Professional Tax Registration Consultant in Chennai  - kanakkupillai
                     Challenges Taxpayers face while Filing ITR 
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ITR Filing 
 The process of filing income tax return (ITR) can become 
quite complex if you do not understand the implications 
of what you are filling in the form. 
 When you file ITR make sure you are ready with all the 
correct information required because any inattention on 
your part can lead to a higher tax outgo. 
 Kanakkupillai list 10 challenges taxpayers can face at the 
time of filing ITR and how to overcome them. 
Challenge 1: Which ITR to file? 
 The income tax department issues seven ITR forms and 
which form you should use depends on your sources of 
income. 
 The number of forms can also change every year. The 
basic ITR form for most salaried people is ITR-1. 
 However, there are certain conditions that a person must 
satisfy in order to be eligible to file ITR1, therefore, all 
resident salaried individuals may not be eligible to file 
ITR-1. 
Challenge 2: Computation of taxable 
income 
 There are several incomes which are tax-free and incomes 
from which deductions and exemptions are allowed. 
 
  For instance, you may get incomes from multiple sources 
like fixed deposit interest, rental income from house 
property, savings account interest, income from short-
term/long-term capital gains, etc. So, keeping a track of 
income from different sources to compute taxable income 
can become quite complicated. 
Challenge 3: Calculating deductions
 You can save tax by claiming deductions from income up 
to Rs 1.5 lakh in a financial year under section 80C of the 
Income-tax Act, 1961. 
 This can be claimed by making investments in several 
financial products that allow section 80C benefit or by 
way of specified expenses like paying your child's tuition 
fee,etc 
Challenge 4: Filling correct tax deducted at source (TDS) in ITR 
 You must also know that the TDS is not only deductible 
from your salary but also from other incomes such as 
interest income from fixed deposits. 
 Therefore, if the details entered by you in the ITR form 
do not match with Form 26AS, the return filed can be 
incorrect. Rectifying the same can be challenging. 
Challenge 5: Having multiple Form 16s 
 Often it can become difficult to file your return if you 
have switched jobs during the financial year and even 
more so if you have invested money regularly during the 
year in tax-saving products.
 In such a case, you not only have to take Form 16 from 
your current employer but also from the previous 
employer/s. 
Challenge 6: Not able to get HRA tax relief 
 Calculating HRA exemption is important as it helps you 
in understanding how much exemption you can get from 
your income. 
 If you are living in a rented house, you need to submit 
rent receipts, rent agreement, and Permanent Account 
Number (PAN) of the landlord which is mandatory if 
your yearly rent exceeds Rs 1 lakh with your company's 
human resource (HR) department. 
Challenge 7: Not submitting tax proofs to the 
employer on time 
 If you have not submitted the tax saving-related 
investment proofs/documents to your employer on time, 
you will not get the deduction or exemption tax benefit 
from your salary income and these deductions will not 
show in your Form 16. 
  Hence in a scenario like this, you have to compute your 
taxable income carefully, filing an ITR with incomplete 
information can lead to higher tax outgo. 
Challenge 8: Forgetting/not knowing your 
password 
 Many taxpayers are totally dependent on 
professional chartered accountants who take care of their 
ITR filing. Most of the time, their ITR accounts are also 
accessed by their CAs. 
 A lot of us tend to forget our e-filing account's password 
since the account is accessed just once a year. In such a 
long span, generally, taxpayers forget their account's 
password. In a scenario like this, recovering the account 
can become onerous. 
Challenge 9: Not paying advance taxes on time
  If your total tax liability is more than Rs 10,000 in a 
financial year, then you are liable to pay advance tax during 
the year. This advance tax applies to all taxpayers whether 
you are a salaried individual, freelancer or a 
businessman. 
 You have to pay advance tax in quarterly instalments with 
15 percent on or before 15 June, 45 percent (minus 
advance tax already paid) on or before 15 September, 75 
percent (minus advance tax already paid) on or before 15 
December, and 100 percent (minus advance tax already 
paid) on or before 15 March. 
Challenge 10: Last minute ITR filing 
 Collating information from several sources and then 
filing ITR with correct information at the last minute 
can be taxing. 
 Unfortunately, if you have filed the wrong ITR, you 
will have to again file a revised one. 
 If you miss the due date for filing the ITR and file it 
later, then you will have to pay a late filing fee as 
applicable. 
ITR Filing in Chennai 
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