If
you don’t want to land in trouble with the tax department, hiring a
professional to file your income tax returns is highly advisable. You might
have to serve the notice period or get penalised just because of a minor
mistake.
A
majority of the chartered accountants in Kolkata have years of industry
presence. They know the common mistakes people generally make while filing
income tax returns. Their complete focus is on preventing you from landing in
any sort of trouble with the income tax department. With the right professional
by your side, you don’t have to serve a tax notice ever. Instead of waiting for
the ITR filing deadline to arrive, hire professionals who will file the return
with utmost care.
4 Common Mistakes Taxpayers Make When Filing Income
Tax Returns In Kolkata
·
Choosing
The Wrong Form
Unless
you have prior experience in filing ITR, you might end up choosing the wrong
form. The return will be considered to be defective and you have to file a
revised ITR. This should be done within 15 days from the date you have received
the intimation. If you exceed the time limit, the return will be considered
invalid. A businessman will have to pay interest and face numerous penalties if
they fail to file ITR. This is why choosing the right form is more important
than you think.
·
Failing
To File Income Tax Returns
Some
people don’t file their tax returns as their LTCG or long-term capital gains
are tax-exempt and their gross total income is less than the tax-exempt income level.
There have been some amendments in section 139 (1) of the Act. Now you have to
file ITR if your gross total income is more than the minimum exemption level.
If you are not sure whether you have to file income tax returns or not, get in
touch with an experienced accountant. They will help you calculate your LTCG
and gross total income.
·
Not
Declaring Rent
If
you own a house other than the one in which you are currently staying, the
expected rent should be included in your gross total income even if it is lying
vacant. Accountants filing income tax returns ensure that both
deemed rent and expected rent are declared in your income. The notional rental
will get added to your income and you have to pay some taxes. Negligence to
include the rents will lead to penalties.
·
Hiding
Interest Incomes
If
you are reporting the income you have received in the previous financial year,
make sure you include your interest incomes as well. This should include the
interest received from recurring deposits, fixed deposits and savings bank
account. This is necessary because the interest received from recurring or
fixed deposits are fully taxable. There is some tax relief for interest earned
from savings bank account.
