Filing taxes is a crucial financial responsibility for every individual and business in Kerala. However, many taxpayers unknowingly commit errors that can lead to penalties, notices from the Income Tax Department, or even loss of eligible deductions. Understanding these common tax filing mistakes and learning how to avoid them can save you both money and stress.
These are Common Tax Filing Mistakes to Avoid in Kerala
1. Incorrect Personal Information
One of the most frequent errors taxpayers make is entering incorrect details such as PAN, Aadhaar, bank account number, or IFSC code. Even a small mistake can delay refunds and create unnecessary complications.
Solution: Always double-check your personal details before submitting your tax return. Ensure your PAN and Aadhaar are linked, and verify that your bank details are accurate.
2. Not Reporting All Sources of Income
Many taxpayers, especially salaried individuals, forget to declare income from other sources such as freelancing, rental income, fixed deposits, or capital gains. Omitting these can lead to discrepancies in your tax return.
Solution: Maintain a record of all income sources throughout the year. Use Form 26AS and AIS (Annual Information Statement) to cross-check any income reported against your PAN.
3. Claiming Incorrect Deductions
A common tax filing mistake is claiming deductions under sections like 80C, 80D, or HRA without proper documentation. This can result in rejection during assessment.
Solution: Keep proper proof of investments, insurance, tuition fees, and rent receipts. Only claim deductions you are eligible for and can substantiate with documents.
4. Missing the Deadline
Late filing of returns can attract penalties and may also affect your ability to carry forward losses. Many taxpayers in Kerala miss the deadline due to lack of planning.
Solution: Mark important dates in advance. Gather necessary documents early and avoid last-minute filing. Use professional assistance if required.
5. Ignoring Advance Tax Payments
Freelancers, professionals, and businesses often fail to pay advance tax on time. This results in interest charges under sections 234B and 234C.
Solution: Estimate your annual income in advance and pay advance tax in installments as per the due dates.
6. Not Reconciling with Form 26AS
Some taxpayers directly file their returns without matching their TDS details with Form 26AS. Any mismatch can lead to notices from the Income Tax Department.
Solution: Always reconcile your income and TDS with Form 26AS before filing. This ensures accuracy and prevents tax notices.
Conclusion
Avoiding these common tax filing mistakes can save you from penalties, tax notices, and financial stress. A little attention to detail and timely planning goes a long way in ensuring a smooth tax filing experience.
If you need professional help with tax filing, bookkeeping, or compliance, contact Team Taxperts – your trusted tax and financial advisor in kerala.