With the hope to generate maximum awareness about filing income tax returns (ITR) by the deadline July 31, the Indian government selected July 24 as National Income Tax Day. With just a week to go, it is time to realise the importance of filing ITR and to get it done immediately. While doing so, most of us make common errors due to oversight. Some of these are listed below for our better understanding:
Email ID and mobile Number
As the income tax department communicates with you through email and/or mobile, it is important that these details are updated in the ITR. Preferably provide your personal email id and updated mobile number to ensure that there is no break in case you change your job.
Details for refund bank account
As the income tax department remits the income tax refund in the bank account directly for refund upto Rs 50,000, it is important to ensure that the bank details are correct. In the eventuality of you having furnished wrong information about your refund bank, the refund will not get credited to your account.
In order to receive the fund you will have to go through the process of making request for reissue of refund. So ensure that the details like account no, IFSC code are correctly mentioned. Do not give details of the bank account which you are planning to close in the near future
Details of TDS as well as advance tax and self assessment tax
Since you are not allowed to attach any document as proof of payment of taxes with your ITR, the credit for TDS is given on the basis of information available with the tax department. So while filling details of the TDS, please ensure that the TAN number of the deductor is as per form no 26AS. Likewise, for taxes paid by you be particular while filling in the details of challan number and BSR code. In case of any error, you may not get the refund or may even get a demand notice and will have to go through the hassle of filing the rectification request under section 154 to get the error corrected.
Filling in the schedule CG of capital gains
The schedule of capital gains CG is relatively complex and you need to be very careful while filling it. Be careful in bifurcating your taxable capital gains earned for the purpose of advance tax as the law requires you to pay the capital gains instalments for capital gains on the next due for advance tax date falling due after the capital gain transaction, Any error may cost you in terms of higher interest. Likewise, you are also required to furnish the details of capital gains taxable at the different rates. Any incorrect information furnished may result in incorrect payment of taxes.
Foreign bank accounts in case you are a resident
Those of you who had stayed abroad and had opened any bank account have to submit the details such bank account/s in case the same was not closed before you came back to India even if you had withdrawn the entire amount. In case any bank account still remains in your name which is not yet closed, you cannot use the simplest ITR i.e. file ITR 1 but will have to use ITR 2 and furnish details of such bank accounts.
The author is a CA, CS and CFPCM