Avoid Some Common Mistakes In Income Tax Filing

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Navigating Income Tax Filing in India challenges
even the most conscientious taxpayers between
ever-shifting deadlines, rules, and eligibility
criteria. Simple yet serious slip-ups often
transpire in a rush to complete returns before
looming due dates, stalling refunds and risking
financial penalties. This blog will review the
most frequent Indian Income Tax Return
Filing mistakes below to learn how improving
vigilance, record-keeping, and comprehension of
the latest protocols protects your bottom line
this filing season.
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Before getting into the discussion, if you are
confused and want experts help navigating the
process, reach out to Eazy Startups today. Income
Tax Filing is not a difficult process, and with
the help of Eazy Startups experts, you can even
quicken the process significantly. Contact us
today.
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Income tax deadlines now fall earlier, with
FY22-23 filings due July 31st, 2023. Plus, late
fees now apply immediately after due dates.
Missing these tightened deadlines risks Rs 5000
penalties just for delays. Similarly, employers
must issue Form 16 wage statements earlier than
June 15th. So taxpayers must act quicker,
gathering paperwork from their side to hit filing
cutoffs vs past years. Mark calendars with new
timings. 
Missing Key Deadlines
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Whether filing first returns or repeating annual
submissions, take care in entering identifying
details like legal name, PAN number, date of
birth, address, and mobile numbers, which must
perfectly match Aadhaar cards and PAN records.
Small typos can invalidate entire applications,
freezing refunds awaiting identity confirmation.
Verify data directly from source documents before
filing. 
Errors in Personal Information
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Accepting cash payments for services or earning
rental/investment income often leads to
underpayment if not carefully accounted for under
section 44AD. The tax department expects income
estimates to match sector profitability norms.
So, list all revenue sources rigorously.
Similarly, salaried taxpayers must report every
employer providing Form 16 statements to avoid
processing delays when reported wages differ from
26AS totals. 
Unreported or Underreported Income
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Filers now choose between an older vs newer tax
regime each year, but selecting improperly
leads to miscalculations. Those sticking with
past systems need diligent paperwork backing all
conventional deductions. But picking the new
regime when the old format promises bigger
refunds leaves money unclaimed. Model both ways
before filing to maximize benefits this season. 
Inaccurate Tax Regime Selection
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New legislation now mandates declaring overseas
assets like offshore accounts, properties abroad,
equity investments outside India, and more if
valued over Rs 50 lakhs. Failing disclosure risks
major penalties plus prosecution. So carefully
detail all assets beyond Indian borders under
Schedule FA, providing all specifics mandated to
avoid issues with tax authorities. 
Non-Disclosure of Foreign Assets
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Correctly assessing the tax owed each year trips
up many filers, crunching numbers on their own
versus relying on CA consultations. Missing
eligible deductions, misinterpreting exemption
limits or applying outdated rates all yield
incorrect tax dues payable to the department.
Countercheck all computations before accepting
liabilities to prevent costly revisions later. 
Errors Computing Tax Liability
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Indias massive digitization push aims for
predominantly e-filing tax returns backed by
digital signatures vs traditional paper Income
Tax Filing. This method expedites processing but
only when properly executed from start to finish.
Uploading incomplete forms and missing addendums
like Schedule 80G for donations with expired
digital signatures suspends returns awaiting
corrections. 
Submission Errors
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Final Note
Income tax rules evolve continually in India,
demanding vigilant adherence from taxpayers
seeking rapid refunds without penalties. However,
avoiding common mistakes while filing taxes
ensures smooth sailing through filing season.
Seeking help from expert professionals
while Income Tax Filing also provides expertise
steering around errors invading bottom lines this
year. Contact Eazy Startups for the best help
with Income Tax Return Filing.
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