Taxation is a complex process. The forms used when filing returns are very complicated. These forms have several fields which must be filled in. One must also understand the nomenclature used. Any mistake done when filing the returns can make the entire process go awry. Discussed below are the major challenges faced by taxpayers when filling and submitting their income tax returns
Failure to enter the correct details
The ITR forms have many columns and rows which must be filled in when filing your income tax returns. The required details should be entered following a particular format. Errors will always occur in case these details are not entered correctly. For instance, one must strictly follow the format specified for the different dates. Your returns will be considered to be incorrect one you enter the dates in a different format.
Incorrect computation income
Every taxpayer is supposed to compute his or her income accurately. These sources include your fixed deposit interests, saving account benefits, income from capital gains and rental income from your property. All the incomes should be entered and included in the relevant fields.
Mismatch of important details
The tax deducted at the source might end up being incorrect since TDS is deducted from all the incomes and not on salary alone. The filled returns will be considered to be incorrect in case there is a mismatch between the data entered in the available IT R forms and that of the government. It is always advisable for the taxpayers to check on their tax credit statement. This will help them in verifying the TDS being deducted from various sources.
When the employer does not give HRA benefits
Individuals might not get their house rent allowance if they fail to submit their rent receipts. Most taxpayers do not avail their HRA benefits. The process of calculating the amount of HRA applicable is also very tricky.
Failure to calculate some deductions which can be claimed
As a taxpayer, you are always allowed to claim a certain percentage of deductions in every financial year. You should also include all the other sources of income apart from your salary. These deductions are calculated from certain expenses and investments. However, figuring out the amount of money to be claimed can be very tricky since most of the taxpayers are not aware of all the expenses which are eligible for deductions.
Different form 16s for individual who have changed their jobs
A taxpayer will always end up having different forms 16s when he or she changes his or her job. Such taxpayers will have different forms each employer when they are filling their tax returns.