Mistakes to avoid while filing tax returns

The first and foremost thing is the correct selection of the return form on the basis of the status of the tax payer.


It’s that time of the year again when you have to file your income tax return. While the process may be tedious but that doesn’t mean it is not important.  Filing income tax return is essential to prove that you have a source of income which helps you a long way while taking a loan or applying for a VISA. Given its importance just keep the following points in mind so that you do not commit any mistake while filing the income tax return.

1.    Correct return form to be filed:  Selection of correct return form is the first and foremost thing while filing returns. Aseem Chawla, Managing Partner, ASC Legal says-”The first and foremost thing is the correct selection of the return form on the basis of the status of the tax payer being individual, Hindu Undivided Family, partnership firm etc, source of income and whether any asset is situated outside India”. Out of these, ITR 1 to ITR 4 are applicable to individuals/HUFs, while ITR 5 is for partnership firms and LLP, ITR 6 is for companies. Each form depends on the individual situation. So, keep in mind that if you forget to give correct information, it will reject your file returns and will be declared failed from IT department. Try to take help from experts and select the right tax form. 

2.    Give all your basic information carefully and correctly: Your information like Permanent Account Number, name, date of birth, address, bank account details, etc. should be carefully entered while filing tax return. The personal details to be entered while filing the tax return should match the details with the PAN database maintained by the income tax department, So, be careful, a single mistake will make your tax return invalid. “Bank account details should be entered correctly so as to receive the refund of taxes properly by way of credit in the bank account” opines, Chawla.

3.    Credit of tax deducted at source: Credit of tax deducted at source on the income earned during the year should be taken while calculating the overall tax liability. The assessee should verify tax credits available in Form 26AS/NSDL in taxsmile.com website. Mismatches are the single largest cause of incorrect tax computation. Non credits may be taken up with the TDS deductions and/or the banker as soon as they are noticed.

4.    Do report interest income from all sources: Income from fixed deposits, savings account interest and recurring deposits are must to mention while filing tax return. Archit Gupta, Founder and CEO, www.taxsmile.com says-”Do remember to report interest income from all sources such as fixed deposits, savings account interest and recurring deposits interest. All of these are taxable. Deduction under section 80TTA of maximum Rs 10,000 is allowed on savings account interest and must be claimed via your tax return”.

5.     Foreign assets and foreign income: “If you hold any foreign bank accounts, foreign retirement accounts, or any other assets like shares of a company listed outside India and your status is resident for income tax purposes, it is mandatory for you to report all your foreign holdings by filing a tax return, irrespective of whether you have taxable income or not.” adds Gupta. The resident sssessee having any income from any source outside India should disclose the same in the relevant schedule of the relevant income tax return form. “The foreign source income should be converted into Indian currency at the rate of exchange mentioned in the tax rules. The resident assessee should also disclose all the assets owned and maintained by him/her outside India.” opines Chawla.

6.    New schedule of assets and liabilities: Don’t forget to disclose the cost of movable assets (vehicles), cash in hand, jewellery, bullion and immovable assets such as land and building, in case the income of the assesse exceeds Rs. 50 Lakhs rupees. The same has been introduced to capture the detail of the assesse in light that the Wealth Tax Act has been abolished. So, be alert while mentioning all your assets and liabilities. “If you invest in equity shares or mutual funds, do report your gains or losses. Short term gains are allowed to be carried forward and set off in future years and therefore you must report these in your tax return.” Adds Gupta.

7.    Arrears and Form 10E: If you have arrears you can claim tax relief on arrears under section 89(1) of the income tax act. However, do remember to file Form 10E. It is compulsory to file Form 10E if you are claiming tax relief. Otherwise, your tax return filing will not be valid.

8.    Forget to mention retirement benefits: If you have recently retired and have earned a large income from gratuity/PF or any other retirement benefits, which are exempt from tax. Remember to report these under exempt income. Gupta says-”This will help explain any investments or income you earn from them. If these exempt incomes are invested in fixed deposits, any interest earned from them is fully taxable”

9.    E-verify your tax returns and send ITR-V: ITR filing is not enough; you have to verify your tax returns or send it to ITR-V to CPC Bangalore. Don’t forget to verify your returns. The tax department will not process your ITR and you have to again file your income tax return. So, it is very important to send your copy to IT department after online filing to avoid any hassles. Verification is must and there are online verification options available while filing tax returns online. Do keep in mind all the steps and avoid mistakes.

So, keep all the above points in your mind and file your tax returns carefully to avoid any mistakes. One single mistake can make your tax filing invalid by IT department. Last but not the least, if you are new to file tax returns, then do take the help of experts and advisors before filing. This will surely help you to file tax returns in a better way.


Income tax slab rates for 2014-15 & 2015-16 in India

Budget 2015 Update:

Finance Minister Arun Jaitley announced the Budget 2015 on 28th Feb and announced that an individual taxpayer can now claim exemption from Income Tax for Income upto Rs. 4,44,200.

