Knowing Tax Filing Failures
Tax error can happen to anybody, as we are often hurried and a little confused at the time of filling tax. Some of the most common tax filing errors taxpayers make when filling returns have been reported by the internal revenue system. The rundown here:
- False or incomplete security numbers: It can be as easy to transpose numbers as you can think of to type faster. And a single digit error can make things go wrong. So make sure that you enter and double check the right digits.
- Deduction available twice: This is the most common mistake that can be made by anybody, and this form of error is mostly made by salaried taxpayers. By ignoring the previous revenue, don’t think you can escape.
- Exempt income is not mentioned: Long-term capital gains and equity securities, as well as interest on your PFF and tax-free bonds, are tax-free. Under the new tax filling provision announced this year, you must use ITR to file your return if the cumulative exempt income during the year exceeds Rs 5,000.
- Not including interest: Most taxpayers assume that the interest gained on bank deposits is not included in the deduction. Even after the TDS has been deducted, tax is payable.
- Not verifying the specifics of the TDS: Before you file your returns, check whether or not the tax paid last year was attributed to your name correctly. Details of the tax withheld on behalf of the taxpayer are included in Form 26AS and can be easily reviewed online.
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