For many taxpayers, filing income tax returns (ITR) can be a difficult undertaking. To guarantee a hassle-free return filing, it is imperative to steer clear of the typical ITR filing errors.
We’ll go over ten major ITR filing errors in this post to help you stay in compliance with tax regulations and stay out of trouble. Here they are.
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Inaccurate Personal Data
Ensuring the accuracy of personal information is a crucial component of filing an ITR. This contains your phone number, email address, PAN (Permanent Account Number), and entire name. Any mistakes in these details could cause problems with your income tax return or delays in processing. Verifying your personal data again guarantees a seamless filing procedure.
Form 26AS and Form AIS Reconciliation
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To improve reporting of income details, the government implemented the Annual Information Statement (AIS). “Taxpayers must reconcile their income records with Forms AIS and 26AS and make any necessary adjustments. According to Swetha Kochar, Partner, PKC Management Consulting, “offering feedback on Form AIS can help avoid inquiries from the Income Tax Department and ensure compliance.”
Not Declaring Every Source of Income
Taxpayers frequently make the error of not disclosing all of their income sources when submitting their ITR. All forms of income, including capital gains, rental income, interest income, and salary, must be included. Ignoring any source of income could result in fines or even legal action. Thus, report all earnings diligently.
Ignoring to Make Deduction Claims
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One efficient method of lowering your taxable income and tax obligation is to claim deductions. There can be large tax savings from deductions for things like health insurance, student loan interest, and charitable contributions. Especially if you are filing income tax under the previous regime, make sure you are aware of all the deductions you are eligible for and make sure you claim them all.
ITR not being verified
In order to ensure that your ITR has been filed successfully, you must verify it.Within 120 days of filing, you have the option to electronically finish the verification process or to send a signed copy of the ITR-V form to the Centralized Processing Centre (CPC). If you skip this step, your ITR may not be valid. Thus, be sure to promptly confirm it.
Incorrect Bank Account Details
Giving accurate bank account information is crucial, particularly if you qualify for a tax refund. Any mistakes in the bank account details may cause delays or possibly prevent the refund from being received. Verifying the bank account information twice can help you avoid needless trouble and guarantee a seamless refund procedure.
ITR not submitted on time
It is essential that you file your ITR by the deadline in order to avoid fines and interest. The ITR filing deadline is typically July 31st, but in certain circumstances, it may be extended to September 30. Making the effort to file your ITR on time is crucial because failing to do so may have financial repercussions.
Not Maintaining Accurate Documentation
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It is essential to keep thorough records in order to support your claims when filing your ITR. Bank statements, invoices, receipts, and other pertinent paperwork are among these records. In the event that the tax authorities have any questions or concerns, having the right paperwork can help.