However, he didn’t announce the Slab Rates. A careful read of the Memorandum to the Budget indicates that there is no change in the Slab Rates applicable for 2015-16. The Slab Rates for 2014-15 and 2015-16 are the same.

The Finance Minister very smartly announced that individual taxpayers can claim exemption from Income Tax upto 4,44,200. While announcing this, he had kept into account the various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc. However, there has been no change in the Income Tax Slabs. The applicable Income Tax Slab Rates are detailed below.

Income Tax Slab Rates for 2014-15 & 2015-16

The Income Tax Slab Rates for 2014-15 & 2015-16 are the same. The Income Tax Slab Rates are different for different categories of taxpayers.

The Income Tax Slab Rates can be divided in the following categories:


1.For Male Individuals below 60 Years of Age and HUF

2.For Female Individuals below 60 Years of Age

3.For all Senior Citizen above 60 years of Age

4.For all Super Senior Citizen above 80 years of Age


1.Co-operative Society

2. Firms, Local Authority & Domestic Company

Income Tax Slab Rates:


The following Income Tax Slabs are applicable for theFinancial Year 2014-15 i.e. Assessment Year 2015-16 as well as Financial Year 15-16 i.e. Assessment Year 16-17. Education Cess @ 2% and SHEC @ 1% shall be levied on the Tax computed using the Income Tax Rates given below while filling the Income tax Return No Surcharge is applicable in case of Individuals and HUF’s

It is pertinent to be noted that Budget 2013 introduced Section 87A which provides Income Tax Rebate of Rs. 2000 for all Individuals earning Income less than Rs. 5 Lakh in a Year

1.For Male Individuals below 60 Years of Age and HUF:

incometax returns

2.For Female Individuals below 60 Years of Age:

incometax efiling

3.For all Senior Citizen above 60 years of Age:


4.For all Super Senior Citizen above 80 years of Age:

Taxsmile eFiling Income Tax India

Computation of Age:


If an Individual attains the age of 60 years or 80 years during the financial year, his age shall be regarded as 60/80 (as the case may be), for that whole Financial Year.

After the computation of Total Tax Payable computed as per the Income Tax Slabs, the Balance Income Tax payable after the deduction of TDS as shown in Form 16/Form 16Aand reflected in Form 26AS shall be payable vide Challan No. 280in the form of Advance Tax in Instalmentsbefore the specified Due Dates or else Interest on delay in payment of Income Tax would be liable to be paid.


The following Income Tax Slab Rates shall be applicable for Assessment Year 2015-16. Assessment Year 16-17 i.e Previous Year 2014-15 & Previous Year 15-16Education Cess @ 2% and SHEC @1%shall be levied on the Income Tax so computed.

1.For Co-Operative society:

tax efilling

2. For Firms, Local Authority and Domestic Company:

Income Tax Slab Rates won’t apply in this case and flat shall be computed on the Total Income. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore.


income tax returns

1. You need to furnish IT Returns to get a work visa.

2. When applying for bank loans you need to furnish your IT proof.

3. If excess taxes are deducted from your salary, you can get a refund.

4. You can avoid paying penalties by filing your taxes in time.

5. Your tax contributions are key to building our nation’s infrastructure .

3 easy steps to file :

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  • Enter your Form-16 data
  • Review Tax Calculation
  • File your returns

Starting at just  250+tax. Start Now! Proceed to e-Filing .


Be Careful, These 5 Common Errors Will Affect your Tax Liability

The season of filing Income Tax Return has arrived, and now it’s time to take up the responsibility of filing the tax return seriously. Here is a list of 5 serious errors committed by tax payers which not only affects their tax liability but also increases the probability of getting a notice from the Income Tax Department.

Income Tax eFiling

1. Failure to report Income from Other Sources:

People often forget to report their income from other sources. Such income can be interest from FDs, interest earned from Savings Bank Account, etc… The tax payers who have switched the jobs from one company to another often forget to report the income from previous employer in their ITR. People also do not report certain income because they are confused regarding their taxability. They think that the TDS deducted by the Deductor is sufficient and no tax is needed to be paid on it and therefore there is no need for them to declare such income. But, this is not true. Rather, they must report all the income accrued in a year in their Income Tax Return. Therefore, do not forget to declare all the sources of income accrued in a year in your Income Tax Return.

2. Failure to report Income from Minor Child :

Some tax payers invest in the name of the minor child such as Fixed Deposits, Recurring Deposits, Bonds, etc. As some or the other income is earned every year on these investments, people think that these income belong to their minor child and hence it is not required to include them in their Income Tax Return. Whereas the clubbing provision of Income Tax Law specifically states that all the income accruing to the minor child must be included in the hands of a Parent whose income is higher. An exception to this rule is applicable on Children who are earning income due their own skill or talent such as Child Artists, Sports Kids, etc.. So, report all the income of your Minor Child in your Income Tax Return this year.

