Avoid Some Common Mistakes In Income Tax Filing.pdf

Navigating Income Tax Filing in India challenges even the most conscientious taxpayers between ever-shifting deadlines, rules, and eligibility criteria. Simple yet serious slip-ups often transpire in a rush to complete returns before looming due dates, stalling refunds and risking financial penalties. This blog will review the most frequent Indian Income Tax Return Filing mistakes below to learn how improving vigilance, record-keeping, and comprehension of the latest protocols protects your bottom line this filing season.

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2. NavigatingIncomeTaxFilinginIndiachallengeseventhemostconscientioustaxpayers
betweenever-shiftingdeadlines,rules,andeligibilitycriteria.Simpleyetseriousslip-
upsoftentranspireinarushtocompletereturnsbeforeloomingduedates,stalling
refundsandriskingfinancialpenalties.Thisblogwillreviewthemostfrequent
IndianIncomeTaxReturnFilingmistakesbelowtolearnhowimprovingvigilance,
record-keeping,andcomprehensionofthelatestprotocolsprotectsyourbottomline
thisfilingseason.

3. Beforegettingintothediscussion,ifyouareconfusedandwantexperts’
helpnavigatingtheprocess,reachouttoEazyStartupstoday.IncomeTax
Filingisnotadifficultprocess,andwiththehelpofEazyStartupsexperts,
youcanevenquickentheprocesssignificantly.Contactustoday.

5. Missing Key
Deadlines:
Incometaxdeadlinesnowfall
earlier,withFY22-23filingsdue
July31st,2023.Plus,latefeesnow
applyimmediatelyafterduedates.
Missingthesetighteneddeadlines
risksRs5000+penaltiesjustfor
delays.Similarly,employersmust
issueForm16wagestatements
earlierthanJune15th.So
taxpayersmustactquicker,
gatheringpaperworkfromtheir
sidetohitfilingcutoffsvspast
years.Markcalendarswithnew
timings.

6. Errors in
Personal
Information:
Whetherfilingfirstreturnsor
repeatingannualsubmissions,
takecareinenteringidentifying
detailslikelegalname,PAN
number,dateofbirth,address,
andmobilenumbers,which
mustperfectlymatchAadhaar
cardsandPANrecords.Small
typoscaninvalidateentire
applications,freezingrefunds
awaitingidentityconfirmation.
Verifydatadirectlyfromsource
documentsbeforefiling.

7. Unreported or
Underreported
Income:
Acceptingcashpaymentsforservices
orearningrental/investmentincome
oftenleadstounderpaymentifnot
carefullyaccountedforundersection
44AD.Thetaxdepartmentexpects
incomeestimatestomatchsector
profitabilitynorms.So,listallrevenue
sourcesrigorously.Similarly,salaried
taxpayersmustreporteveryemployer
providingForm16statementsto
avoidprocessingdelayswhen
reportedwagesdifferfrom26AS
totals.

8. Inaccurate Tax
Regime
Selection:
Filersnowchoosebetweenanolder
vsnewertaxregimeeachyear,–but
selectingimproperlyleadsto
miscalculations.Thosestickingwith
pastsystemsneeddiligentpaperwork
backingallconventionaldeductions.
Butpickingthenewregimewhenthe
oldformatpromisesbiggerrefunds
leavesmoneyunclaimed.Modelboth
waysbeforefilingtomaximize
benefitsthisseason.

9. Non-Disclosure
of Foreign
Assets:
Newlegislationnowmandates
declaringoverseasassetslikeoffshore
accounts,propertiesabroad,equity
investmentsoutsideIndia,andmore
ifvaluedoverRs50lakhs.Failing
disclosurerisksmajorpenaltiesplus
prosecution.Socarefullydetailall
assetsbeyondIndianbordersunder
ScheduleFA,providingallspecifics
mandatedtoavoidissueswithtax
authorities.

10. Errors
Computing Tax
Liability:
Correctlyassessingthetaxowedeachyear
tripsupmanyfilers,crunchingnumberson
theirownversusrelyingonCA
consultations.Missingeligibledeductions,
misinterpretingexemptionlimitsor
applyingoutdatedratesallyieldincorrect
taxduespayabletothedepartment.
Countercheckallcomputationsbefore
acceptingliabilitiestopreventcostly
revisionslater.

11. Submission
Errors:
India’smassivedigitizationpushaimsfor
predominantlye-filingtaxreturnsbacked
bydigitalsignaturesvstraditional
paperIncomeTaxFiling.Thismethod
expeditesprocessingbutonlywhen
properlyexecutedfromstarttofinish.
Uploadingincompleteformsandmissing
addendumslikeSchedule80Gfordonations
withexpireddigitalsignaturessuspends
returnsawaitingcorrections.

12. Final Note
IncometaxrulesevolvecontinuallyinIndia,
demandingvigilantadherencefrom
taxpayersseekingrapidrefundswithout
penalties.However,avoidingcommon
mistakeswhilefilingtaxesensuressmooth
sailingthroughfilingseason.Seekinghelp
fromexpertprofessionalswhileIncomeTax
Filingalsoprovidesexpertisesteering
arounderrorsinvadingbottomlinesthis
year.ContactEazyStartupsforthebest
helpwithIncomeTaxReturnFiling.