Completing the task of ITR filing is crucial for all taxpayers in India. Many individuals make errors while submitting their ITRs, resulting in fines, interest charges, or legal problems. This article will cover the common mistakes to steer clear of when filing your income tax return (ITR) in India.
Selecting the Incorrect ITR Form
Selecting the incorrect ITR form is a frequent error made by taxpayers. Various ITR forms are available for various taxpayers, including individuals, Hindu Undivided Families (HUFs), and companies. If you select the incorrect form, your ITR may be rejected, and you could face a penalty. It is important for taxpayers to select the appropriate ITR form depending on their income sources and category.
Untimely Filing of Income Tax Returns
Filing your income tax return after the ITR filing last date is a frequent error. Individuals are required to file their ITR by July 31st annually. If you don’t file your ITR on time, you may be charged a penalty of up to Rs. 10,000. To avoid penalties, it is important for taxpayers to file their income tax returns (ITR) within the designated time frame.
Failing to E-verify the ITR Filed
Verifying your filed ITR within 120 days is crucial. If you don’t do it, your ITR may be rejected, and you may have to pay a penalty. Taxpayers are required to e-verify their filed ITR within 120 days of filing it.
Providing Inaccurate Personal or Contact Information
When submitting your ITR, it’s crucial to provide accurate personal and contact information. Providing inaccurate information like name, address, and PAN can result in the rejection of your ITR. When filing their ITR, taxpayers need to make sure that they give correct personal and contact information.
Submitting Inaccurate or Incomplete Bank Information
When filing their ITR, taxpayers need to make sure they give accurate and comprehensive bank information. Providing inaccurate or insufficient bank information may result in a refund delay or failure to receive a refund. Before submitting their ITR, taxpayers should verify their bank details to ensure accuracy.
Not Reporting Income from Investments
When filing their ITR, taxpayers are required to disclose all income earned from investments, including fixed deposits, mutual funds, and stocks. Failing to report this income may result in a notification from the Income Tax Department. When filing their ITR, taxpayers need to make sure they report all investment income they have earned.
Giving Inaccurate Details
When submitting your income tax return, it is important to fill out the personal information section of the forms accurately. If you give inaccurate information, your ITR may be rejected, and you could face a penalty. When filing their ITR, taxpayers need to make sure that they give correct personal information.
Failing to Maintain Accurate Documentation
It is important for taxpayers to maintain accurate records of their income and tax payments throughout the fiscal year. If you don’t maintain accurate records, you may make mistakes when filing your income tax return and could be subject to a fine.
Filing ITR Using Incorrect Tax Form
It is expected of every taxable person to declare all of their income sources, including those that are taxable and those that are exempt from taxation, using the correct ITR form that is appropriate to them. If you submit your Individual Tax Return (ITR) using the incorrect form, then your return will be considered to be “defective.” Before submitting your ITR 5, it is necessary first to determine whether or not the form is applicable to your situation.
Conclusion
Every taxpayer in India is required to accomplish this necessary and crucial activity of filing their income tax returns. However, in order to avoid penalties, interest, and possibly even legal concerns, it is essential to avoid making typical mistakes while filing your ITR. During the process of submitting their ITR, taxpayers are obligated to make certain decisions, including selecting the appropriate ITR form, filing their ITR at the appropriate time, verifying their ITR within 120 days, mentioning their correct personal information, providing their right and complete bank details, and reporting all income obtained from investments and their most recent employer.
