Income Tax Return 2019: One tax filing mistake that may put you in big trouble

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Published: August 6, 2019 1:45:35 PM

Income Tax Return e-Filing for AY 2019-20: Benefits of pre-filled ITR Forms are available to assessees eligible to file ITR-1 and ITR-4, but the amounts given should be checked properly to ensure that the figures are accurate.

Income Tax Return e-Filing 2019, ITR Filing 2019-20, how to file itr online, how to file income tax return, tax filing mistake, Form 16, Income Tax Department, Tax Notice, TDS, tax payable, pre-filled ITR Form, ITR-1, ITR-4Non-filing of Return would also invite stringent penal actions.

Despite being a Law graduate, Company Secretary Anika Gupta (name changed) made a mistake while filing her Income Tax Return (ITR) two years ago when she was working with a multi-national company in Mumbai. A year later, she returned to Delhi to stay with her parents and joined another organisation, but the mistake she made continued to haunt her as the concerned Income Tax Commissioner issued a notice and summoned her for personal appearance at the Income Tax (I-T) Department in Mumbai.

The mistake she made was leaving the TDS page blank and submitting the ITR with ‘Tax Payable’ of around Rs 6 lakh, despite the amount was mentioned in Form 16 as tax deducted at source (TDS) and deposited with the Income Tax (I-T) Department. As a result, although she didn’t verified the return, the I-T Department asked her to deposit the amount of tax payable to avoid penal actions, despite the fact that the tax was already deducted from her salary and deposited to the Department.

When asked how the I-T Department has initiated the action on the basis of an unverified Return and what if she declines to verify that the Return was filed by her, CA Ravi Kumar Singh of RGS & Associates said, “Disowning the Return would invite more trouble, because she is in 30 per cent tax bracket and filing ITR is compulsory for her. So, non-filing of Return would also invite stringent penal actions, especially because she is already under the lens of the I-T Department.”

So, if you are earning more than Rs 2.5 lakh per annum, you have to compulsorily file ITR and at the time of e-filing of Income Tax Return 2019-20, you should ensure that the ‘Tax Paid and Verification’ page in ITR is not showing any ‘Tax Payable’ before submitting your return. Although there is the benefit of pre-filled ITR form available to assessees eligible to file ITR-1 and ITR-4, but you should check all the fields to ensure that the figures are accurate.

If the ITR is showing ‘Tax Payable’, go to the ‘TDS’ page and check the pre-filled TDS figure(s) are matching with the figures given in Form 16 and Form 26AS. In case there is any variation, correct the figures and then check again if it is still showing ‘Tax Payable’.

In case it is still showing ‘Tax Payable’, check all the allowable deductions and figures of tax-saving investments you made are reflecting on the ITR. If there is any variation or some figures are missing, correct or enter the figures to remove the variation. Then check again if it is still showing as ‘Tax Payable’.

In case there is no ‘Tax Payable’ or it is showing ‘Tax Refund’, submit the return, otherwise pay the amount of tax payable and enter the BSR Code, Challan Number and Date of payment of tax in the respective fields in the TDS page. Once, the details of Self Assessment Tax are entered in the TDS page, ‘Tax Payable’ will no longer appear and in come cases the Refund amount of Rs 10 may appear due to rounding off.

So, you should always remember not to submit your return with ‘Tax Payable’ even if the figure is as low as Rs 10, because this one mistake would attract Income Tax Notice, payment of additional tax or even penal actions.

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