3. Failure to report Exempt Income :

Hasty filing of Income Tax Return may lead to omission of exempt income. An individual can have exempt income such as dividend, long term capital gain on equities, interest on provident fund, etc. As Income Tax Department specifically asks for the details of exempt income, failure to report such income may lead to unnecessary nuisances in future.

4. Mistakes in Claiming Tax Benefits :

Many taxpayers are not aware that they are eligible for tax savings for Health Insurance premium in the form of Section 80D.Some do not properly claim deduction of repayment of Principal Amount in case of Home Loan and while some forget to claim deduction for Donations made to various NGOs. Thus, you should be very careful to properly claim all the deductions while filing the Income Tax Return as it will reduce your tax burden up to a certain extent.

5. Discrepancy in TDS details: 

You should not be ignorant about any discrepancies in your TDS details in Form 26AS as it may lead to additional tax liabilities. So, you should check your form 26AS before filing the Income Tax Return and report the problems (if any) immediately to the appropriate authority.

Now you can clearly understand that though these errors may appear to be smaller, it significantly affects the income tax liability. So, avoid such mistakes and enjoy hassle free Income Tax Return filing.

Last few days to file!

Taxsmile.com the India’s largest individual tax services company is an E-Return Intermediary registered with the Income Tax Department.

Taxsmile.com is offering FREE Tax Filing (barring cases involving capital gains or foreign income) services to you till 31st July, 2014.

Taxsmile.com tax advisor shall prepare your return after you finish the following 2 steps:

i) Click the link below and register:


ii) Upload the Form 16 issued by your organization, and submit your personal and tax information.

An Taxsmile.com is Tax expert would then prepare your tax return, resolve your queries and e-file your return after your confirmation.

For further Queries, please mail us info@taxsmile.com, You can also reach us by calling @ +91 80 4336 0000

Some Common Tax Filing Mistakes

Many of us have been working for years now and file our tax returns diligently every year. But, the truth is, even the most cautious & meticulous individual is prone to making silly mistakes while filing his/her income tax or while declaring details to their employer. This post is about some of those silly mistakes, which might seem too-little-to-worry kind of mistake but, if big brother decides to investigate, they can impose heavy penalties and punishments. So, it is extremely important that we file our tax returns truthfully and most importantly without missing any details. 

What are those mistakes? 

The most common mistakes that we do as tax payers when it comes to Income Tax Calculations are: 

1. Not declaring Interest Earned from Bank Accounts, Fixed Deposits etc
2. Double Declaration of Expenses like HRA, Medical Bills, etc
3. Not declaring other sources of income like Gifts
4. Double Calculation of Standard Deduction


Taxsmile Charges, Taxsmile efiling Income Tax Return Prices

Taxsmile eFiling Income Tax Return Charges:

1. Do-It-Yourself- Free* :above 5lac net taxable income Rs.250 +Taxes charges
File your Return in four simple steps
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For taxpayers having net taxable income more than rs5 lac, then taxsmile charges is Rs.250+taxes

* For taxpayers having net taxable income less than equal to Rs5 lac

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Hassle-Free Filing of Income Tax Returns

Taxsmile offers free e-filing for those with net taxable income of up to Rs. 5 lakh. You’ll have to enter all details by yourself, which is a disadvantage compared to the two websites mentioned above. For Rs. 500, you can upload your Form-16 and let Taxsmile take care of filing.

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Ready to file your tax returns?, Income tax return filing last date 2014

July 31 is the last day for filing your income-tax returns:

With July 31 being the last day for filing income-tax returns, tax assesses need to start getting their returns ready electronically. In the last few years, things have become quite easy due to the e-filing process. E-filing is mandatory for taxpayers with an income of over Rs 5 lakh a year. But before that you need to know the changes in the return form this year. Changes in return forms are brought about almost every year.

What’s new?
There are some changes that one needs to keep in mind. For instance, form Income Tax Returns – 1 or ITR-1 has space for first-time home buyers to claim deduction under section 80EE. Those who took a home loan between April 1, 2013 and March 31, 2014 can claim an additional deduction of Rs 1 lakh on the housing loan interest paid, that is, they can claim tax benefit for interest repaid up to Rs 2.50 lakh instead of Rs 1.50 lakh. However, the loan amount for this should be Rs 25 lakh or less. The new form ITR-2 requires you to divide capital gains into several categories, based on the nature of the capital gains and the asset sold.

You will also have to furnish details of exempt allowances under Section 10. ITR-2 asks for information on house rent allowance (HRA), leave travel allowance (LTA), tax paid by employer on non-monetary perks and other allowances. Till last year, you only had to mention the sum total of all such tax-exempt allowances.

Read more here

Step by step guide to file your Income Tax Returns at Taxsmile

e Filing of income tax returns online is very easy. First time users need to register and need to verify PAN number (PAN) in the Taxsmile website to do the filing.

Tax Filing Steps:
1. Do-It-Yourself
step1. Register your Account
Step2. Login to your Account
Step3. Update Personal Profile
Step4. Provide Income & Payment
Step5. Review Tax Calculations
Step6. Efile Your Returns