7 Mistakes That You Might Make When Filing Taxes

Wealth Creation Tools for Women - Taxes. Photo by Ryoji Iwata on Unsplash

Reminder – August 31 is the last date for filing your taxes!

Everyone with an income has to pay taxes!

More women, today, earn more than previous generations.

And, women are taking charge of their finances like never before.
Except in the area of taxes.
I admit, taxes are bit technical. But the thing is, being familiar with the basics gives you that much more control in your journey to financial freedom, as a woman. And, perhaps, adding to your savings, too!

For example, one of our community members at Women On Wealth is going to pick up a fully legitimate return from the government of around Rs.44,000 simply by learning how the tax machine works.

Rs.44,000 is a lot of money, I think you’ll agree – and a pretty good reason to file taxes the correct way.

Another reason: usually, we hand over tax filing to a CA, or father, brother or other trusted person. And then you get a few forms that you may not understand fully, to sign off on. The fact that you have signed the legal forms makes you legally responsible, and if there are mistakes in the forms, the only person who will be held responsible is - you. This could lead to unpleasant consequences like fines, which we obviously never want!

Whether you should prepare your own or have a CA do it is a matter for you to decide, after you have studied all the information that you need - and this means making a little effort.
Who said being financially free was going to be easy!

If you’re among those women who have the passion and discipline to learn to prepare your own taxes – congratulations!

These 7 Tips Can Stop You From Making Common Mistakes When Filing Taxes
  1. Selecting the wrong Income Tax Form! ITR1, ITR2, etc.
  2. Quoting the Wrong Assessment Year (this could cost you double taxation/penalties)
  3. Furnishing Incorrect Personal Information
  4. Not disclosing All Sources of Income, Taxable or Exempt
  5. Failure to Reconcile TDS with Form 26AS
  6. Not Paying Advance Tax/Self Assessment Tax
  7. Failure to E-Verify or Dispatch ITR-V on Time

If you’re still not sure about how to go about preparing taxes, check out our sessions at Women On Wealth – before August 31st!
Drop a line if you want more information!