Common mistakes to avoid while filing ITR for the 2024-25 school year; learn the essential tips

ITR AY 2024-25 submission errors: The Income Tax Department has reminded taxpayers to file ITR for FY 2024-25 (or FY 2023-24) before July 31, 2024. Salaried persons have also been issued Form 16. The Filing Income Tax Returns (ITR) is an essential annual task for every taxpayer in India. Despite the simplified e-filing process, many people still make common mistakes that can result in fines, delays in refunds, or scrutiny by the income tax department. To ensure a smooth submission experience for Assessment Year (AY) 2024-25, it is important to be aware of and avoid these common mistakes.

Also Read: Who needs to file ITR for 2024-25 school year and what happens if you don’t?

1. Failure to comply with the deadline

One of the most frequent mistakes is not meeting the deadline for submitting the ITR. For AY 2024-25, the deadline is usually July 31, 2024, for individuals. Late filing may result in penalties and interest on any unpaid tax. To avoid this, set reminders well in advance and ensure that all necessary documents are ready before the deadline.

2. Incorrect personal information

Errors in personal details such as PAN number, name, address or bank account information can cause complications in processing your return. Please double-check all information entered to ensure accuracy. Any discrepancies may delay refunds or cause your return to be flagged for review.

3. Selecting the wrong ITR form

Choosing the wrong ITR form can result in rejection of your return. There are different ITR forms for various types of taxpayers and incomes. For example:

ITR-1: For people with income from salaries, house ownership and other sources up to Rs 50 lakh.

ITR-2: For individuals with salary income, more than one home, capital gains, etc.

Understand which form applies to your situation to avoid this error.

4. Not declaring all sources of income

It is essential to declare all sources of income, including interest from savings accounts, fixed deposits, rental income and any other income. Failure to do so can result in penalties for under-reporting income. Make sure you gather and report all your sources of income accurately.

5. Ignore Form 26AS and AIS

Form 26AS and Annual Information Return (AIS) are crucial for cross-verification of the income declared in your ITR. These forms contain details of tax deducted at source (TDS), advance tax and self-assessment tax paid during the year. Compare these statements to your records to ensure there are no discrepancies.

Also Read: What to do if Form 16 details do not match with Form 26AS to avoid notices from IT department

6. Claiming deductions incorrectly

Claiming deductions incorrectly is a common mistake. Make sure you are aware of the deductions available under sections like 80C, 80D, 80G, etc., and claim only what you are eligible for. Keep the necessary documentation to support your claims in case of any query by the tax authorities.

7. Not checking the ITR

After filing the RTI, it is essential to verify it within the stipulated time frame. An unverified return is considered invalid. You can verify your ITR electronically through methods like Aadhaar OTP, net banking or by sending a signed physical copy of ITR-V to the Centralized Processing Center (CPC).

Also read: What happens if you don’t e-verify the return within 30 days of filing?

8. Overlooking advance tax payments

If your total tax liability exceeds Rs 10,000 in a financial year, you will have to pay tax in advance. Failure to do so may result in interest penalties under sections 234B and 234C. Calculate your tax liability in advance and pay the necessary fees to avoid this mistake.

9. Incorrect calculation of capital gains

Calculating capital gains, especially for property and investments, can be complex. Be sure to accurately consider the acquisition cost, improvement cost, and indexing benefits. Calculation errors can result in incorrect tax payments and possible penalties.

10. Not keeping records

Keep complete records of all income, deductions and tax payments for at least six years. This documentation is essential in case of any inspection or reassessment by tax authorities.

Conclusion

Filing your ITR accurately and on time is essential to avoid penalties and ensure smooth processing. By knowing and avoiding these common mistakes, you can streamline your tax filing process for the 2024-25 tax year.