ITR Filing 2023 24 10 Common Mistakes You Must Avoid
ITR Filing 2023 24 10 Common Mistakes You Must Avoid As the Income Tax Return (ITR) filing deadline for 2023-24 approaches, many taxpayers find themselves rushing to meet the deadline. This last-minute rush can lead to unintentional errors that may result in hefty fines, rejection of returns, or unnecessary scrutiny from the tax authorities. To help you avoid these pitfalls, we’ve compiled a list of 10 common mistakes you should steer clear of when filing your ITR at the last minute.
Incorrect Personal Information
ITR Filing 2023 24 10 Common Mistakes You Must Avoid One of the most common errors is filling in incorrect personal details such as name, PAN number, or bank account information. Ensure your name matches the one on your PAN card, and double-check account details like IFSC codes to avoid refunds being sent to the wrong account.
Pro Tip: Always keep a copy of your PAN and Aadhaar card handy for cross-verification before submission.
Selecting the Wrong ITR Form
Each ITR form is designed for a specific type of taxpayer, such as salaried individuals, business owners, or individuals with multiple sources of income. ITR Filing 2023 24 10 Common Mistakes You Must Avoid Selecting the wrong form can lead to rejection or additional compliance requirements.
Solution: ITR Filing 2023 24 10 Common Mistakes You Must Avoid Choose the ITR form according to your income type and source, such as ITR-1 for salaried individuals and ITR-4 for freelancers and professionals opting for presumptive taxation.
Not Reporting All Sources of Income
Many taxpayers make the mistake of only reporting their primary income and forgetting additional sources such as interest income, capital gains, rental income, or income from part-time jobs. ITR Filing 2023 24 10 Common Mistakes You Must Avoid Omitting these can result in underreporting of income, leading to notices from the IT department.
Tip: Consolidate all sources of income and use Form 26AS to cross-check TDS deductions before filing.
Incorrect or Mismatched TDS Details
ITR Filing 2023 24 10 Common Mistakes You Must Avoid Discrepancies between TDS details in your ITR and those in Form 26AS can lead to a mismatch notice from the Income Tax Department. Ensure that the TDS reflected in your form is accurately captured in your return.
Tip: Download Form 26AS from the TRACES website and reconcile it with your salary slips or TDS certificates.
Not Disclosing Exempt Income
Certain incomes, such as interest from the Public Provident Fund (PPF), agricultural income, or dividend income, are exempt but still need to be reported. Failure to disclose exempt income can trigger scrutiny.
Tip: Include all exempt incomes under the appropriate section in the ITR form to maintain transparency.
Claiming Deductions Incorrectly
ITR Filing 2023 24 10 Common Mistakes You Must Avoid Common deductions under Sections 80C, 80D, and 80G often have specific limits and conditions. Overclaiming or claiming deductions without valid proof can cause your return to be flagged.
Recommendation: Recheck eligibility criteria for each deduction and ensure you have relevant documents, such as insurance premium receipts or donation certificates.
Skipping the Verification Process
After submitting your ITR, the process is incomplete until it is verified. Many filers forget this crucial step, which can result in their return being treated as “invalid” by the tax department.
Solution: Verify your return using one of the available methods—Aadhaar OTP, net banking, or by sending a signed physical copy to the CPC, Bengaluru.
Ignoring Clubbing Provisions
If you have invested in the name of your spouse or minor child, any income generated from such investments needs to be clubbed with your income. Missing out on this provision may lead to underreporting.
Tip: Consult with a tax advisor if you have multiple family investments to ensure compliance with clubbing rules.
Not Including Previous Year’s Losses
Failing to include and carry forward losses from previous years (such as capital losses) could mean losing out on valuable tax benefits. This can impact your overall tax liability in the current year. ITR Filing 2023 24 10 Common Mistakes You Must Avoid
Tip: Use the correct ITR form to declare and carry forward losses under “Schedule CFL.”
Missing Out on Revised Returns or Rectification
If you identify mistakes after submitting your ITR, the Income Tax Department allows you to file a revised return before the end of the assessment year. However, failing to act on this provision can result in inaccurate tax records.
Recommendation: Always review your return for accuracy before filing. If errors are found post-filing, promptly submit a revised return to correct them.
Final Thoughts
Filing ITR at the last minute can be stressful, but avoiding these common mistakes can help ensure a smooth filing experience and minimize the chances of receiving notices.I TR Filing 2023 24 10 Common Mistakes You Must Avoid Always take a few extra minutes to review your form, verify your details, and make sure every income and deduction is accounted for.
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Sources : https://www.incometax.gov.in/iec/foportal/
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