As the income tax filing season approaches, it’s important to ensure that people file their income tax return (ITR) accurately and on time. The ITRs for FY2022-23 (AY2023-24) need to be filed by July 31, which is the deadline as of now.
While the process may seem straightforward, many people make common mistakes that can lead to penalties, interest, or even legal issues.
To avoid these pitfalls, it’s crucial to be aware of the following 10 common mistakes that people often make while filing their ITR:
Read More: ITC Shares Jump 3% To Hit Fresh High; What Investors Should Know
Incorrect personal information
Make sure that you provide accurate personal information such as your name, PAN, email ID, and phone number. Any errors may lead to delays or issues with processing your ITR.
Incorrectly selecting the ITR form
The type of ITR form to be filed depends on the nature of your income. Be sure to select the correct form to avoid any issues.
Not reporting all income sources
Read More: 66% Return In A Month! This Smallcap Company Seeing Unabated Surge, Why?
It is important to report all sources of income while filing ITR, including salary, rental income, interest income, capital gains, and business income. Failure to do so may attract penalties or legal action.
Forgetting to claim deductions
Deductions such as medical insurance, education loan interest, and charitable donations can help lower your taxable income. Be sure to claim all eligible deductions to reduce your tax liability. However, this is applicable only if you are filing income tax under the old regime.
Not verifying the ITR
Verifying your ITR is crucial for it to be considered as filed. You can do this electronically or by sending a signed copy of the ITR-V form to the Centralized Processing Centre (CPC) within 120 days of filing the ITR.
Incorrect bank account details
Ensure that you provide the correct bank account details for any tax refunds. Any errors may lead to delays or non-receipt of the refund.
Read More: ITC Shares Jump 3% To Hit Fresh High; What Investors Should Know
Not matching Form 16 with Form 26AS
Cross-check the details provided in Form 16 (provided by the employer) with Form 26AS (a statement containing tax credits). Any discrepancies should be rectified before filing the ITR.
Not declaring foreign assets
If you have any foreign assets, including bank accounts or properties, ensure that you declare them in your ITR. Failure to do so may attract penalties or legal action.
Not filing ITR on time
Filing the ITR on time is crucial to avoid penalties and interest. The due date for filing ITR is July 31st, but it can be extended to September 30 in some cases.
Not keeping proper records
Maintaining proper records such as bank statements, receipts, and invoices is crucial to substantiate your claims while filing the ITR. These records can be helpful in case of any query or assessment by the tax authorities.
Read More: CLOSING BELL: Market Ends Flat, Sensex Falls 33 Points, Nifty Dips Inches Below 19.4K
By being aware of these common mistakes and avoiding them, you can ensure that your ITR is filed accurately and on time, and avoid any legal or financial issues.
