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5 Common mistakes in the Income Tax Return filing to avoid

Be cautious while filing of Income Tax Returns. Even a small mistake in your return may result into a notice from Department. When returns are assessed every minute detail if wrongly entered may put you in between different notices and if no proper reply given to any such notices then you may encounter a series of notices and scrutiny.

Many assesses have approached us with such notices. While going through notices, we noticed that there were common mistakes in most of the returns. If few things are taken care of when returns are filed then assesses can avoid notices to a great extent. Find below 5 common mistakes done while filing of return:

  1. Providing Wrong Basic Information – ITR requires basic information of the assesses is usually not provided correctly. If this information is not entered correctly then it will definitely delay in processing of your return.
  2. Disclosure of Bank Details- While filing of return extra care shall be given when details regarding bank account are being filled up. In this column, following information shall be provided:
    • Bank Account Number
    • IFSC Code
    • Saving or Current Account
    • Selection of account in which refund shall be credited, if any.

    Above mentioned details shall be checked twice as this section is mostly found incorrect. Due to this, taxpayers have to face issue mainly in respect to refunds. Many cases are found where refunds get credited to some other assesses’s bank account for the only reason that bank account mentioned in the ITR was incorrect.

    Due to own mistakes, assesses gets harassed in knowing and getting back their refund in correct bank account. Therefore, bank account number and other related details shall always be reviewed before filing of return.

    It is also to be noted that as per new ITR issued for Ay 2015-16 requires that all saving bank account details held by assesses anytime during the previous year shall be disclosed. This includes Joint, NRE and NRO account held by the assesses. Thus, all account even if inoperative shall be disclosed.

  3. Deductions & Tax credits – Deductions helps us in reducing our tax liability. Mostly,in this section arises due to unawareness. Missing out any deductions which is applicable in your case can increase your tax liability. On the other hand, any deduction claimed in ITR which is not correct may lead to demand notice.
  4. Selection of correct Form – Income Tax Department has notified various ITR Forms different class of assesses. As income of assesses varies, ITR Forms for them also varies. Sometimes minute differences in relation to income changes Form to be filed.It is generally presumed by assesses that ITR Form filed in last year shall be filed in current and onward years. This is the misconception which leads to defective return or notices. So, assesses must understand that ITR Forms must be selected on the basis of the income of the year for which return is being filed. Therefore, ITR Forms may vary from the last return filed.
  5. No tax liability, no filing – Income Tax Act specifies class of person to file their ITR on before Due Date. Department has specified certain basic exemption limit. It is mandatory to file the return if gross total income exceeds the basic exemption limit specified. Limit specified for AY 2015-16 is Rs.250,000. This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old).However, it is advisable that every assesses shall file their return every year irrespective of income earned during the year. Even if you don’t have tax liability, filing income tax return is encouraged for the following reasons:
    • To claim your refund;
    • To carry forward of losses;
    • To take loan or overdraft from financial institution;
    • To apply for passport; and many more.

    Assesses must be aware of tax laws while filing return. Mistakes in return are not entertained by the Department and issue notices for the same. Subsequently, reply to those notices and filing of return again becomes an extra burden for taxpayers. It is truly said that prevention is better than cure. Thus, while filing return you be careful to prevent any mistake.

    Please feel free to write to us at for any assistance on filing of income tax returns.


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