How to Avoid Some Common Errors in Filing Income Tax Return
Most taxpayers file their income tax return at the last moment for which errors are bound to take place. The following are the ways to avoid them.
1. Give your correct postal and email address:
Most of the required information is communicated by the income tax department through email or registered letter; as such the details are to be recorded correctly before filing the return. A small mistake in giving details could prohibit you from receiving urgent notifications. So it is necessary to carefully check your postal and email address at the time of filing your income tax return.
2. Do not ignore income from other sources:
One should always declare his total income including income from other sources. It might be an income from sale of property or from dividends received. All the details of such income are to be filled in the prescribed forms.
3. Pick up the correct form:
There are total five forms for different kinds of incomes. One has to choose the form which is applicable to him. Choosing a wrong form will create confusion as to his nature of income itself.
4. Do not sign a blank form:
Many people entrust their lawyers for filing return and sign on blank forms for doing so. On should always go through the contents of a form before signing it. Leaving a blank form in return might put him into trouble.
5. Do not avoid paying tax on multiple properties:
Many people have a misconception that they do not require to pay tax from multiple residential properties, but it is not so. If you are the owner of more than one residential property, you have to pay a certain amount as tax, even if you have no regular income from. You have to pay tax even if the house is an empty one. Tax is payable for the house where you reside as well as for all other houses owned by you.
6. Do not forget to declare your income which is exempt:
Many kinds of incomes such as long-term gains, dividends, etc. are not taxable. Though one does not need to pay taxes for such incomes, one has to declare them. One might not have the knowledge that the investment company sends the details to the income tax department.
7. Carefully check the form before filing:
Whether return is filed manually or online, errors are most likely to take place. One should definitely check the filled-up form for the purpose of avoiding errors. Even in case you have entrusted a tax consultant or accountant to fill the form on your behalf, you should obviously check the form for authenticating the truthfulness of the information stated in them.