{"id":266,"date":"2021-07-22T13:14:57","date_gmt":"2021-07-22T13:14:57","guid":{"rendered":"https:\/\/www.bbnc.in\/blog\/?p=266"},"modified":"2021-07-22T13:14:57","modified_gmt":"2021-07-22T13:14:57","slug":"avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return","status":"publish","type":"post","link":"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/","title":{"rendered":"Avoid These 5 Common Tax Mistakes In 2021 While Filing Your Tax Return"},"content":{"rendered":"<div id=\"pl-266\"  class=\"panel-layout\" ><div id=\"pg-266-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-266-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-266-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<p>Tax time is here. Some of you may be in for a pleasant surprise while others may find themselves in for a rude shock. We all make mistakes and here are the top 5 common tax mistakes and how they can be avoided.<\/p>\n<p>This blog covers the five most common tax mistakes that people make and how to avoid them.<\/p>\n<p>The tax code is difficult to understand. It is frequently changing, making it difficult to know what rules to follow and what advantages you are entitled to. A few foolish movements could give you a world of financial problems if you are not careful. Here are a few tax blunders you should avoid at all costs this year.<\/p>\n<ol>\n<li>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d3c4e895da8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d3c4e895da8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/#Not_Filing_Your_Return_Earlier\" >Not Filing Your Return Earlier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/#Under_Reporting_of_Your_Income\" >Under Reporting of Your Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/#Failure_to_Select_The_Correct_ITR_Form\" >Failure to Select The Correct ITR Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/#Pre-Validate_Your_Bank_Account\" >Pre-Validate Your Bank Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bbnc.in\/blog\/tax\/avoid-these-5-common-tax-mistakes-in-2021-while-filing-your-tax-return\/#Failure_to_Claim_The_Deductions_Correctly\" >Failure to Claim The Deductions Correctly<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Not_Filing_Your_Return_Earlier\"><\/span>Not Filing Your Return Earlier<b><br \/>\n<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the IT Department, 20% of taxpayers wait until a week before the deadline to file their income tax forms. Unfortunately, procrastinators who wait until the last minute may miss the deadline if they face any problems when filling out their forms.<\/p>\n<p>If you're expecting a refund from the IT Department, it's best to get started as soon as possible. While taxes aren't due until August 31, you might receive your refund back much sooner if you work hard.<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Under_Reporting_of_Your_Income\"><\/span>Under Reporting of Your Income<b><br \/>\n<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Failure to record all of your income is a great way to have your return audited by Income tax department. As you prepare to file your taxes, keep in mind that you must report to the income tax department all of the money you earned in 2020, whether it was income from other sources, interest from a bank account, or dividends from a brokerage account.<\/p>\n<p>Also, keep in mind that unemployment benefits are taxable income that must be reported. In 2020, many people have lost their jobs. If you were one of them, you must file for the benefits you received when you file your next tax return.<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Failure_to_Select_The_Correct_ITR_Form\"><\/span>Failure to Select The Correct ITR Form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is something that every taxpayer should keep in mind when filing their ITR. Every year, the income tax department issues amended ITR forms stating the eligibility requirements. Each ITR form varies depending on the type of income that the assesses must disclose. Because the forms are revised each year, you may no longer be required to file the same ITR you filed last year due to the changes.<\/p>\n<p>You may also be required to disclose extra\/less information if new fields are introduced to the updated forms. Please take caution while determining your eligibility and filing the appropriate ITR based on the nature of your income. The use of an incorrect ITR form may result in a notice from the Income Tax Department<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Pre-Validate_Your_Bank_Account\"><\/span>Pre-Validate Your Bank Account<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is important to pre-validate your bank account when filing your income tax return. Particularly if you have a tax refund to claim. The tax department will not credit your refund if your bank account is not validated. The refund is now credited straight to the taxpayer's bank account by the Income-tax department. It is important to verify your bank account, which can be done online via the tax department's <a href=\"https:\/\/www1.incometaxindiaefiling.gov.in\/home\">website<\/a>.<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Failure_to_Claim_The_Deductions_Correctly\"><\/span>Failure to Claim The Deductions Correctly<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is likely that you were unable to submit tax-saving investment proofs to your employer, and hence the information was not recorded on your Form 16. Even if you did not reveal your investments to your employer, you can still claim a tax break when you file your income tax returns.<\/p>\n<p>Keep track of your investments as supporting documentation so that you can claim these deductions. In addition, if you have several form 16s, make sure you report the pay data of any employers you changed during a financial year.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">We understand that the<\/span><a href=\"https:\/\/www.bbnc.in\/services\/income-tax-return-filings-for-individuals.php\"> <span style=\"font-weight: 400;\">process of ITR Filing<\/span><\/a><span style=\"font-weight: 400;\"> can be a complicated one, as every year there are new rules and regulations introduced by the Income-tax department. If you need any help filing your ITR Returns or<\/span><a href=\"https:\/\/www.bbnc.in\/services\/Tax-Planning.php\"> <b>Tax Planning<\/b><\/a><b>,<\/b><span style=\"font-weight: 400;\"> please reach out to us at info@bbnc.in or<\/span><a href=\"https:\/\/www.bbnc.in\/contact-us.php\"> <span style=\"font-weight: 400;\">click here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Tax time is here. Some of you may be in for a pleasant surprise while others may find themselves in for a rude shock. We all make mistakes and here are the top 5 common tax mistakes and how they can be avoided. This blog covers the five most common tax mistakes that people make [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[26,25],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Avoid These 5 Common Tax Mistakes In 2021 While Filing Your Tax Return | BBNC<\/title>\n<meta name=\"description\" content=\"Are you wondering if you will make any mistakes while filing your tax returns? 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