Your Tax Return was rejected. What Now?

September 23, 2019
Your Tax Return was rejected. What Now?

Have you ever faced a situation where your ITR was rejected? Yes, ITR can be rejected by the Income-Tax department. Let’s see how to avoid ITR Rejections.

Why the tax returns get rejected?

Your tax return gets rejected if your ITR doesn’t reach the CPC within 120 days of e-filing or you fail to e-verify it.

It may also get rejected if you send your ITR without a proper signature. It may get rejected if all the information is not filled in as is requested.

There is another reason why it may get rejected; this may happen due to the poor quality of the paper.

IRS: Will it notify the tax rejection?

When the ITR-V status receipt shows “ITR –V has been rejected,” you must click on the acknowledgment number that indicates the reason for the rejection. You can see a message that “filing date has exceeded the due date”. There could be various other multiple reasons for tax rejection. IRS shows rejection notification when it discovers something incorrect or some information is missing.

How to correct the errors and re-file the tax?

There are two grace periods for submitting a corrected tax return form. For an e-file or refile, you will need to provide your tax return within five days of receiving an error message to avoid a penalty. Subsequently, you will be notified within 48 hours if your application has been accepted or rejected. If you are mailing your tax return, you will have 10 days from the moment you receive your rejection notice.

Paper tax returns get twice the grace period because error codes do not apply. E-Filing reduces the chances of errors. If IRS accepts your income tax returns, but your eyes spots error that they have overlooked, you have up to three years to file an amended return from the date you filed it.

How to avoid rejections?

You must clearly state all your incomes and investments over the course of the last financial year. Let us see what the types of earnings are called “income” as far as filing the ITR is considered.

Salaries: The money that an individual gets paid by his employer and it is undoubtedly taxable if it falls within the tax bracket. Salary is always considered as a taxable item House Property: In case you own a house, and you have leased it out or rented it to somebody, then the money that you receive as rent from your tenant is also counted as taxable income.

Business profits: Money made by an organization or an individual through business is always considered taxable.

Others: Money gained by an individual/institution through lotteries, donations, gifts, or interests is counted as a taxable income and should be mentioned in the ITR.

Remember that tax return getting rejected is not a very common phenomenon, but if it happens, there is no need to panic and a second chance of filing income-tax returns is always there.

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