Special Offer For Practicing Chartered Accountant
Special Offer For Practicing Chartered Accountant
The filing of Income Tax Returns (ITRs) is an annual task for taxpayers in India, yet many make errors that can cause a penalty, delay in refund, or scrutiny from the Income Tax Department.
Whether due to rush, wrong data entry, or lack of knowledge of peculiar requirements, the mistakes themselves can complicate the process.
Luckily, in light of all the developments in technology, ITR filing software such as EasyOffice Software can simplify the matter entirely and make sure that the entire process is Hassle-free, accurate, and Compliant.
Let’s understand what kind of common mistakes can be avoided usually happens and how they can be resolved through the ITR filing software selected.
One of the most frequent mistakes taxpayers make is choosing the incorrect ITR form. The choice depends on the nature of income and the taxpayer's category. Filing an incorrect form may lead to the return being marked as defective and requiring rectification in a set time frame.
For instance,
• ITR-1 applies to salaried persons with income less than ₹50 lakh and no capital gains.
• ITR-3 will be used for the individuals who earn income from business or profession.
How software helps: EasyOffice Software auto-generates Form ITR 1 to ITR 7, in both the paper and electronic form based on the user's sources of income and financial specifics, thus minimizing error possibilities.
Taxpayers should be careful when quoting details such as date of birth, bank details, or address. Even slight incorrections of important details can lead to complications in a filing. Double-check the details with your PAN. Make sure to provide the right address, number, and email to avoid further confusion.
How software helps: By fetching pre-verified details from government databases (Pre-fill JSON Import), ITR filing software prevents taxpayers from entering incorrect information.
Many taxpayers confuse the financial year (FY) with an assessment year (AY). For instance, any income earned in FY 2024-25 must be declared in AY 2025-26.Quoting the wrong AY increases the chances of double taxation and attracts assessments.
How software helps: The software pre-fills the correct assessment year (AY), thus preventing the chances of errors and enabling correct tax calculations.
Often taxpayers forget to disclose income from other sources such as:
• Interest from savings bank account and Fixed Deposits
• Rental income
• Freelance Earnings
• Income Not Taxable
Exempt income is also required to be reported in the ITR. For instance, Agriculture Income, long-term capital gains of up to ₹1.25 lakh should be recorded.
How software helps: EasyOffice Software integrates Form 26AS and AIS/TIS, fetching all reported income and ensuring complete disclosure.
Form 26AS summarizes all the tax deductions, or TDSs, taken against the PAN of the taxpayer. In case there is any mismatch between the income reported and the TDSs claimed, it can lead to notices from the IT department.
How software helps: The software would then auto-fetch Form 26AS data, and reconcile the same with income entries. ITR filing software will give you the facility for the identification of errors before uploading the return and filing an accurate return.
The Annual Information Statement (AIS) is an extended version of Form 26AS that provides a broader range of financial data, including GST turnover, securities transactions, foreign remittances, and more. The Taxpayer Information Summary (TIS) offers a summarized and categorized view of this data. It shows two key values: the reported value, which reflects the information submitted by various reporting entities (e.g., banks), and the derived value, which incorporates the taxpayer’s feedback and forms the basis for pre-filled data in the Income Tax Return (ITR).
How software helps: The software would auto-fetch AIS/TIS data, and fill the required data in return. ITR filing software will help you reconciling data and avoid Discrepancies that can lead to tax notices, mismatched returns, or even penalties.
Most often taxpayers forget to claim deductions under Section 80C, 80D, 80G, etc. Thus, having a reduced scope of tax-saving opportunities.
How software helps: There is an option for Chapter VIA Deduction that suggests deductions allowable based on income and investments. Facility for calculation of relief and uploading / Printing of Form-10E helping taxpayers maximize savings legally.
Just filing ITR will not take care of the tax requirement; that must be filed and e-verified within 30 days of submission. Without verification, the return is said to be invalid.
How software helps: EasyOffice Software provides seamless e-verification options via Aadhaar OTP, Net Banking, and EVC, ensuring compliance. Additionally, Verification pending report to assure return Filled and Verified within due dates.
Taxpayers also tend to ignore emails or messages received from the Income Tax Department. However, these can lead to fines or scrutiny for the taxpayers. The notices may be regarding mismatches in reported income, incorrect TDS claims, or non-disclosure of foreign assets.
How software helps: It helps keep track of tax notices and instantly alerts users about them while also guiding them on responding appropriately.
Residents having foreign income, assets, or shares would be liable to report the same under Schedule FA in the ITR. The failure to report the same would result in very heavy penalties under the Black Money Act.
How software helps: A good ITR filing software aids taxpayers in the proper and accurate declaration of foreign holdings, thus ensuring tax compliance.
Mistakes in ITR filing result in awful tensions, penalties, and financial loss. With EasyOffice Software, a taxpayer can enjoy and file tax in an effective, error-free, and compliant way. Whether you are a salaried employee, freelancer, or business owner, easy and simple ITR filing is within reach. Avoid mistakes, save on taxes, then file with confident ease using EasyOffice taxation Software!
