Mistakes are a part of being human. And when it comes to a task as confusing as
the filing of tax returns or understanding what a particular
income tax Return Form
is for, mistakes have every probability of increasing in number. Paisawaisa tells
you ways to avoid some of the common mistakes that you may tend to make.
Golden rules to remember when filing your tax returns:
- Selection of the right form is a
must ! ITR-1/IR-2/ITR-4 and many others forms are available for income tax filing
but make sure that you select the correct form only after taking into account all
the sources of your income.
- Is your income less than Rs. 10 lakhs and you are still adding a 10 per cent surcharge?
Don't do it! However, an education cess of 3 per cent is required all the same,
on the tax amount.
- Your PAN ( Permanent Account Number ) and your address are vital pieces of information.
Make sure you fill them clearly to ensure that any communication from the tax authorities
is not lost in transit.
- Do not hide the interest you have earned from bank deposits or NSC certificates.
These are the easiest to overlook, since, they are not shown in Form 16.
- Remember that Rs. 1 lakh is the maximum deduction that you can avail for investment
made under Section 80C, Section 80CCC and Section 80CCD.
- Your documents are the evidence for your claims. Always keep them in safe custody,
to counter any scrutiny questions that may come up to challenge your claims.
- A refund can only come to you if you have given your bank account details properly.
Plus, if you want ECS to directly put the money into your account, fill in the MICR
code correctly.
- Value your and everyone else's time. Do not wait for the last day to file your returns.
You may end up getting hassled in queues and trying and retrying online tax return
filing websites. Complete what has to be done well in time.
If you keep these rules in mind, you will avoid the blunders that sometimes even experienced tax payers may make.
