Common Mistakes to Avoid During ITR Filing"

                    Common Mistakes to Avoid During ITR Filing

Filing Income Tax Returns (ITR) is a crucial financial responsibility for individuals and businesses. It ensures compliance with the law and can lead to various financial benefits. However, the process of ITR filing can be daunting, especially for those unfamiliar with tax regulations. Many taxpayers make common mistakes that can lead to penalties, delays, or even audits. In this article, we will discuss the common mistakes to avoid during ITR filing to ensure a smooth and accurate process. 

  The last date of filling the ITR is beyond 31,2024. 

ITR FILE 31 JULY 2024 

1. Incorrect Personal Information

One of the most common mistakes during ITR filing is entering incorrect personal information such as name, PAN (Permanent Account Number), address, or bank details. Even a small error in these details can lead to the rejection of your ITR or a delay in refunds. Ensure that all personal information is accurate and matches the records in your PAN and bank accounts.

2. Choosing the Wrong ITR Form

The Income Tax Department provides different ITR forms for various types of taxpayers, such as salaried individuals, self-employed professionals, businesses, and more. Selecting the wrong ITR form can result in an incorrect filing, which may lead to penalties or rejection. Understand your income sources and choose the appropriate ITR form that corresponds to your category.

3. Not Reporting All Sources of Income

Many taxpayers make the mistake of not reporting all their sources of income. This includes income from investments, interest from savings accounts, rental income, and any other additional income. Non-disclosure of any income source can lead to scrutiny from the tax authorities and potential penalties. Ensure you report all sources of income during ITR filing.

4. Incorrect Calculation of Taxable Income

Accurate calculation of taxable income is essential for correct ITR filing. Taxpayers often make errors in computing their total income by either missing out on deductions or incorrectly calculating exemptions. Use reliable tools or consult a tax professional to ensure accurate computation of taxable income.

5. Ignoring Tax Deductions and Exemptions

The Income Tax Act provides various deductions and exemptions to reduce taxable income, such as deductions under Section 80C, and 80D, and exemptions for HRA (House Rent Allowance) and LTA (Leave Travel Allowance). Many taxpayers fail to claim these deductions, resulting in higher tax liability. Make sure to claim all eligible deductions and exemptions during ITR filing.

6. Not Verifying the ITR

After filing your ITR, it is crucial to verify it either electronically or by sending a physical copy to the Centralized Processing Center (CPC) within the specified time frame. Unverified ITRs are considered invalid, and the filing process remains incomplete. Ensure you complete the verification process to avoid complications.

7. Missing the Filing Deadline

One of the most common and significant mistakes during ITR filing is missing the deadline. The due date for filing ITR varies for different categories of taxpayers, and failing to file within the deadline can attract penalties and interest on the tax due. Mark the filing deadlines on your calendar and complete the process well in advance to avoid last-minute rush and errors.

8. Incorrect Bank Account Details

Refunds are processed based on the bank account details provided in your ITR. Incorrect bank account information can lead to delays or non-receipt of refunds. Double-check the bank account number, IFSC code, and other relevant details before submitting your ITR.

9. Ignoring Previous Year’s Notices

If you have received any notices or communication from the Income Tax Department regarding previous years’ returns, it is essential to address them before filing the current year’s ITR. Ignoring such notices can lead to complications and may impact the processing of your current ITR. Resolve any outstanding issues with the tax authorities to ensure a smooth filing process.

10. Not Keeping Records of Documents

Proper documentation is crucial for accurate ITR filing. Many taxpayers fail to keep records of necessary documents such as Form 16, investment proofs, medical bills, and other supporting documents. Maintaining a well-organized record of these documents can help in accurate reporting and can be useful in case of an audit.

11. Overlooking Foreign Income and Assets

For taxpayers with foreign income or assets, it is mandatory to report them in the ITR. Many taxpayers overlook this requirement, leading to penalties and scrutiny from the tax authorities. Ensure that you disclose all foreign income and assets to comply with the tax regulations.

12. Errors in TDS (Tax Deducted at Source) Details

Mismatches in TDS details are common mistakes during ITR filing. Ensure that the TDS details in your Form 26AS match the entries in your ITR. Any discrepancies can lead to delays in processing or additional tax liabilities. Verify the TDS details from your Form 26AS before submitting your ITR.

13. Ignoring Advance Tax Payments

Self-employed individuals and taxpayers with significant income from sources other than salary are required to pay advance tax in installments. Ignoring advance tax payments can lead to interest penalties. Ensure that you have paid the correct amount of advance tax during the financial year to avoid penalties during ITR filing.

14. Not Seeking Professional Help When Needed

ITR filing can be complex, especially for individuals with multiple income sources or businesses. Many taxpayers make the mistake of not seeking professional help when needed, leading to errors in their returns. Consulting a tax professional can help ensure accurate ITR filing and compliance with tax regulations.