Filing Income Tax Return: These common errors in ITR filing can lead to heavy penalties from the Income Tax Department.
Selecting the wrong ITR form is the most common ITR filing mistake made by taxpayers. (Photo credit: News9Live)
New Delhi: The process of filing Income Tax Return for financial year 2023-24 (FY24) and assessment year 2024-25 (AY25) has started. and the deadline for ITR filing is July 31, 2024. Filing income tax (IT) return is a complex process that includes reviewing multiple documents and verifying numbers and transactions to ensure accuracy. Here we analyze the most common mistakes made when filing the ITR.
Wrong ITR Form Submitted
The most basic mistake taxpayers make when wrong ITR form is filed. There are seven different types of ITR forms available on the Income Tax portal of the Income Tax Department. These are: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7.
The Income Tax portal clearly establishes who must submit which ITR model. The portal details which types of taxpayers must submit each of these ITR forms. Generally, salaried individuals can choose between ITR 1 and ITR 4 for filing income tax return. If the taxpayer has chosen an inappropriate tax form, then the IT Department can reject the submitted ITR and impose penalties. Therefore, taxpayers must visit the IT portal and read which is the correct form to file the ITR.
Hiding income tax fine
The IT Department monitors all sources of income of each taxpayer. If you think that the authorities were unable to trace all of his sources of income, you are wrong. Therefore, you must disclose all sources of income in the ITR filing. Yopu must disclose income from:
- Interest earned on savings accounts
- Interest earned on fixed deposits
- Business benefits
Erroneous deduction claimed in Income Tax
While filing Income Tax returns, some taxpayers avoid the hassle of accurately calculating their income tax deductions. This leads to inaccuracy in deductions claimed in the ITR. Such carelessness may result in penalties from the IT Department. Therefore, one must properly claim deductions in accordance with investments made under various sections of the Income Tax Act, 1961.
I forgot to verify the ITR electronically
Taxpayers forget to electronically verify their ITR after filing the Income Tax return. ITR verification is a mandatory step in the ITR filing process. If you do not verify your ITR on time, you may not receive your tax refunds. Therefore, it is mandatory for taxpayers to verify their ITR.
Late submission of ITR
Many taxpayers leave filing their tax return until the last minute. Due to last minute rush, the IT portal may not function properly on the deadline and people may not file ITR within the specified time frame. The IT department has set the deadline of July 31, 2024 for submission of Income Tax returns for the previous year. Filing ITR beyond the deadline of July 31 will attract fines of up to Rs 5,000.
TDS does not match in ITR
Taxpayers should ensure that there is no discrepancy between the details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) between Form 26AS and Form 16 as well as returns issued by tax collectors. taxes. TDS mismatch and a discrepancy in TCS can cost taxpayers in the form of penalties imposed by the IT department.
