The deadline to file your income tax return (ITR) for the financial year 2019-20 is just two weeks away. Earlier, the date was extended to November 30, 2020, to offer some relief to taxpayers amidst the on-going coronavirus pandemic. If you haven’t yet filed your returns, now is time to get going. 

We here at OPOYI have got you covered and are listing out the commonly-made mistakes to avoid while filing Income Tax returns:

Choosing the wrong ITR form

ITR forms are based on different sources or combination of incomes. While ITR-1 (SAHAJ) is applicable only for resident individuals having income up to Rs 50 lakh and only for those having income from salary, one house property and other sources, ITR-3 is applicable for those whose income generates from a business.

ITR-4 (SUGAM) is for the presumptive method of taxation such as for freelancers. Filing the wrong form results in a notice from the income tax department.

Not reporting all income sources

While it is most basic, yet the most error-prone area. It is absolutely mandatory to mention all sources of income while filing ITR, failing to do so will then result in discrepancy reflecting in the TDS certificate (Form 16) and Form 26AS. It often attracts additional payment of tax dues.

Failure to declare income from capital gains

It is important to provide every detail of the sale of capital assets, purchase and expenses to calculate the capital gain while filing ITR. 

Also Read: COVID-19: Deadline to file Income Tax Returns for 2019-20 extended till November 30

Excluding minor’s income

Any investments made in the tax payer’s minor child’s name should be mentioned while filing and is usually clubbed with the parent whose income is higher.

Not including all bank accounts

It is mandatory for a taxpayer to declare all their active bank accounts in India while filing ITR. They have the option to choose the bank account in which they want to get their income tax refund credited.