It is very important to match the three documents correctly before filing ITR. In case of even the slightest discrepancy or concealment of income, an automatic tax notice may come directly.
ITR Filing Mistakes: If you are going to file your Income Tax Return (ITR) this year, then wait. Before filling any information in a hurry, you have to keep some very important things in mind. Nowadays the system of Income Tax Department has become completely automatic. This means that if even the slightest discrepancy is found in your claims and the data available with the department, a tax notice will be sent directly to your phone or email without any delay. Tax experts believe that nowadays most of the notices come not because of hiding income, but because of mismatch in data. Let us know which are those 3 papers, which are most important for you to match with each other…
Check these 3 documents before filing ITR
AIS (Annual Information Statement)
Many information like your earnings, bank interest, dividends, share transactions, high-value transactions are visible in AIS. Many times people forget to mention the small interest or dividend received from the bank. This mistake can become the reason for notice later.
Form 26AS
This is a record of your tax credit. TDS, TCS and other tax entries are visible in it. If there is a difference between the information filled in your ITR and the data appearing in Form 26AS, the system can catch it immediately.
TIS (Tax Information Statement)
This is a shorter and cleaner form of AIS, which makes tax calculation easier. This is a kind of summary of your tax data. Before filling ITR, please check this also, so that no entry is missed.
Even a small mistake in ITR can become a big problem
Many people think that there is no need to declare bank interest or small TDS entry of a few hundred rupees. But now the system of Income Tax Department has become quite advanced. If there is a discrepancy between the information given in your ITR and the department’s records, an automatic alert or notice may come.
What to do if you see a fault in AIS?
Sometimes wrong or duplicate entries may also appear in AIS. There is no need to panic in such a situation. You can report incorrect information using the feedback option available on the Income Tax Portal. So instead of relying only on AIS, check your bank statements, investment records and other documents also.
Do not commit these 4 common mistakes while filing ITR
Choosing the wrong ITR form
According to tax experts, taxpayers often commit some mistakes unknowingly, which later become a problem for them. One such mistake is choosing the wrong ITR form. If you are employed then usually you fill ITR-1. But if you have earned from the stock market or mutual funds, or have any property abroad, then ITR-2 or ITR-3 form will be right for you. Selecting the wrong form will render your return ‘defective’ (invalid).
hiding salary from old job
If you have changed jobs in the last year, then you will have to show the total salary by combining Form 16 received from both the companies (old and new). By showing only the salary of the last company, huge tax liability is hidden, which is easily caught by the tax department.
Incomplete information about F&O and stock market
If you do futures and options (F&O) or intra-day trading, then according to the new rules, you will have to account for every penny of the profit-loss statement. This time, separate columns have been added in the new ITR form for F&O, and it is now mandatory for such employed people to fill ITR-3 form.
Not doing verification after filing return
Many people think that once the online form is submitted the work is over. It’s not like that! After submitting the ITR, it is necessary to e-verify it within 30 days. If you do not do this, your return will be considered canceled and you will not be able to get the benefits of the old tax system.