Filing Income Tax Returns (ITR)? Here are some common mistakes to avoid
Filing Income Tax Returns: With the deadline looming, taxpayers should steer clear of common mistakes that could complicate the process or incur penalties. Individual taxpayers must file by July 31st of the assessment year. Hasty filing or procrastination can lead to errors, affecting the outcome of the filing. Whether filing manually or online, avoiding these key mistakes is crucial.
ITR Filing: As the deadline for filing income tax returns approaches, taxpayers are reminded to avoid common errors that could potentially complicate the process or lead to penalties. The due date for individual taxpayers is set for July 31st of the assessment year. Rushing through the filing process or procrastinating until the last minute can result in inaccuracies, impacting the outcome of the return filing. Whether filing manually or online, here are key mistakes to steer clear of:
Selecting the incorrect form
Choosing the appropriate Income Tax Return (ITR) form is crucial. Failure to do so can result in processing issues or receiving a defect notice from the tax department. Different forms cater to various income categories, so it's essential to choose the right one to avoid complications later on.
Quoting the wrong assessment year
Ensure the correct Assessment Year (AY) is provided to avoid double taxation or penalties. For instance, for the fiscal year 2023-24, the corresponding AY is 2024-25.
Furnishing incorrect personal information
Accurate personal details are vital for seamless processing. Ensure that information such as name, address, PAN, and bank details for refunds are entered correctly to avoid delays or discrepancies.
Not disclosing all sources of income
All income sources, including interest from savings accounts, rental income, and capital gains, must be disclosed. Even if income is exempt from tax, it should still be reported to prevent scrutiny from tax authorities.
Entering correct details manually
Details must be entered accurately following the prescribed format. Mistakes in data entry could lead to errors in the return, emphasising the importance of meticulousness.
Failure to reconcile income and TDS with form 26AS
Verify Form 26AS to ensure that tax deductions are accurately reflected. Discrepancies between Form 26AS and Form 16 could affect refunds or tax liabilities.
Failure to reconcile income and investments with AIS and TIS
Cross-check Annual Information Statements (AIS) and Taxpayer Information Summaries (TIS) to ensure accuracy in reported income and investments.
Form 16 from two or more employers
Aggregate incomes from multiple employers when filing returns to avoid confusion and ensure accuracy.