Capital gains or rent: All income must be reported in Income Tax Return

Capital gains on switching between MF plans, notional income from vacant property, minor's income are ones taxpayers often overlook.

Some early Income-Tax Return (ITR) filers have notices from the tax department for not reporting various incomes. Even if you are getting your returns filed by a tax professional, you must disclose required details. Failure to do so leads to incorrect filing and under-reporting of income, with adverse consequences.

The complexity of tax laws and taxpayers’ ignorance are both contributing to this. “Errors and omissions by taxpayers are common because of the complexity of income-tax forms and lack of awareness of income–tax laws,” says Pratyush Miglani, managing partner, Miglani Varma & Co - Advocates, Solicitors and Consultants.

Citing one example,