Have you ever faced a situation where your ITR has been rejected? Yes, ITR can be rejected by the Income-tax department. This can happen in a situation where the ITR is either not signed, or it may be of a poor quality. As it is a very common situation most of the people look for steps to be taken if a situation like this arises. The income tax department informs you either via a text message which has been registered with the PAN no. or mails you on the corresponding email address. Also, the rejection status of your ITR can be checked online on the official website of the income tax department by logging into your account.
What is ITR?
We all are aware that it is essential by law to submit your Income Tax Returns every financial year, whether you are a company or a salaried employee, or even a businessman.
Income Tax Return, as it is more commonly referred to as is simply a document that informs the income tax department about the income as well as the investment of a person, or an organization over the course of one year. The person or organization in question may be a salaried employee, a businessman, a corporate establishment, or a self-employed person. The sum total of money earned and money spent by a person and institution helps the tax department to determine a person’s or organization’s tax liability.
The important thing to note here is that an individual is liable to pay tax if he earns Rs. three lakhs per annum or more, and hence must file the Income Tax Return. Even if you doesn’t fall in a taxable bracket you should still file the returns for records.
What are the reasons for ITR rejection?
1. Your income tax return get rejected if you ITR-V doesn’t reaches CPC Bangalore within 120 of e-filing or you fail to e-verify it.
2. It can also get rejected if you send your ITR-V to CPC Bangalore without signature.
3. Sometime poor paper quality is also responsible for the rejection of ITR.
What to do if the ITR has been rejected?
When the ITR-V receipt status shows “ITR-V has been rejected” you should click on the acknowledgment number that shows the reason for the rejection. If you see a message that says "Filing date has exceeded the due date", that ITR-V signed and sent by you hasn’t reached to CPC Bangalore within 120 days of e-Filing.
There could be other reasons for ITR rejection that include your ITR is folded or stapled.
How to send back the revised ITR?
You should exercise the option of filing a revised return and send and send ITR-V to CPC Bangalore.
1. Once your return is revised you should e-File it.
2. You will get an email for your revised ITR-V.
3. Now, send this revised ITR-V to CPC Bangalore.
What Should You Put In Your ITR?
The Government really just wants you to be honest with it. Clearly state all of your incomes and investments over the course of the last financial year, and you are done. Filing an Income Tax Return can be easily accomplished in few minutes.
But to do that, you need to know what type of earning is considered as ‘income’, as far as filing the ITR is concerned:
Salaries: The money that an individual gets paid by their employer is considered as a salary, and yes, it is taxable. Your employer could be a single person, a firm, or even the Government itself—your salary is and will be counted as taxable income.
House Property: In case you own property that you have leased out to somebody else, then the money you receive as rent from your tenant also counts as taxable income.
Business Profits: Any or all money made by a person or an organization via their business is considered to be taxable income.
Others: Any or all money gained by an individual and/or institution through lotteries, donations, interests and/or even gifts is counted as taxable income, and must be clearly stated in their respective Income Tax Return form.
How to make sure your ITR-V doesn’t get rejected:
Once you've verified your ITR the process of filing your income tax return gets completed. The ITR-V is a document that the income tax department sends taxpayers after they have filed their income tax returns. This document has to be downloaded and verified.
Physical verification of ITR-V:
Anyone can verify the ITR-V by downloading a copy from his email or from the income tax department website account. This physical copy of the ITR-V has to be signed and sent to the income tax department office in Bangalore.
The income tax department has the full right to reject you ITR if you’ve given a poor quality of signature on the ITR file. Here, poor quality means that the ITR-V copy is in a condition that makes it difficult for the department to read the entered details. This could happen if the ITR-V copy gets any spot or marks. So make sure that the physical copy is properly signed and reaches CPC, Bangalore in a good condition. Also, make sure that the ITR-V is printed on the prescribed form of paper i.e... A4 sheets only.
Furthermore, taxpayers have to ensure that the ITR-V reaches CPC within 120 days of filing their income tax returns. Crossing the due date of ITR-V can also lead to rejection and the person may also need to pay heavy penalties for the same.
Electronic verification of ITR-V: After filing e-verify it
1. By using your net banking account
2. By generating an electronic verification code (EVC)
3. By using your Aadhaar card to generate an EVC
4. By using your bank account details:
5. By using pre-validation facility of certain banks
6. By using your Demat account
Common mistakes to avoid while filing your ITR-
Incorrect Basic Details: Quoting the wrong PAN means your return will be rejected by the income tax department since the name for the given PAN in their records will not match with the name and PAN that you have provided. Taxpayer's name and date of birth should match with the one mentioned on PAN card. So, make sure that you provide all the information mentioned correctly.
Choosing Incorrect ITR Form: It is critical that you select and file the ITR Form applicable to you. Filing return with incorrect ITR form may lead to rejection of ITR. Therefore, it is very important that you choose a correct ITR Form
Fail to list all sources of Income: Taxpayer must report all types of income taxable as well as exempt. Even though banks deduct TDS on fixed deposit interest that does not mean you don’t mention the income in the ITR form.
Failing to claim deductions: One very common mistake is failing to claim the tax deduction of Income Tax Act. As a result, you will lose your hard earned money by way of taxes or worse you could miss out on a potential tax refund. So it is very important to mention all your deductions at the time of filing your income tax return.
Checking your Tax Credits: Form-26AS contain details regarding incomes & taxes deducted from the same, advance tax, self-assessment tax etc. All these tax credits will help you in getting the refund and avoid additional tax demands.