Taxpayers must note that there are seven ITR forms based on the type of income and taxpayer. If you select the wrong form, your return may not get processed.
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ITR Filing 2023 Latest Update: With just a few days left for the Income Tax Return filing deadline to end on July 31, taxpayers are busy filing their ITR. However, some may make mistakes while filing ITR that might result in delay or rejection of ITR filing. Sometimes with numerous Income Tax (IT) rules, ITR filing can be overwhelming for an average taxpayer. Not surprisingly, several mistakes are committed while filing the ITR. In this article, let’s discuss some common mistakes that you can avoid during ITR filing.
Incorrect ITR Form
Taxpayers must note that there are seven ITR forms based on the type of income and taxpayer. If you select the wrong form, your return may not get processed. If the Income Tax department finds a wrong form selection, you are likely to get a defect notice.
Wrong Personal Information
While filing ITR, you give personal details such as name, address, email, phone number, date of birth, PAN. However, incorrect address, email and phone number can lead to a communication breakdown between the IT department and the taxpayer.
Incorrect Assessment Year
Sometimes a layman gets confused with assessment year and financial year. An assessment year follows a financial year. If you are reporting your income for the financial year 2022-23, the relevant assessment year is 2023-24. If you mention, incorrect assessment year, then ITE filing will be incomplete.
Incomplete Bank Details
While filing ITR, taxpayers need to disclose their domestic and overseas bank accounts. ITR filing will remain incomplete if all details of the bank are not given.
Failure To Pre-Validate Bank Account
Your income tax refund process will get delayed if you fail to pre-validate your bank account. While filing your ITR, you need to check if your bank account is pre-validated.
Not Reporting Minor Income
If you have a minor child who is an earning member, you need to mention his earning in the tax filing. Failure to do so would be non-compliance with the tax guidelines.
Delaying Tax Payments
You should not delay tax payments as 31st July is the last date of tax payment. Not filing ITR on time will attract an interest of 1% per month on the unpaid tax liability.
Incorrect TDS Information
Taxpayers must download Form 26AS from the income tax website and obtain Form 16 from your employer if you are a salaried person. These documents are crucial and must be checked to ensure that all income and TDS details are captured in the IT department’s database and that there are no discrepancies.
Not Reporting Income Details
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While filing ITR, you need to disclose all sources of income earned during the year. PAN is linked to all incomes, so any unreported income will show up on the return’s assessment and scrutiny.
Failure to e-verify ITR
After filing your ITR, don’t forget to e-verify the returns to complete the whole process. In this, you need to send a signed physical copy to the Central Processing Centre or e-verify using Aadhaar OTP.
