Selecting Incorrect ITR form
One must choose the correct ITR form and check which one is applicable to them.
For Instance:-
1. ITR 1 form is meant only for an Individual assessee having Income under the heads such as salary , pension, income from house property and from other sources which do not include lottery etc.,
2. ITR 2 form is meant only for an Individual as well as HUF assessee having Income from any of the heads such as House property , salary/pension, capital gains and other sources and for those assesses who are have foreign assets as such.
3. ITR 2A form is meant only for an Individual as well as HUF assessee who derive income from heads such as salary, pension, income from house property and income from other sources and those assesses who do not have foreign assets.
* Incorrect Bank Account Number and IFSC Code
The bank account number in ITR should in no case be less than nine digits and a valid IFSC code must be specified.
* Incorrect claim of TDS
Taxpayers are required to mention the TDS amount after reconciliation of 16/16 A forms with form 26 AS or you'll have to pay an additional differential income tax.
* Forget Sending ITR V to Income Tax Department
Taxpayers are required to post an ITR V form to income tax department on the address at
Income Tax Department-CPC,
Post Bag No.1,
Electronic City P.O,
Bangalore - 560200,
Karnataka
by regular Indian Post or Speed Post only. This form shall be compulsorily sent within 120 days of the filing of the e-form of income tax return.
Nearly 10% of Taxpayers forget to send ITR V every year.
From 2015-16, the department has introduced a new way of verification under which the taxpayers are not required to send the ITR V form.
* Filing The Income Tax Return without taking effect or considering Interest Payable under sections such as 234A, 234B and 234C
* The assessor shall pay tax under sections 243B and 243C. These are the sections which are related to complete non-payment or less payment of advance income tax than the amount prescribed.
When the Taxpayers file income tax return after the valid date or when the time period has expired and ignored the interest due under section 234A. The taxpayers shall have to pay the interest even if the date has been extended even for a single day, then the interest payable would be @1% per month. If the taxpayer furnishes an Income Tax for the assessment year return beyond the date of 31st August, 2015 then he would be subject to an applicability of interest under section 234A.
Intimation and Rectification.
After the Income Tax is filed, the next process is to process the same which is done by the IT department and after that, an intimation will be generated containing the basic details of revenue and tax. If the details of the ITR filed matches, then there wouldn't be any scope for any action taken against the same , if any error is found, an application can be filed to correct such errors within the period of 4 years starting from the end of the financial year and such a rectification can be done through online.
Don't forget to check Intimation after income tax return filing which will explain that you need to file correction application or not.
* Revising the late filed Income Tax Return
A revised return can be filed within the specified time. Such a mistake can be rectified only when the income declared while filing the ITR doesn't exceed Rs. 5,00,000 and also if it is filed manually.
Foreign Assets, Bank Account, Aadhar Number and Passport Number
The income Tax department has released new ITR forms for the assessment year of 2015-2016 on 22nd June 2015 and the below heads are to filed by the assessee compulsorily such as:
1. Aadhar Number (if held)
2. Passport Number (if held)
* Details of all bank accounts held in India at any time during the previous year (except dormant account)
1. Details of Foreign Assets and Income from any source outside India.
2. Incorrect information in Personal Information Schedule:-
One of the most prominent errors often committed by the assesses are furnishing of wrong details of these things :- D.O.B, TAN No., email addresses, mobile nos., Residential address.
An assesse should understand the fact that:
1. Incorrect TAN: Will not allow him to claim the Tax Deducted at a source.
2. Incorrect Email Address: Will result in non-receipt of all intimations from CPC and other communications.
3. Incorrect Mobile No.: Will result in non-receipt of SMS based Communication.
4. Incorrect Date of Birth: Will lead in Computation of higher taxes in case of senior citizens.
5. False Residential Status: Will result in Computation of higher taxes.
6. Incorrect Aadhar no.: Will not enable Aadhar updation and EVC verification.
7. If there are any claims made of excess in deduction or when the deductions made are claimed more than once: - many cases arise when the tax assesses claim more of the deductions under some sections such as 80,80CCC & 80CCD(1), tax assesses aren't aware of the fact that the maximum amount of the deductions available under the above-specified sections in aggregate cannot exceed aggregate cannot exceed Rs.1,50,000.
There are many such taxpayers who claim deduction under section 80G by assuming it as under the head of donation.
* Claiming Tax without real payment of Self-Assessment Tax
When the Income Tax is paid without paying the whole and original payment of IT, it would result in the payment of interest @ 1% p.a under sections 220 & 221 or as deemed fit by the assessing officer. An unpaid Income Tax along with interest if an intimation is received under the prescribed sections of 234B and 234C.
One must choose the correct ITR form and check which one is applicable to them.
