Filing an income tax return could be a complex process. It would entail several aspects in the process. Rest assured that filing ITR has been deemed of great importance for taxpayers. All must file tax with income falling under the tax bracket. Only the exempted income groups would not be required to file ITR. However, they could voluntarily file the income tax return to act as proof of income. Consider hiring a tax refund service San Antonio to file your ITR.
You could make the most of several benefits when filing ITR. However, a few mistakes could result in severe complications inclusive of huge penalties.
Let us delve into some of the common errors seen when filing an income tax return.
- Choosing an incorrect form
Choosing an incorrect form while filing your tax returns could put you at risk. While filing the tax return, consider choosing the correct form. It would be based on your income category. By choosing the wrong form, you may not report all the information, and the income tax department could issue a notice for under-reported income.
- Choosing a wrong assessment year
Consider mentioning the correct assessment year when filing your income tax return. People would often be confused about the assessment year and financial year. It could lead to wrong income tax returns whereby resulting in penalties.
- Incorrect personal duties
It would be imperative to go through your details such as name, email id, postal address, etc. These details should be accurate in the form.
- Mentioning all sources of income
It is compulsory to report income from all kinds of sources inclusive of saving account income, rental income, returns from fixed deposits, etc. Regardless of your income slab, it is compulsory to report income from all sources. Any discrepancy in your income could result in receiving notice from the IRS.
- Claiming fake deductions
Most taxpayers tend to claim fake deductions. They would inflate the existing deduction for reducing their income tax liability. Filing of necessary information accurately to the best of your knowledge has been deemed mandatory. Rest assured that wrong reporting could result in penalties.
- Failing to file revised return
If you discover some error after filing your tax, consider rectifying your mistakes and file a revised return. It could safeguard you from tax problems.
ITR filing is mandatory every year with appropriate and complete information. Income tax department could according to the provisions of the rules and laws governing income tax in your region.