Income Tax Return filing: Common mistakes made while filing ITR

New Delhi: The Income Tax Return filing process for financial year 2023-24 (FY24) and assessment year 2024-25 (AY25) has begun. and the deadline for ITR filing is July 31, 2024. Income tax (I-T) return filing is a complex process which includes going through multiple documents and cross-checking numbers and transactions to ensure accuracy. Here, we look at common mistakes made while filing ITR.

Wrong ITR form filed

The very basic mistake income taxpayers commit when a wrong ITR form is filed. There are seven different types of ITR forms available on the income tax portal of the Income Tax Department. These are: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7.

The income tax portal clearly states who should file which ITR form. The portal details which types of taxpayers should file each of these ITR forms. Generally, salaried individuals can choose from ITR 1 to ITR 4 for income tax return filing. If the taxpayer has chosen an inappropriate tax form, then, I-T Department can reject the ITR filed and levy penalties. So, taxpayers must visit the IT portal and read which is the correct form for them to file ITR.

Concealment of income tax penalty

The I-T Department keeps a vigil on all income sources of every taxpayer. If you think, the authorities couldn’t track all your income sources, then you are wrong. So, you must disclose all sources of income in the ITR filing. Yopu must disclose incomes from:

Interest earned on savings accounts
Interest earned on fixed deposits
Trading profits

Wrong deduction claimed in Income Tax

During Income Tax return filing, some taxpayers avoid the trouble of calculating their income tax deductions accurately. His leads to inaccuracy in deductions claimed on the ITR. Such carelessness can invite penalties from the I-T Department. So, one must correctly claim deductions in accordance with investments made under various sections of the Income Tax Act, 1961.

Forgot to e-verify ITR

Taxpayers forget to e-verify their ITR after income tax return filing. ITR verification is a mandatory step in the ITR filing process. If you fail to verify your ITR on time, you may not recieve your tax refunds. So, its mandatory for taxpayers to verify their ITR.

Late ITR filing

Many taxpayers leave income tax return filing for the last minute. Owing to the last minute rush, the I-T portal may not function properly on the deadline and people might fail to file ITR within the specified time limit. The I-T department has set a deadline of July 31, 2024 for filing income tax returns of the previous financial year. ITR filing beyond the July 31 deadline will attract fines of up to Rs 5,000.

TDS mismatch in ITR

Taxpayers must ensure that there should not be any mismatch between details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) between Form 26AS and Form 16 as well as statements issued by tax collectors. TDS mismatch and a discrepancy in TCS may cost taxpayers in the form of penalties imposed by the I-T department.

 Income Tax Return filing: These common ITR filing mistakes can attract hefty penalties from the Income Tax Department.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today