BENGALURU: Make sure you are filing your Income Tax Returns (ITR) this monsoon. It has been difficult for layman to understand the complexity of taxation process. When you get an ITR form in hand, it is very important to fill several fields and nomenclature, and the information fed should be correct. So know what you are doing and avoid mistakes. Here are seven common challenges faced by the taxpayers while filing their ITR:

Enter the correct details: There are many blank boxes, columns, rows that needs to be filled manually. While filling the form, dates should be entered in DD/MM/YYYY format. Also know the difference between filing year, and assessment year.

Compute correct income: ITR taxpayer must take into account his salary and other income sources like savings account interest, fixed deposit, mutual funds, rental income from house/property, and income from short-term capital gains. These income sources are to be properly calculated and compiled in their respective fields.

Confirm the TDS detail: Many times, taxpayers tend to fill incorrect details of TDS (Tax Deducted at Source), and this is because the TDS is not only deducted from your salary but from other income as well. After filing, when data from government does not match with your’s, then it may create confusion leading to incorrect filing. To prevent such happenings, taxpayers can check the tax credit statement and verify the TDS deducted from different sources.

Remember login password: Since the ITR process is done once a year, users tend to forget password; so, reset the password. To reset the password you need to answer a secret question. Make sure to correctly answer the security question as it helps to reset password in the future as well.        

Know what is Form no 16: Taxpayer when changing the job needs to fill ‘Form no 16’ at the time of filing ITR. Form 16 is a TDS certificate that an employer issues to the employee when they deduct TDS.

Get your HRA form your employer: In case you are an employee, submit the rent receipts to company HR to get house rent allowance. Further, to successfully avail HRA benefits, a taxpayer needs to submit the landlord’s PAN number.

Reckon the deductions that are to be claimed: As per the rule, taxpayers are allowed to claim deductions upto 1.5 Lakh Rupees in each financial year.  

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