Common Mistakes to Avoid when Filing your ITR
Filing your Income Tax Return (ITR) correctly and on time is crucial to avoid penalties and legal issues. Many taxpayers, however, make common mistakes that can lead to rejected filings or delayed refunds. Here are the key errors to avoid.
1. Choosing the Wrong ITR Form
Your ITR form depends on your income sources. For example, salaried individuals earning below ₹50 lakh should file ITR-1, while those with capital gains or multiple properties must file ITR-2. Filing the wrong form can invalidate your return.
2. Providing Incorrect Personal Details
Ensure your name, PAN, email, and bank details are accurate. Mistakes can cause delays in processing or refund credits.
3. Not Reporting All Income Sources
Many taxpayers forget to report interest on FDs, rental income, or freelance earnings. Since your PAN is linked to financial transactions, unreported income may trigger tax notices.
4. Ignoring Form 26AS
Form 26AS records your TDS and tax payments. Any mismatch with your ITR can lead to scrutiny. Always cross-check before filing.
5. Claiming Incorrect Deductions
Only claim eligible deductions under Sections 80C, 80D, and 80E for expenses like insurance premiums or home loan EMIs. False claims can result in penalties.
6. Not Verifying Your ITR
Your return is incomplete until verified. Use Aadhaar OTP, net banking, or send a signed ITR-V to complete the process.
Conclusion
To avoid delays or penalties, report all income sources, choose the correct form, verify Form 26AS, and ensure timely verification. If unsure, seek professional help for error-free tax filing.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.