Jul 15, 2024

Filing Your ITR? Don’t Make These 10 Common Mistakes

NewsPoint

Missing the Deadline

Ensure you file your ITR before the due date to avoid penalties and interest. Late filing can lead to hefty fines and may also result in the loss of certain benefits.

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Incorrect Personal Information

Double-check your name, PAN, address, and bank details. Errors in personal information can delay your refund and complicate the process.

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Choosing the Wrong ITR Form

Choosing the wrong ITR form is common. Your form depends on your income sources and financial status. Using the wrong one can lead to inaccuracies and penalties. Know the forms and select the one that fits your situation.

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Not Reporting All Income Sources

Disclose all sources of income, including salary, interest, rental income, and any freelance earnings. Omitting income can attract penalties and scrutiny from the tax department.

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Ignoring Form 26AS

Cross-verify your tax deductions and income with Form 26AS. Discrepancies between Form 26AS and your ITR can trigger an audit or delay in processing.

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Claiming Ineligible Deductions

Only claim deductions you're eligible for, such as Section 80C, 80D, and 80G. Overstating deductions can lead to penalties and legal issues.

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Not Paying Advance Tax

If you have income from sources other than salary, ensure you pay advance tax. Failure to do so can result in interest charges under Sections 234B and 234C.

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Failing to E-Verify

After filing, e-verify your ITR through net banking, Aadhaar OTP, or other methods. An unverified ITR is considered invalid and can lead to delays.

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Ignoring Previous Year's Losses

If you have losses from previous years, ensure they are carried forward correctly. Not doing so can result in missed tax benefits and higher liabilities.

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Not Keeping Records

Maintain records of all financial documents, including TDS certificates, Form 16, and investment proofs. Proper documentation can help resolve discrepancies and provide support during audits.

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