Understanding the reasons why your ITR may be rejected is crucial. Filing your ITR each year can be frustrating, especially with changing income tax regulations. Experiencing rejection and having to resubmit all the necessary details can be disheartening.
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Facing rejection of your Income Tax Return (ITR) form can be inconvenient. However, the good news is that by familiarizing yourself with the common reasons for rejection, you can take proactive steps to ensure a seamless filing process. There are several reasons why the Income Tax Department in India might reject your ITR form. Here are a few common ones:
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- Incomplete or inaccurate information: This encompasses errors ranging from typographical mistakes in personal details to inaccuracies in income figures or claimed deductions. Verify all entries thoroughly to ensure accuracy before submitting the form. Providing inaccurate information may result in processing delays, rejection of your application, or potential penalties. To prevent these complications, ensure careful completion of the form and meticulous proofreading, especially after entering numerical data or codes.
- Income discrepancies: Discrepancies in income are a significant concern for tax authorities. The Income Tax Department might reject your ITR if there is a disparity between the income you declared in your return and the income reported by your employer (as shown in Form 16) or other sources of income. This discrepancy arises because the department receives data from multiple sources such as employers, banks, and investment institutions. If there are valid reasons for a discrepancy (such as income already taxed and reported by another source), you may need to provide a clear explanation along with your ITR filing.
- Incorrect tax assessment: Incorrect calculations are a significant cause of ITR rejection. Accurate calculation of your tax liability is crucial for your ITR. Errors in computing taxable income, deductions, exemptions, or tax rates can result in rejection. It’s important to adhere to the latest tax rules and regulations, as they are subject to change.
- Timely submission: Submitting your ITR before the deadline is crucial. Each year, there is a specific filing deadline for ITR forms. Missing this deadline increases the likelihood of rejection. Ensure you file your return well in advance of the due date. Failing to meet the deadline can lead to penalties or rejection of your return. Ensure you submit your return well in advance of the due date to avoid any complications.
- Failure to include a signature or verification: Not including a signature or verification can cause significant issues. The ITR form usually mandates a physical signature in designated areas. Additionally, electronic verification (e-verification) may be necessary after submission. Failing to complete either of these steps can result in your return being rejected.
- Technical issues: Dealing with technical glitches can be frustrating, but there are methods to address them. The ITR filing system might experience occasional technical glitches, which could result in submission errors. The specific technical glitches can vary depending on the particular ITR filing system. Some common types include data transfer errors, system overload, validation issues, and security certificate errors, which could potentially lead to the rejection of your ITR application.
- Poor quality form: If submitting a paper form physically, ensure it is printed clearly on A4 sheets. Forms that are blurry or torn may be rejected during processing. Use a black pen to fill out the form to ensure clear contrast. When making photocopies, ensure they are clear and complete reproductions of the original form. Avoid double-sided printing unless explicitly instructed otherwise.
- Non-verifying your ITR: The Central Processing Center (CPC) requires verification of the ITR-V form to authenticate your return. Verification can be done electronically using Aadhaar OTP, net banking, or by sending a signed ITR-V form via physical post. Failure to verify your ITR within the specified timeframe may result in your return being considered invalid and possibly rejected.
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By being aware of these common pitfalls and accurately completing the relevant schedules, you can greatly improve your chances of a seamless ITR filing experience and reduce the risk of rejection.
