ITR: The last date to file Income Tax Return (ITR) for the financial year 2021-2022 or assessment year 2022-23 is July 31.
ITR Filling: The deadline for filing ITR is getting closer. The last date to file Income Tax Return (ITR) for the financial year 2021-2022 or assessment year 2022-23 is July 31. Many a times we delay in filing returns and then make hasty mistakes as the due date approaches. Returns can be filed either manually or can be filed online. Here we have explained the mistakes made by taxpayers while filing returns. With its help, you can avoid these mistakes.
The first thing that needs to be kept in mind is to choose the right form while filing the return. If you make a mistake in this then your return is not carried forward by the Income Tax Department. The ITR form is selected on the basis of the nature of income or category of taxpayer. If the taxpayer has filed a wrong return form, he may get a defect notice from the department, which has to be rectified within the stipulated time frame.
Income Tax Return: Deadline for filing ITR is near, stepwise understand the whole process
Personal information and bank account details
ITR filing for the financial year 2021-22 is based on the pre-file JSON utility, under which personal details are automatically entered in the ITR form of the tax portal. It is important that taxpayers provide their correct address, contact number, email-id in their tax portal. Keep in mind that wrong information, for example in bank account details, can cause problems in the refund credit process.
Reconciliation of Form 26AS and Form AIS with the details available with the taxpayer
In order to increase transparency in filing correct income information, the government has introduced Form Annual Information Statement (AIS). Taxpayers should file their returns as per Form AIS and Form 26AS. Taxpayers can submit feedback on Form AIS to avoid any enquiries from the tax department.
Mention all sources of income
If you have any other source of income from your primary income, you must disclose it. Taxpayers are required to disclose savings account interest, fixed deposit interest, rental income from house property, all short term capital gains and income from other sources. Whether it is taxable or exempt, it is necessary to mention all the sources of income.
Filing Form 67 for Foreign Tax Credit Claim
It is mandatory for taxpayers seeking foreign tax credit for foreign income tax in India to file Form 67 before filing ITR. Apart from filling Form 67, taxpayers are required to submit proof of taxes paid abroad. Copy of foreign tax return, tax payment challan.
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correct bank account details
Taxpayers claiming refund should fill correct bank account details besides validating the bank account. Any mistake on the part of the taxpayers can lead to delay in refund of tax.
reporting exempt income
Many taxpayers do not disclose exempt income (such as interest income from PPF, interest on Sukanya Samriddhi account, gifts from relatives) while filing ITR. Non-disclosure of exempted income can lead to inquiry by tax authorities and denial of exemption.
Verification of ITR-V
ITR filing does not end with the process of filing ITR. Taxpayers have to verify their ITR electronically using either OTP or EVC options. In addition, a manually signed ITR-V has to be sent to the Centralized Processing Center (CPC). Failure to verify the ITR-V results in the entire effort of filing it in vain.
(By Sudhakar Sethuraman, Partner, Deloitte India, and Ankit Agarwal, Manager, Deloitte Haskins & Sells LLP)