GST vs. Income Tax: Common Filing Mistakes

1.Incorrect Filing of Transactions: Meticulous record-keeping is key! Ensure all sales, purchases, and expenses are accurately reported to avoid discrepancies and potential tax notices. 2.Inaccurate Input Tax Credit (ITC) Claims: ITC allows you to claim credit for taxes paid on your purchases. Incorrect or incomplete claims can lead to either underutilization or overclaiming, both resulting in penalties. 3.Missing Deadlines: Timely filing is crucial! Late GST return submissions attract penalties, so mark your calendar and file well before the due date. 4.Ignoring Reconciliation: Regularly reconcile your GST return data with your accounting records and invoices to ensure everything matches and prevents future issues. 5.Not Registering for GST (if applicable): Understanding your GST registration requirements is crucial. Failure to register when mandated can lead to significant penalties. 6.Selecting the Wrong Form: There are different Income Tax Return forms for various taxpayer categories. Choosing the incorrect form can lead to a rejected return and delays. 7.Not Disclosing All Sources of Income: Be honest and report income from all sources, including salary, investments, freelance work, or rental income. Omission can lead to tax assessments and penalties. 8.Missing Deductions and Exemptions: You may be eligible for various deductions and exemptions that can significantly reduce your tax liability. Research available deductions and claim them accurately. 9.Incorrect Calculations and Reporting: Double-check all your calculations for accuracy. Errors can lead to underpayment or overpayment of taxes, both of which come with consequences. 10.Neglecting Advance Tax Payments: If you anticipate a high tax liability, make advance tax payments throughout the year to avoid penalties for late payments.