Challenges People Face While Filing Income Tax Returns

Tax laws in India are complicated to understand. And for a layman, calculating taxes and abiding by all the laws is nearly impossible without the help of an expert. The complicated Taxation system has led to decrease in the number of people paying taxes. To encourage income earning individuals to pay taxes as well as to simplify the procedures, the government of India has digitalised the whole process. It is now possible to file your income tax returns online. The process is known as e-filing.

However, the online return filing process also requires careful consideration. A single mistake can result in rejection of your return e-filing application. Here are a few challenges that taxpayers face that can lead to mistakes. Read on:

Entering Accurate Details: - Although the online process has simplified things to a great extent, the official website of income tax department still requires you to enter the income details manually. Also, the ITR forms carry a number of rows and columns to be filled. There is a set format in which you are required to fill in the information. There are high chances of taxpayers entering inaccurate information.

Different Form 16s can mess things up: - Form 16 is the most important document when it comes to filing income tax returns. It is a statement issued to you by your employer. It contains information such as income details, investments, tax liability etc. If you have changed jobs, there is a possibility that you have Multiple Form 16s. Filing returns with Multiple Form 16 can be a bit difficult.

Calculation of Deductions: - Under section 80 C of income tax act, taxpayers are allowed the deduction up to Rs 1.5 lakhs by way of certain investments. All these deductions are to be mentioned in your return form. Often, taxpayers aren’t aware of the deductions they are eligible to claim.

These are some of the common challenges taxpayers face while e-filing. To avoid making these mistakes, take the help of a professional tax consultant. You can also use services of a private online tax portal.

These are some of the common challenges taxpayers face while e-filing. To avoid making these mistakes, take the help of a professional tax consultant. You can also use services of a private online tax portal.