8 Common Tax Mistakes & How to Avoid Them | Mind Your Tax

Common Tax Mistakes to Avoid During Filing Season

Tax season could be stressful if not handled properly. One basic mistake gets you into trouble for your tax return filing. Avoid these mistakes if you don't want to be stressed out and focus more on your productivity. At Mind Your Tax, filing your taxes becomes simple. Let's go over a few common pitfalls people face while preparing their tax returns and how to avoid them.

 1. Missed Deadline

One of the most common mistakes is missing the deadline, which leads to a penalty. Most people wait until the last minute before they begin their tax preparation. A deadline missed may lead to additional charges and penalties. To avoid this, one should start early. Mark the deadline, create enough time to collect your documents, and start filling them out. At Mind Your Tax, we can remind you of important dates and keep track of them. You can follow our social media like Instagram/ Facebook/ LinkedIn where we keep our followers updated about upcoming deadlines and income-tax-related updates.

2. Incorrect Personal Information

Small errors with personal information, including your name, bank details, or address can end up being big problems. These errors could delay your return or even cause the tax form to be rejected. Ensure that all your personal information submitted in your tax forms is accurately reflected in your government records. If you need our team at Mind Your Tax to verify it for you, we're here to help you.

3. Failure to Report All Income

People do forget to report their all sources of income. This may mean freelancing, income from rental properties, and part-time jobs. Failure to declare even the smallest income could be a ticking time bomb for an individual facing the Income Tax Department. All sources of earnings should be reported when filing taxes. Obtain your Form-16, Salary slip, and tax-saving documents before the deadline for tax filing. If you are not sure about what exactly to report, seek help from Mind Your Tax.

4. Arithmetic Errors

Tax returns are filled with numbers, and the smallest arithmetic errors can cause trouble. Even simple arithmetic errors in computation will cause you to be incorrect when filing your return. You may use tax software or tax consultants. At Mind Your Tax, we apply advanced tools to ensure all numbers are correct.

5. Failure to claim Deductions or Credit

There are numerous deductions or credits that most taxpayers fail to claim. It can reduce the amount you may owe to the income tax department. Some common deductions include investment in ELSS mutual funds, home loans, rent receipts, etc. Tax credits include the Earned Income Tax Credit. These can also reduce your bill. Be aware of what you are eligible for, if not, our experts at Mind Your Tax can give you advice on the best tax breaks for your situation.

6. Filling Wrong Forms

The last of all common mistakes is filling in the wrong tax forms. There are different forms for different types of income, deductions, and other forms of credit.  Filling out the wrong form will lead to getting a notice from the Income Tax Department which eventually causes a delay in processing the return on time. Always ensure that you're using the correct form according to your tax situation. If you have doubts, Mind Your Tax will be there to guide you step by step throughout the process of filing your taxes.

 7. Lack of Record Keeping

It is thus essential to keep all the tax-related documents in one place. Such records may include receipts, bank statements, and proof of income. It will especially help you to prove your source of income when the Income Tax Department audits you. Most people do not maintain such documents or lose them. To avoid that and ensure maximum preparation, establish a system to manage your tax records. Mind Your Tax always ensures you keep the most important documents intact for any unseen scenario.

8. Doing Tax Filing by yourself

Thousands of people take up the burden of filing taxes without proper knowledge and without professional help which leads them to the complexity of tax filing. Here professionals like Mind Your Tax come into the picture where several clauses need to be considered as excluding them could lead to the loss of your return. Getting professional help will ensure that all your concerns and shortcomings are handled properly, and tax filing processes are streamlined for you. Tax consulting services with Mind Your Tax is one of the best tax consultants in India, available at your service.

Avoid these common tax filing mistakes to save yourself from unwanted stress. Filing your taxes doesn't have to be a chore. At Mind Your Tax, we are here to help as an experienced income tax return consultant in Bangalore. Our team of experts will guide you through the process, ensure accuracy, and help you with all the claims you are eligible for.