For Instance:-
1. ITR 1 form is meant only for an Individual assessee having Income under the heads such as salary , pension, income from house property and from other sources which do not include lottery etc.,
2. ITR 2 form is meant only for an Individual as well as HUF assessee having Income from any of the heads such as House property , salary/pension, capital gains and other sources and for those assesses who are have foreign assets as such.
3. ITR 2A form is meant only for an Individual as well as HUF assessee who derive income from heads such as salary, pension, income from house property and income from other sources and those assesses who do not have foreign assets.
* Incorrect Bank Account Number and IFSC Code
The bank account number in ITR should in no case be less than nine digits and a valid IFSC code must be specified.
* Incorrect claim of TDS
Taxpayers are required to mention the TDS amount after reconciliation of 16/16 A forms with form 26 AS or you'll have to pay an additional differential income tax.
* Forget Sending ITR V to Income Tax Department
Taxpayers are required to post an ITR V form to income tax department on the address at
Income Tax Department-CPC,
Post Bag No.1,
Electronic City P.O,
Bangalore - 560200,
Karnataka
by regular Indian Post or Speed Post only. This form shall be compulsorily sent within 120 days of the filing of the e-form of income tax return.
Nearly 10% of Taxpayers forget to send ITR V every year.
From 2015-16, the department has introduced a new way of verification under which the taxpayers are not required to send the ITR V form.
* Filing The Income Tax Return without taking effect or considering Interest Payable under sections such as 234A, 234B and 234C
* The assessor shall pay tax under sections 243B and 243C. These are the sections which are related to complete non-payment or less payment of advance income tax than the amount prescribed.
When the Taxpayers file income tax return after the valid date or when the time period has expired and ignored the interest due under section 234A. The taxpayers shall have to pay the interest even if the date has been extended even for a single day, then the interest payable would be @1% per month. If the taxpayer furnishes an Income Tax for the assessment year return beyond the date of 31st August, 2015 then he would be subject to an applicability of interest under section 234A.
Intimation and Rectification.
After the Income Tax is filed, the next process is to process the same which is done by the IT department and after that, an intimation will be generated containing the basic details of revenue and tax. If the details of the ITR filed matches, then there wouldn't be any scope for any action taken against the same , if any error is found, an application can be filed to correct such errors within the period of 4 years starting from the end of the financial year and such a rectification can be done through online.
Don't forget to check Intimation after income tax return filing which will explain that you need to file correction application or not.
* Revising the late filed Income Tax Return
A revised return can be filed within the specified time. Such a mistake can be rectified only when the income declared while filing the ITR doesn't exceed Rs. 5,00,000 and also if it is filed manually.
Foreign Assets, Bank Account, Aadhar Number and Passport Number
The income Tax department has released new ITR forms for the assessment year of 2015-2016 on 22nd June 2015 and the below heads are to filed by the assessee compulsorily such as:
1. Aadhar Number (if held)
2. Passport Number (if held)
* Details of all bank accounts held in India at any time during the previous year (except dormant account)
1. Details of Foreign Assets and Income from any source outside India.
2. Incorrect information in Personal Information Schedule:-
One of the most prominent errors often committed by the assesses are furnishing of wrong details of these things :- D.O.B, TAN No., email addresses, mobile nos., Residential address.
An assesse should understand the fact that:
1. Incorrect TAN: Will not allow him to claim the Tax Deducted at a source.
2. Incorrect Email Address: Will result in non-receipt of all intimations from CPC and other communications.
3. Incorrect Mobile No.: Will result in non-receipt of SMS based Communication.
4. Incorrect Date of Birth: Will lead in Computation of higher taxes in case of senior citizens.
5. False Residential Status: Will result in Computation of higher taxes.
6. Incorrect Aadhar no.: Will not enable Aadhar updation and EVC verification.
7. If there are any claims made of excess in deduction or when the deductions made are claimed more than once: - many cases arise when the tax assesses claim more of the deductions under some sections such as 80,80CCC & 80CCD(1), tax assesses aren't aware of the fact that the maximum amount of the deductions available under the above-specified sections in aggregate cannot exceed aggregate cannot exceed Rs.1,50,000.
There are many such taxpayers who claim deduction under section 80G by assuming it as under the head of donation.
* Claiming Tax without real payment of Self-Assessment Tax
When the Income Tax is paid without paying the whole and original payment of IT, it would result in the payment of interest @ 1% p.a under sections 220 & 221 or as deemed fit by the assessing officer. An unpaid Income Tax along with interest if an intimation is received under the prescribed sections of 234B and 234C.
This article has been contributed by Himanshu Jain, CEO, LegalRaasta, an online portal for GST Software , GST Return Filing , GST Registration , Section 8 Company Registration , Nidhi Company Registration , IEC Registration , FSSAI License, Income Tax Return Filing.
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