Some of the commonly observed tax return filing mistakes –
- Not reporting all the sources of income
- Failing to report income from sources such as – interest savings account, interest on Fixed Deposits (FDs).
- Further, upon change of job, the individual should make sure that he reports the income earned through his previous employer as well.
- Also, any income earned by a minor through investments is also taxable In case you have made investments in your children’s name, keep this in mind while filing your taxes.
- Not paying tax on house property
- Few people assume that there is no income from multiple residential properties and thus there is no tax payable. However, if you own more than one house, you are liable to pay a certain amount as tax, even if you have not earned any income from it or if it is unoccupied.
- Providing incorrect postal and email address
- Not reporting income that is exempt
- Many types of incomes like long-term gains, dividends, etc. are exempt from tax. Although you do not have to pay any taxes on such incomes, it is important to report them.
If I fail to furnish my return within the due date, will I be fined or penalized?
- Rs. 5000 if return is furnished on or before the 31st day of December of the assessment year i.e. for FY 2018-19, assessment year will be 2019-20 and so the relevant date will be 31st dec, 2019.
- Rs. 10,000 in any other case.However, late filing fee shall not exceed Rs. 1000 if the total income of an assessee does not exceed Rs. 5 lakhs