New Delhi: The last date to file Income Tax Return (ITR) is 31 July 2024. Several taxpayers leave the ITR filing for the last minute. People do make mistakes while filing ITR, though corrections can be made, but it is better to not make one. Here are 10 mistakes that you should avoid while filing ITR.
Wrong ITR Form
There are 7 types of ITR Form. Often people get confused as to which form they should file. If you file an ITR, but have selected the wrong ITR form, then it will be considered an invalid return.
Not validating bank account
It is very important to validate bank account to receive tax refunds. The Income Tax department has recently asked taxpayers to validate or revalidate their bank accounts. You can validate your bank accounts on the e-filing portal of Income Tax.
E-Verify ITR
After filing an Income Tax Return, many people forget to verify their return. However, verification of ITR is a mandatory step. Without it, your tax return will be treated as an invalid return. Hence, the Income Tax department will not process it. It needs to be done within 30 days of uploading ITR.
Not claiming eligible deductions
Taxpayers should claim deductions to decrease their taxable amount. You can claim deductions of interest income from a savings bank account. You can also claim a deduction if an employee does not receive a House Rent Allowance (HRA).
Miscellaneous income
Many people forget to show their miscellaneous income, as they feel that these income are exempt and are not taxable. But you should report all sources of income, whether they are taxable or exempt income.
Delay in filing ITR
The last date to file ITR is 31 July 2024. If you file ITR after this date, you will have to pay late filing fees. So, file the ITR within the due time to avoid paying any late fees.
Reconcile income with AIS
Thoroughly check your Annual Information Statement (AIS) while filing your Income Tax Return (ITR). It is important to ensure accuracy and avoid income discrepancies. This helps to ensure that you haven’t missed any income sources. If you see something on the AIS that isn’t right, you can submit feedback for the corrections.
Check TDS amount with Form 26AS
TDS given in Form 16 can be cross-checked with Form 26AS. Form 26AS shows that TDS has been deposited with the Government.
Club income from the previous employer
If you changed jobs within a financial year, you should report the income from your previous jobs as your tax liability might change because all your incomes will be added together.
Not filing ITR
Many people think that filing an ITR is only important when they have to pay taxes. However, there are many benefits of filing ITR as it helps you to get a loan from bank. So make sure to file your ITR.
ITR filing mistakes: After filing an income tax return, many people forget to verify their return. However, verification of ITR is a mandatory step. Without it, your tax return will be treated as an invalid return. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
