all the details on their own which can cause mistakes. So always make sure not to sign on a blank form and if you're doing that, verify all the details once.
3) Entering incorrect numbers: Individuals should correctly enter PAN, MICR code, account number, TAN number of employer and others on the return form. Even a small mistake can result in penalty by the income tax department. Make sure you have all the documents required handy while filing the return.
4) Failure in sending acknowledgement slip: The most common mistake when e-filing your income tax return is failure/delay in sending the printed signed copy of ITR-V receipt/acknowledgement slip to CPC Bangalore. This form must be sent within 120 days after you e-file your return and as per rule, individual must send this document via Indian postal service or speed post. Never send it via courier service. If you don't send this receipt then your return filing process is considered incomplete.
In case you are using postal service, then send it to: Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka
In case of speed post send it to: Income Tax Department – CPC, Electronic City Post Office, Bangalore – 560100, Karnataka. (Notice a small difference "Post Box No – 1" is not required)
5) Not following rules when sending ITR-V: When you send ITR-V to CPC, keep following rules in mind:
- Only A-4 size paper in white color is acceptable. Print out should be very clear and easily readable
- Only blue ink should be used for signing the document
- Bar code section should be left untouched
- Printing of original or revised income tax returns should not be done back to back. ITR-V should be printed separately
- Paper should neither be folded nor be stapled
Failure in following above mandatory rules might result in delayed processing of your application or rejection.
6) Not taking form-16: If you have changed employer during a financial year then you should take form-16 from both old and current employer. If you don't inform your new employer about the savings made during your tenure with the previous employer then you might have to pay extra tax.
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