5 Common errors in GST, TDS, and IT filings
5 Common Errors in GST, TDS, and IT Filings You Should Avoid
In this post, we will discuss the 5 most common errors that taxpayers make while filing GST, TDS, and Income Tax returns. These mistakes can lead to penalties, interest, or even rejection of claims, but with careful attention and regular checks, they can be easily avoided.
Let’s take a closer look at each of these errors and how to prevent them:
1.Incorrect or Mismatched Data
- GST: Wrong GSTIN, invoice details, or mismatch in GSTR-1 and GSTR-3B., ITC mismatch (mismatch between Purchase register and GSTR-2A/2B)
- TDS: Wrong PAN of deductee or wrong challan details., wrong Tax rate, incorrect 197 certificate details
- Income Tax: Difference between Form 26AS/AIS and the income you show. Incorrect deduction claim
Tip: Always check your data with books of accounts, and verify the data with data as in Form 26AS/AIS, TRACES and GST portal records before filing.
2.Missing Due Dates
- Late filing of GST returns like GSTR-1 and GSTR-3B brings late fee and interest.
- TDS returns not filed on time lead to penalty under Section 234E., delay in payment of TDS will lead to interest of 1.5% per month, delay in Tax deduction will also attract interest of 1% per month
- Delay in ITR filing may cause loss of refund or carry-forward of losses. This will also have add on interest for delay payment and delayed filing of 1% per month
Tip: Keep a compliance calendar with reminders for all due dates.
3.Wrong Tax Calculation
- GST: Claiming wrong ITC or using wrong GST rate.
- TDS: Deducting at wrong rate, missing surcharge or cess. Not considering Invalid and inoperative PAN for higher deduction
- Income Tax: Missing deductions or exemptions, or applying the wrong slab.
Tip: Use updated tax software and keep an eye on CBDT and GSTN updates.
4.Non-Reconciliation of Returns
- GST: If GSTR-2B is not matched with purchase register, ITC claim will get rejected.
- TDS: Deducted but not deposited or mismatch between challan and return.
- Income Tax: Income shown in ITR not matching with AIS or 26AS, leading to notices.
Tip: Do regular reconciliation between books, returns and portal records.
5.Ignoring Amendments & Compliance Changes
- Changes in GST rules, updates to TDS sections and income tax provisions keep changing and often go unnoticed.
- If not followed, it can bring penalties or disallowance of claims.
Tip: Keep track of official notifications, consult experts or use compliance tools.
With that, we conclude this post. Please leave any questions or comments in the box below, and we are more than happy to answer them.
