Filling out the ITR 2024: As the tax filing deadline of July 31 approaches, salaried taxpayers should be careful while filing their Income Tax Returns (ITR) to avoid any inconvenience in obtaining the ITR. Filling the ITR is easy, many investors fill it themselves and others choose to get help from professionals. In both scenarios, minor errors can result in notices from tax authorities and taxpayers may end up paying fines. You need to avoid common mistakes like personal information, incorrect tax forms and not checking Form 26AS.
Still, we have many taxpayers who do not declare income from other sources or exempt income, and some even fail to provide incomplete bank details or forget to e-verify their ITR. Below are some typical mistakes that taxpayers should avoid at all costs.
Correct tax form
Use the appropriate ITR form to declare all taxable and tax-exempt sources of income. For example, salaried persons whose gross income is less than Rs. 50 lakh and have no capital gains should use ITR 1. Submitting wrong form can result in penalties and tax return can also be considered defective.
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Income from other sources
Income from interest or dividends from savings accounts must be declared in accordance with article 56 of the Income Tax Law. Failure to report earnings from these sources could cause difficulties. Even exempt income must be declared. For example, capital gains after selling a home and then reinvesting to buy another home are exempt under section 54, but must still be reported when filing an income tax return.
Could not inspect Form 26AS
It is worth noting that Form 26AS provides a complete overview of your income, TDS, self-assessed taxes paid and advance taxes. Verify this information using your employer’s Form 16. Inaccuracies may result in a reduced refund or increased tax liability.
ITR could not be verified electronically
Verification of your ITR within 30 days of filing is mandatory. Any ITR that has not been electronically verified is not processed by the Income Tax department and will be considered invalid. Failure to respond to verification notices may result in no-show penalties.
Incomplete or incorrect bank details
Accurate bank details including name, IFSC code and account number are required to process refunds. Many refunds are delayed due to incorrect banking information. Please verify your bank account in advance to ensure smooth processing.
These are some points that must be taken into account in the process of completing the ITR.
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