9 Photos . Updated: 27 Jul 2023, 10:57 AM IST
Edited By Fareha Naaz
If you plan to file your tax return on your own, i… more If you plan to file your tax return on your own, it’s essential to have a clear understanding of tax rules and avoid common mistakes that could lead to notices from the tax department. Here are eight ITR filing mistakes you should avoid.
1/9 Not verifying Form 26AS and AIS: Ensure to check your Form 26AS and Annual Information Statement (AIS) on the tax portal. Verify that all your income, TDS, and TCS payments are correctly mentioned.
2/9 Not including ‘other income’ from interest, dividends, and capital gains: Don’t overlook reporting income from sources like interest, dividends, and capital gains on stocks and funds. These incomes are listed in the AIS, so they are visible to the tax department.
3/9 Not including capital gains and losses: Calculating capital gains doesn’t require complex paperwork. Obtain a capital gains statement from your broker or mutual fund clearing house. (Photo via Pixabay)
4/9 Missing exemptions: Be aware of the exemptions available to you. For instance, savings bank interest of up to Rs. 10,000 is exempt under Section 80TTA, and senior citizens can get a higher exemption of Rs. 50,000 under Section 80TTB. (iStock)
5/9 Not reporting foreign income and assets: Report all foreign assets in your tax return, including shares of overseas companies, income from foreign companies, and funds in foreign bank accounts.
6/9 Not reporting losses: If you have incurred losses from investments (funds, stocks, F&O), make sure to report them in your tax return. You can set off these losses against other gains and carry them forward for up to eight financial years.
7/9 Missing deductible expenses: Claim eligible tax deductions for expenses like preventive health checkups (up to Rs. 5,000 under Section 80D), medical expenses for senior citizens, and certain illnesses and disabilities.
8/9 Clubbing of investments done in the name of a spouse or child below 18 years: Remember that income from investments in the name of a child below 18 years is clubbed with that of the parent. Similarly, income from money gifted to a spouse is also to be clubbed with the giver’s income.
9/9 Don’t miss the deadline of 31 July
