What Common Mistakes to Avoid When Filing Income Tax Returns (ITR)
The submission of an Income Tax Return (ITR) is the most significant financial obligation that every taxpayer should perform. But the slightest error may lead to a delay, a penalty, or a notice from the Income Tax Department. To help you avoid such issues while filing your ITR, here are some common mistakes that you should be careful with.
Choosing the Wrong ITR Form:
Using the wrong ITR form will not only invalidate your return but also delay the processing.
Not Reporting All Income Sources:
If you do not disclose income from interest, freelancing, or renting, you might end up facing both penalties and scrutiny.
Ignoring Form 26AS and AIS:
Any discrepancies between your filed return and the data in Form 26AS or AIS may result in a tax notice being issued.
Missing Deductions and Exemptions:
Not claiming deductions that fall under Sections 80C, 80D, and 80TTA could mean that you are paying tax on a higher amount than necessary.
Not Verifying ITR After Filing:
If you do not perform e-verification through Aadhaar, bank, or net banking, your ITR will remain incomplete and thus invalid.
Filing After the Deadline:
Filing late leads to penalties for late ITR submission, longer waits for refunds, and also the loss of benefits for carry-forward.
