What Challenges are Faced by the ITR Filing India Taxpayers

 If you don't grasp the ramifications of what you're filling down on the form, the process of completing an income tax return (itr filing, India) can get rather complicated.As a result, when filing your ITR, make sure you have all of the necessary information because any oversight on your part could result in a higher tax bill. Income Tax Help Desk helps you with all your itr filing india that is why we’ve got you a list of some challenges that you’re likely to face while filing an ITR:

Which ITR to File

In general, the IRS publishes seven ITR forms, and which one you should use is determined by your income sources. Every year, the quantity of forms available may change. ITR-1 is the simplest basic ITR form for most salaried workers. However, certain conditions must be met in order for a person to be eligible to file an ITR-1, therefore not all resident salaried individuals will be able to do so. This is why calculating income and determining which ITR form to use can be difficult.

Computation of taxable income

There are numerous tax-free incomes and incomes from which deductions and exemptions are available under the headings of income. In such a situation, calculating taxable income accurately becomes difficult. For example, you could earn money from a variety of sources, including fixed deposit interest, rental income from a residence, savings account interest, and income from short- and long-term capital gains, among others. As a result, keeping track of revenue from various sources in order to calculate taxable income can become fairly difficult.

Calculating Deductions

Section 80C of the Income-tax Act, 1961 allows you to claim deductions from income up to Rs 1.5 lakh in a financial year. This can be claimed by investing in a variety of financial instruments that qualify for the section 80C benefit, or by deducting specific expenses like paying your child's tuition fee. Expenses that are eligible for deductions are sometimes overlooked by taxpayers.

There are various qualified deductions available under Section 80 that you may not be aware of, which might make it difficult for you to complete correct tax-saving calculations when submitting your ITR.

Filling the correct TDS in ITR

TDS should ideally be the same in Form 26AS and Form 16 or 16A when filing an ITR. There are a variety of reasons why details are frequently mismatched. For example, if the employer has not paid the money with the tax department on time, the TDS data on Form 16 are unlikely to match those on Form 26AS, and so on.

Not Submitting tax proof to the employer on time 

Salaried employees are required to present tax-related documents to their employers on a timely basis. Exemptions and deductions that you may be eligible to will be offered by your employer on Form 16, and you will be able to claim these deductions when you e-file.

Having Multiple Form 16s

It can be tough to prepare your tax return if you changed employment throughout the fiscal year, and even more so if you invested money in tax-saving items on a regular basis. In this scenario, you must get Form 16 not only from your current employer but also from your previous employer or employers. It can be difficult to file returns with many Form 16s.

Failure to file Returns & pay advance taxes lately 

Individual taxpayers under the age of 60 must pay advance tax in quarterly payments if sufficient tax is not withheld and their tax burden after TDS deduction exceeds Rs 10,000. If you do not pay your advance taxes on time, you will be charged interest at the rate of 1% per month (under section 234B). 

Last Minute itr filing, India

It might be time-consuming to gather data from many sources and then file an ITR with the correct information at the last minute. Unfortunately, if you filed the incorrect ITR, you will need to file another one. If you file your ITR after the due date but before the deadline, you will be charged a late filing fee.

Final Thoughts

Income Tax Helpdesk is your one-stop tax solution, offering you the best in taxation and legal services ranging from itr filing, india to GST registration and more.