These are the 5 common mistakes you must avoid as the ITR deadline approaches

The deadline for submitting income tax returns (ITR) in order to avoid fines is July 31. The ITR forms for about 4 crore taxpayers have already been completed. According to the Income Tax department, 5.80 crore people submitted ITRs last year. Additionally, approximately 2 crore taxpayers have not yet submitted their ITR for this year.

The taxpayers are expected to submit correct information on their income sources and assets for tax savings while filling out the forms. Sometimes, tax payers rush through the form filling process and make certain typical mistakes that might have a negative financial and legal impact. Let’s look at some of the most typical errors you should avoid making while completing your ITR this year:

Do not withhold information.

It is usually advised to be completely transparent about your income, tax deductions, and exemption claims. It’s crucial that you pay attention to the financial year and not the assessment year. It is crucial to include the interest earned from each savings account if you have two. The Income Tax Department may send you a notice if you forget to mention this.

International Investing

The overseas investments, such as shares, debentures, life insurance, interest income, capital gains, or dividends, must be mentioned. You must provide every information; else, the department can give you a notice. Any immovable assets, such as homes or other capital assets, that are located overseas should also be stated.

Account PPF

When completing ITR forms, it is also necessary to include any interest or money received from a Public Provident Fund (PPF) account. A separate part of the form is designated for listing exempted revenues, such as PPF.

not pooling earnings

If you have children or a spouse, you must combine your income with theirs. Even if you get interest from an account with your kid’s name after it (for example, an FD account), you must still fill out the ITR form if your child is above 18 and has a source of income that must be included in the form.

Cite your investing activities

Even if the majority of the income from investments is tax-free, it must still be reported on the ITR form. If you include all of the interest on your assets, you can be eligible for a tax break.