Income Tax Return: 8 common mistakes to avoid for a flawless income tax filing
Selecting the incorrect form: One of the most common mistakes people make is choosing the incorrect form to file their taxes. Each form is tailored to a certain sort of income and taxpayer profile, and using the incorrect form might result in mistakes and processing delays. CA expert advises taxpayers to thoroughly analyse the qualifying conditions for each form and seek professional advice if confused.
Also Read: Income tax return (ITR) filing 2024: How to show accrued interest on bank fixed deposits (FDs)? Proper treatment of F&O transactions: Futures and options (F&O) transactions can be complicated, particularly in terms of tax treatment.
CA urges clients to appropriately declare F&O transactions, including profits and losses, on their tax returns. Failure to do so may result in tax notifications and fines from the Income Tax Department. Correct treatment of donations made: Section 80G of the Income Tax Act allows donations to charities to be tax-deductible.
However, CA advises against claiming deductions for donations without adequate paperwork. Taxpayers should donate to qualifying organisations and acquire receipts to claim deductions.
Also Read: Is 80D Deduction the Only Way to Save Tax for Insurance Holders Proper treatment of ESOPs: Employee Stock Ownership Plans (ESOPs), which include Restricted Stock Units (RSUs), provide particular tax problems for employees. CA emphasises the need to know the tax consequences of ESOPs, such as tax timing and share valuation.
