Common mistakes in filling of Income Tax Return (ITR)

Reasons for mistakes in calculation of Income.The accurate and complete filling up of the relevant column or detail in the Income Tax Return (ITR) form is most crucial for correct calculation of income. In case the computation of Income or refund is different than what had been entered or what is expected, please verify the accuracy of the data entered by you in the ITR. Except for limited number of complicated tax returns, for most taxpayers, the simple check points are the following: 

• Salary from all employers, irrespective of whether Form 16 has been issued or not, should be entered in Item 1 of ITR 1 or details in Schedule Salary in ITR 2. 

• Interest income from fixed deposits, savings bank account etc should be entered in Item 3 viz. Income from other Sources of ITR 1 or Schedule OS-Income from Other Sources in all other ITR's. 

• House Property Income. Schedule HP should be filled carefully including the address details. Income from House Property should be entered in Item 1a viz. Annual letable value/ rent received/ receivable. Municipal taxes paid should be entered in Item 1c viz. tax paid to local authority in Schedule HP-Income from House 

Property. 

 A flat deduction of 30% of the amount in Item 1e is the only deduction permissible for repairs and such expenses will be auto-populated in Item 1f of Schedule HP. 

 Deduction for Interest on housing loan should be entered in Item 1g viz. Interest payable on Borrowed Capital and is restricted to Rs 1,50,000 for 'Self Occupied' house. Therefore, correctly mention whether the house property is Self-Occupied or Let Out in Schedule HP. 

 Accordingly, the final value of Income from House Property will auto populate in Item 1i. 

 In case of multiple house properties do not use ITR-1, details of each house property have to be entered completely as mentioned above. 

 In case of ITR-1 , the House Property loss should be entered as a negative (-) value in the 'Income from House Property' column. 

• Income from Short Term Capital Gains should be entered in Item A of Schedule CG-Capital Gains. 

 Out of value auto-populated in column "Total Short Term Capital Gains", the amount of STCG attributable to STCG from sale of equity share in a company or a unit of an equity oriented mutual fund, typically, should be entered in column namely, 'Short term capital gain under section 111A included in 4'. 

 Moreover, the STCG under 111A as entered in column referred above is taxed at a lower flat rate of 10% 

 The residual value, where the STCG is due to sale of assets other than Equity Shares in a Company or Unit of an Equity Oriented Mutual Fund, if any, will auto populate in the column named, 'Short term capital gain other than referred to in section 111A' 

 The STCG due to sale of assets other than equity share in a company or a unit of an equity oriented fund is taxed at the normal slab based rates of tax. 

 Most mistakes in STCG are due to incomplete filling of the Schedule CG, incorrect apportionment of Total STCG into STCG on which Section 111A is applicable & STCG on which Section 111A is not applicable. 

Source : https://incometaxindiaefiling.gov.in/