It is necessary to file income tax return for all those citizens of India whose annual income is more than 2.5 lakh rupees. Some terms and conditions are different for senior citizens. In such a situation, if you have not filed your income tax return yet, then do it soon. However, the last date for filing ITR has now been extended. The deadline for filing ITR has been extended till March 15. At the same time, its deadline was till 31 December 2021. Those who filed ITR by 31st December are now in a state of peace. If you have not filed income tax return yet or are going to do so, then you should not make some mistakes even by forgetting. Otherwise, you may have to face some trouble later or even a heavy fine may be imposed. Let us know which mistakes you should avoid…
Do not hide interest on FD and savings account
Interest earned on savings account is also required to be shown in ITR as earnings. Not only this, interest earned on fixed deposits is also taxable under the Income Tax Act. Therefore it is necessary to show this interest as well.
E-verification is also mandatory after filing ITR. E-verification is required to be done within 120 days of filing ITR.
Wrong ITR Form Filling
There are different ITR forms depending on the source of earnings. In such a situation, while filing ITR, you should choose the right income tax return form according to the source of your income.
Not understanding the new and old tax system
The most important thing to note is that in the old tax system, you get deduction and exemption. On the other hand, in the new tax system, you do not get deduction and exemption, but the tax rate is less. Between these two tax systems, you should compare which one is more beneficial for you. Only then file ITR.