Fumble no more, folks! Fearlessly fix your tax woes with flair!
Hey tax enthusiasts! Welcome to another tax-tackling newsletter!
Tax season can be a bit overwhelming, especially when it comes to understanding and filling out all those forms.
Sometimes, despite our best efforts, errors can slip through the cracks. You might have entered the wrong number, missed a deduction, or forgotten to include important details.
But fear not! The good news is that mistakes on your ITR can be fixed, and that's exactly what we're here to help you with. No more stress, just clear, concise steps to become a savvy tax-filer!
Common Mistakes in ITR Filing?
Filing Income Tax Return (ITR) is essential, but errors can cause complications and penalties. Common mistakes include incorrect personal information, errors in income reporting, overlooking deductions, and mismatches in Form 26AS, AIS and ITR.
Here is a list of common mistakes in ITR filing:
● Selection of incorrect ITR form
● Mentioning of Incorrect personal information
● Not disclosing all sources of income.
● Not reporting or under reporting of interest incomes on savings accounts or fixed deposits, or any other income.
● Not reporting salary income from all the employers
● Differences in Form 26AS and Form 16
● Missing out on some credits in the bank statements
● Not disclosing exempt income
● Claiming excess deductions or exemptions
● Ignoring TDS (Tax Deducted at Source)
● Missing out on claiming eligible deductions
● Failure to report foreign assets and income
● Failure to report Directorships in companies
● Missing out reporting of unlisted equity shares
How to correct mistakes in ITR filing?
Filing a Revised Return: A revised return is a way to correct errors in the original Income Tax Return (ITR) . It allows you to update or rectify any mistakes related to income, deductions, or other details. It is especially useful when you discover errors after filing the return or receive additional information that impacts your tax liability or require disclosure in your ITR.
A. What is the time limit for filing a revised ITR?
As per Section 139(5) of the Income Tax Act, a revised return can be filed before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
For instance, if the Income Tax Return relates to Financial Year 2022-2023, the corresponding Assessment Year would be 2023-24. Now, you have the opportunity to file a revised return until December 31, 2023, i.e, 3 months before March 31, 2024.
Kindly note that a belated return, i.e., return filed after the due date can also be revised.
Step-by-Step Instructions for Filing a Revised Return:
● Visit the e-filing website of the Income Tax Department at https://www.incometax.gov.in/iec/foportal/ .
● Log in to your account with your user ID and password.
● Access the 'E-File' section in the dashboard, then opt for 'Income Tax Return'. From the dropdown, pick "File Income Tax Return."
Another option is to directly choose the 'File Revised Return' option under the ‘Assessment Year Filing’ on the dashboard itself.
● Now, select Assessment year and ‘online’ as the mode of filing.
● Click on Start New filling if you do not have any draft saved.
● Further, select your status.
● Next, choose ITR form. You can even choose an ITR form which is different from the one selected for original filing in case the original form was incorrect.
● Now, in the new form, mention correct details to rectify all the issues identified in the original return. Post correction, submit the return and E-Verify your revised return within 30 days of filing.
Filing a Rectification Request: Different from filing a revised return, a rectification request is used to correct only specific errors that occur during the processing of your ITR by the Centralized Processing Centre (CPC). It is filed when mistakes are apparent from the records and can't be corrected through a revised return.
A rectification request can be filed only for the ITRs which are already processed by Centralized Processing Centre. If upon rectifying an error, there is a change in the Income – a rectification request should not be filed. In this case, a Revised Income Tax Return should be filed.
Suitable Scenarios for Rectification Request: Use a rectification request when errors
are related to total tax liability, gross total income, total deductions, or personal
information, which are observed from the CPC’s processing of your return.
Step-by-Step Instructions for Filing a Rectification Request:
● Log in to the Income Tax e-filing portal using your credentials.
● Select the “Services” tab and choose “Rectification” option from the dropdown.
● Click on the “New Request” button.
● Select “Income Tax” as the option under “order passed under” and select the relevant Assessment Year for which rectification is to be filed.
● Now, three methods would appear for rectification of the return:
First option is to ‘Reprocess the Return’. You can simply submit the request and then E-Verify.
Second option is ‘Tax Credit Mismatch Correction’ option. It will auto-populate all the tax or TDS schedules as per the processed return. You can edit or delete the schedule details. Next click on the ‘Continue’ button and E-Verify.
Third option is ‘Return data correction’. You can rectify some of the information in the return by uploading the rectification XML/JSON file under this option.
However, please not that Rectification request cannot be submitted for the following:
i. To claim additional deductions.
ii. To claim losses which were unreported in the original return
iii. To claim additional Tax credit or claim a missed-out tax payment challan or claim tax refund.
Seeking Help from Tax Professionals
When it comes to navigating complex mistakes in your ITR, seeking help from tax professionals is a smart move.
At JJ Tax, our team of experts ensures accurate corrections, a deep understanding of tax laws, and full compliance with regulations. Trust our seasoned professionals to guide you through the process of filing revised returns or rectification requests, reducing the risk of errors or penalties.
Embrace a smoother and stress-free experience with JJ Tax Experts by your side!
Fix those ITR slips and take a tax-saving trip!
Happy tax-filing, we hope those numbers add up to a smile!