{"id":122,"date":"2018-06-13T10:31:00","date_gmt":"2018-06-13T10:31:00","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=122"},"modified":"2020-08-21T09:39:55","modified_gmt":"2020-08-21T09:39:55","slug":"9-tax-mistakes-should-never-make","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/","title":{"rendered":"9 Common Tax Mistakes You Should Never Make"},"content":{"rendered":"\n<div class=\"wp-block-image size-medium wp-image-685\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"451\" height=\"300\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2018\/06\/9-Common-Tax-Mistakes-You-Should-Never-Make-451x300.jpeg\" alt=\"9 Common Tax Mistakes You Should Never Make\" class=\"wp-image-685\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2018\/06\/9-Common-Tax-Mistakes-You-Should-Never-Make-451x300.jpeg 451w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2018\/06\/9-Common-Tax-Mistakes-You-Should-Never-Make.jpeg 640w\" sizes=\"auto, (max-width: 451px) 100vw, 451px\" \/><figcaption><em>9 Common Tax Mistakes You Should Never Make<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Filing tax returns can be an overwhelming task if done at the last minute.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When the income tax deadline is just around the corner, most of us start scrambling in search of bank statements, receipts, and other documents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Personal finance experts suggest that the more you rush up the process, the higher are the chances of making mistakes. These mistakes can result in refund delays, penalties, and even the risk of a tax audit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are filing your tax returns in the eleventh hour, make sure that you avoid these 9 common mistakes-<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#1_Filing_ITR_Using_the_Wrong_Form\" >1. Filing ITR Using the Wrong&nbsp;Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#2_Not_reporting_interest_incomes\" >2. Not reporting interest&nbsp;incomes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#3_Not_filing_income_tax_returns\" >3. Not filing income tax&nbsp;returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#4_Not_clubbing_incomes\" >4. Not clubbing&nbsp;incomes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#5_Not_reporting_income_from_the_last_job\" >5. Not reporting income from the last&nbsp;job<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#6_Not_reporting_tax-free_incomes\" >6. Not reporting tax-free&nbsp;incomes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#7_Not_reporting_all_bank_accounts\" >7. Not reporting all bank&nbsp;accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#8_Getting_basic_details_wrong\" >8. Getting basic details&nbsp;wrong<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/9-tax-mistakes-should-never-make\/#9_Mistakes_in_claiming_deductions_under_section_80C\" >9. Mistakes in claiming deductions under section&nbsp;80C<\/a><\/li><\/ul><\/nav><\/div>\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Filing_ITR_Using_the_Wrong_Form\"><\/span>1. Filing ITR Using the Wrong&nbsp;Form<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">There are 6 different ITR forms for individuals and 3 for firms and companies. As per the tax laws, you need to report all the income sources and file the returns using the right form applicable to you. If you use a wrong form to file your returns, the tax department will treat your returns as \u2018defective\u2019 and you\u2019ll be required to file ITR again with the right form.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\">Get Instant Loan<\/a><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Not_reporting_interest_incomes\"><\/span><strong>2. Not reporting interest&nbsp;incomes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Several people do not consider the interest they have earned from different sources when filing ITR. You should know that only interest up to Rs. 10,000 earned from a Savings Account is exempt from taxes and no such rule applies to Fixed Deposits. It is possible that collectively, the interest from Savings Account might be more than Rs. 10,000. So, make sure that you do report all the interest you\u2019ve earned when filing ITR.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Not_filing_income_tax_returns\"><\/span>3. Not filing income tax&nbsp;returns<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Not filing tax returns can result in a jail term of up to 7 years. While in most of the cases, the tax department only issues a notice which if neglected would result in a penalty, prosecution is a possibility. If you have missed the ITR filing deadline, you can file a Condonation delay request which the tax department might accept in some cases.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Not_clubbing_incomes\"><\/span>4. Not clubbing&nbsp;incomes<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">As per the income clubbing rule, the income of specified persons like your spouse, minor child, etc. should be added to your income before calculating the total income and tax payable. If you do not add these incomes, you\u2019ll be required to pay the remaining tax on this additional income along with interest. It can also result in a penalty for misreporting or under-reporting your income.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/nbfcs-vs-banks-business-loan-india\/\">Why Choose NBFCS Over Banks For A Business Loan In India<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Not_reporting_income_from_the_last_job\"><\/span>5. Not reporting income from the last&nbsp;job<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">People regularly change jobs nowadays but they often forget to consider the income from their previous jobs when filing ITR. If you do not report the income from your previous jobs, your TDS certificates will reflect the error. The penalty for this is similar to the penalty of not clubbing your income.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Not_reporting_tax-free_incomes\"><\/span>6. Not reporting tax-free&nbsp;incomes<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Even if the income is exempt under a section of the tax law, you still need to report it when filing ITR. All the exempted incomes should be reported under the \u2018Exempted Income\u2019 section of the returns form.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Not_reporting_all_bank_accounts\"><\/span>7. Not reporting all bank&nbsp;accounts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In the past, taxpayers were only required to provide details of the bank account in which they wanted to receive the tax refund. However, from FY2015\u201316, you need to report all your bank accounts except for the dormant accounts. Not reporting the bank accounts can result in penalties.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Getting_basic_details_wrong\"><\/span>8. Getting basic details&nbsp;wrong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Double-check all the personal details like email address, bank account details, mobile number, etc. when filing ITR. Any error in the bank account details can delay your TDS refund and any kind of mistake in address or email address would mean that you might miss important notices or acknowledgement from the tax department.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/reapplying-denied-business-loan\/\">Business Loan Denied? Here\u2019s What You Should Do Before Reapplying<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Mistakes_in_claiming_deductions_under_section_80C\"><\/span>9. Mistakes in claiming deductions under section&nbsp;80C<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Some people believe that the EPF contribution of the employers should be included to claim section 80C benefits. However, this is incorrect. Moreover, only principal amount of a housing loan repaid can be considered under section 80C. Similarly, there are several other deductions which you should take care of when claiming 80C benefits as they can result in rejection and tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any kind of error when filing ITR can result in a lot of problems, penalties, and in some cases, even jail term. Never wait for the last date to file the returns and make sure that you avoid the mistakes mentioned above to file the return correctly on time.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\"><a href=\"https:\/\/www.indifi.com\">Apply For Business Loans Online<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Filing tax returns can be an overwhelming task if done at the last minute. When the income tax deadline is just around the corner, most of us start scrambling in search of bank statements, receipts, and other documents. Personal finance experts suggest that the more you rush up the process, the higher are the chances [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[12,23,53,14],"class_list":["post-122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-loans","tag-loans","tag-taxes","tag-unsecured-business-loans"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=122"}],"version-history":[{"count":5,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/122\/revisions"}],"predecessor-version":[{"id":3606,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/122\/revisions\/3606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/685"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}