ITR Filing Update: If you also file Income Tax Return (ITR) every year, then this news is useful for you. After the release of Form-16 by the companies, the tax payers have started filing their ITR.
This time the last date for filing ITR has been extended from 31 July to 15 September. Experts warn from time to time that a small mistake can lead to a heavy penalty, delay in refund or notice from the Income Tax Department. Not only this, you can be charged a penalty of up to Rs 1.5 lakh. Let us know about those mistakes that people usually make during ITR filing.
Selection of wrong ITR form
The first and most common mistake people make is that they select the wrong ITR form. Each form is for a particular income group. For example, ITR-1 is for employees with an annual income of up to Rs 50 lakh, ITR-2 for those with capital gains or foreign assets, ITR-3 for those doing business and ITR-4 for those with presumptive taxation. Filing a return in the wrong form is considered ‘defective’. It is necessary to correct it within 15 days, otherwise the return may be invalid.
Checking Form 26AS and AIS
It is important to check Form 26AS and Annual Information Statement (AIS) before filing. These contain your income, TDS and other financial information. Without checking, there may be delay in refund or you may have to pay more tax. Employees should keep documents related to Form-16, home loan, capital gain and dividend ready.
E-verification is necessary within 30 days
After filing the return, e-verification is necessary within 30 days. This can be done through Aadhaar OTP, net banking or demat account. If e-verification is not possible, then send the signed ITR-V to the CPC office in Bangalore. Without verification, the return is considered incomplete and is not valid.
Penalty of up to 1.5 lakh rupees
For filing returns late, those with more than 5 lakh income can be fined Rs 5,000 and those with less income can be fined Rs 1,000. A penalty of 50% of the tax can be imposed for providing wrong information and up to 200% for deliberate wrong reporting. If businessmen do not submit the ledger or audit report on time, a penalty of up to 1.5 lakh rupees can be imposed.
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