Filling of wrong ITR form should be avoided

Filing ITR has become much easier now by going online, in spite of this, if you are
facing any problem then you should take help of a chartered accountant. If you
come under the tax net and you have not filed ITR, then the Income Tax
Department can impose a fine of up to Rs 5000.

You have to fill the income tax return form very carefully. For your convenience,
we are talking about five common mistakes that people often make. By avoiding
such mistakes, you can fill the return form correctly.

1. Filling of wrong ITR form

Tax and investment expert Balwant Jain explains, 'First of all you should know
which ITR form you have to fill. If the wrong form is filled, then the entire exercise
will be of no use. Most people have to fill ITR-1, which is called Sahaj. If you are an
individual taxpayer whose total annual income is less than Rs 50 lakh (from all
sources), then you have to fill this form. But if you have an annual income of more
than 50 lakh rupees, more than one housing property, a company has
directorship, income from capital gains, income from abroad, then you have to fill
ITR-2. Individuals or Hindu Undivided Families (HUF), earning income from a
business or profession, have to file ITR-3.

2. Not to mention income from other sources

Apart from the main income of salary or business, you must also tell the income
from other sources. Saving bank interest is exempt from taxable income up to Rs
10,000 for ordinary people and up to 50,000 for senior citizens, but you have to
claim deduction by showing this information in income. If TDS is deducted on FD,
then you should also inform about it. If you hide the information, then penalty
can also be incurred. This can range from 50 to 200 percent of tax evasion.
The income of minor children must also be given. Minor is an active income like
income from a TV show will be taxable for the child, but it is a passive income,
such as if there is income from an investment in his name, then it is tax free up to
Rs 1500 annually, more than the mother or Will be added to the father's income
(whoever has more income).

People often forget to tell capital gains from mutual funds or shares, while filling
the details of capital gains, salaried people make more mistakes, because their
information seems too complicated for them. So if you have income from capital
gains then the help of a professional CA must be taken.

3. Not to give more than one house Property information

If there is more than one house, you cannot use the ITR-1 form. You have to fill
ITR-2. If there is a self occupation of more than one house, then according to the
rule of the last year, only one house will be exempt, for other houses, rental
income will be given at the market rate, on which 30% deduction is also given.

4. Do not update contact details

It is very important that you update your email ID and phone number. Now-a-
days the Income Tax department makes contact only through e-mail or phone.
Keep in mind that do not give the email ID or phone number received by the
employer, but rather give your personal email or phone number, because your
personal contact will work only if you leave the job.

5. Not giving details of all bank accounts

All the bank account details should be given in the income tax return. If you fill
the details in the form of ITR, then fill the bank account very carefully in it,
because nowadays refunds come online directly in the account itself. Therefore,
in the ITR, details have to be given in which account you want the refund. If you
make a mistake, there will be a lot of problem in processing it again.