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Useful articles for your finance management by our team of experts

Common Mistakes While E-Filing Tax Returns

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mistakes while efiling tax returns

Electronic Filing or E-filing of Income tax returns is mandatory for Individuals having taxable income exceeding INR 5 lakhs. It’s important that there are zero errors while e-filing and all mandatory columns are filled properly, as erroneous returns will be classified as defective or invalid based on the severity of mistake. If you are going to file your income tax returns electronically for the first time, it is crucial that you take certain precautions so that your tax return is not rendered defective or invalid.

Most common mistakes while e-filing tax returns are related to data and behavioural aspects. Through this article we will try to address these mistakes, their implications and steps to avoid them.

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Behavioural errors

As humans we do not tend to move unless we are neck deep in water. In case of e-filing also, we follow the same instinct and wait till 30th of July to start the process. There are many who will be in the waiting list even on 31st and when they start the process they will start cribbing about the system. Government has made the tax return filing process very easy and if you avoid last hour rush, 99% of the errors will automatically get fixed. To avoid this last hour rush, it’s recommended to e-file your returns one month in advance.

Failing to send ITR-V before deadline

Your income tax return is designated legally filed only when you send a signed copy of the ITR-V form to Income tax Bangalore office. Once you complete the e-filing and submit the return, you are informed about the same, but again the lethargic psychology comes into picture and we start counting the 120 days available at hand. Most of the time, we forget and simply do not send it leading to invalidity of return. To avoid this situation make it a rule to send the ITR-V the next day you file the return. It only takes an hour to post it, so why wait for 120 days.

Data Errors

These are the most common form of mistakes while e-filing tax returns. They can be primarily classified into personal data errors and financial data errors.

Mistakes in Personal Data

One needs to register on income tax website before he becomes eligible for e-filing. You need to create a user id, which is your PAN. While e-filing tax returns one needs to furnish personal details like mailing address, DOB, status, email, mobile number. One should ensure that these details are correctly filled in the designated columns. Senior citizens should be careful while filling their date of birth, as any mistake might put them into higher tax bracket.

Mistakes in filling Banking Data

Furnishing bank account details is mandatory even if you are not liable for refund (check refund status online). Make sure the account number and the name in the bank account match and IFSC code and MICR code, account number etc are accurate.

Mistakes in filling Financial Data

While e-filing, one should ensure that the salary details do not contradict tax deducted at source as this discrepancy is one of the major reasons for rejection of returns. Interest income from fixed deposits and income from other sources should be correctly mentioned. Income from house property should also be clearly stated together with short-term capital gains. Income tax from long term capital gains should be mentioned separately even though they are tax exempt. There is a lot of other financial data which needs to be mentioned properly and it’s recommended to consult a tax advisor in case of doubt. One also needs to be careful about the income tax form he is picking for filing the return, as there are many for different cases.

Avoiding the mistakes

Although Government has tried to make e-filing through Income Tax Website easy, you might feel uncomfortable as there are a number of data columns which need to be filled. If you are confused, you can seek help from professional tax consulting websites with auto check e-filing software installed. This software makes the e-filing journey easy, error free and less time consuming at a very low cost.

With all these gyan, I am sure you are curious to know what is the outstanding amount that is payable by you towards your taxes. We at Investment Yogi have created Income tax calculator solely for your benefit so that you can have an idea about the tax payable by you at your convenience.

 

Note: After filing the IT return from IT Website, you will receive the following message – “This is a system generated e-mail and please do not reply. Add donotreply@incometaxindia.gov.in to your white list / safe sender list. Else, your mailbox filter or ISP (Internet Service Provider) may stop you from receiving e-mails”. To add the above mail id to the white list, follow the below steps:

Step 1: In Gmail, click the “Create a Filter” link which is placed just next to the search box.

Step 2: In the From: field, enter the email addresses, domain names or even actual names of people who you would


like to whitelist. You can separate multiple entries using OR (in Caps) or with the bar (|) sign.

Step 3: Once your filter is ready, click Next and select “Never Send it to Spam.”

  • Vinod

    Very practical and necessary information indeed

  • Venugopal Reddy

    Hi,

    My company is merged with another company in this financial year and we have been issued one form-16 with two TAN numbers in the form. But in TRACES it is showing TDS of both the companies. How to efile in this case ?

    • Suresh

      Hi Venu,

      This is a mistake from Employer or they need to check what is happening at payroll/finance dept. Technically this merger results, you have worked for two comapnies (that’s why two TDS certificates). Now your employer needs to provide two form 16 for both the employers (old company and new company). Filing return will be difficult and dubious with once form 16 where you have worked for two companies.

  • Ramu

    While filing tax return, I have paid self assessment tax with incorrect assessment year. How do I get this corrected?

    • yogiexpert

      Incorrect assessment year can be corrected by filing revised returns. However, if you file returns after due date, you will not be allowed to file revised returns.

      • Suresh

        Dear Yogi, here Mr. Ramu indicated that he paid tax against a wrong FY, not about filing returns.

        Hi Ramu, This can be corrected with the help of bank from which account it was paid (as per dept, its bank’s responsibility to help in this matter). Alternatively you can write a letter with supporting document to IT dept or visit there.

  • Mr. Arvind Jadhav

    Hello Yogi,
    I am NRI and I have some savings in India in Fixed Deposits in Bank. But the Interest earned does not exceed Rs 5 lakhs over the year . I am 70 year old retired person.
    Do you think I need to File IT-Return. I have filled due Bank forms for take care of my
    Income taxes and they do . How am I going to know that they are deducting right income tax on my savings Interests, PLEASE ADVISE, Thanks

    • Av Suresh

      Income tax exemption limit is Rs. 2.5 lakh for senior citizens and Rs. 5 lakh for super senior citizens. Hence, if the interest on your FDs exceeds the limit of Rs. 2.5 lakh, TDS will be applicable. You can calculate income tax on your income earned in India and thereby cross check with the TDS deducted by the bank. If TDS deducted is more, you can apply for refund at the time of filing returns.

  • raman

    hello yogi,
    i forget to post ITR-V for the last year
    now what should i do…??

  • shyamala

    hi,,
    i have made a mistake in filling assessment year,n i re-filled ITR wt changed assessment year, is it ok

    • Av Suresh

      If you make any mistakes, you can file a revised return. Just select the option ‘revised’ when you file again.

  • sandeep0214

    i just completed my medical post graduation in july.during my pg days i used to get stipend from 23,000-29,000 depending on the year of post graduation.do i need to file my income . i have been having a pan card for the past 6 years. so far i havent filed anything and wish to buy a car with loan now.everyone is asking for 2 yrs it returns.is stipend taxable? si say its not.for me no tds has been deducted.whats the best option i have got

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