Income Tax Return Filing: 10 Common Errors to Avoid in AY 2024–2025 ITR Submission
Income Tax Return Filing: Although submitting your ITR may seem difficult at first, there are a few common errors you can avoid to streamline the process and guarantee that you get any owed refunds. Error avoidance is essential to guarantee correctness and avert any possible problems with the income tax department.
Why is Important to File an ITR?
It’s important to file your ITR for a number of reasons. It primarily satisfies a legal need under the Income Tax Act, guaranteeing adherence to tax rules and guidelines. It also records your income from various sources, which helps with financial planning and gives you the paperwork you need when applying for loans or visas.
Return of Taxes
You may avoid fines for non-compliance by filing an ITR, which also allows you to claim tax refunds for excess taxes paid and credits for taxes deducted at source. It also acts as a means of government verification of financial transactions, enhancing tax system transparency and enabling improved financial decision-making for both people and organizations.
When submitting your 2024 ITR, keep an eye out for the following important items:
Inaccurate Personal Information: Make sure that all personal information, including name, address, bank account information, and PAN (Permanent Account Number), is correctly entered on the ITR form.
Choosing the Wrong ITR Form: Take into account the sources and type of your income while choosing the correct ITR form. Using the incorrect form might result in errors and be penalized.
Failing to Report All Income: Make sure you report all of your income, including capital gains, interest income, rental income, and pay. Penalties for tax evasion may result from failing to record all sources of income.
Ignoring Credits for TDS (Tax Deducted at Source): Don’t forget to include the TDS information that your employer or deductor sent you on Form 16/16A. Penalties and tax notifications may be issued for failure to report TDS.
Incomplete Investment and Deduction Declarations: In order to be eligible for tax advantages under sections 80C, 80D, 80G, and so on, you must correctly declare all of your investments, costs, and deductions. A larger tax obligation may result from missing out on deductions.
Ignoring Interest Income: It is important to appropriately record interest received from fixed deposits, savings accounts, and other sources. Penalties may result from failure to report interest income.
Not Reconciling Form 26AS: Compare the information in your ITR with Form 26AS, which includes tax payments, TDS details, and other pertinent data. Before submitting, discrepancies must be fixed.
Not Enough Time to File: This one is significant! Don’t put off filing until the last minute. Depending on your tax bracket, the deadline for submitting your ITR may change, so be sure to check and give yourself a reminder.
Late filing may result in penalties. To avoid fines and interest for late filing, make sure your ITR is filed on time by the deadline. Depending on the taxpayer’s category, there are several deadlines, and the government may extend them in certain circumstances.
Not Verifying the ITR: It’s crucial to verify the ITR electronically (using net banking, Aadhaar OTP, etc.) or by mailing a signed hard copy to the Income Tax Department within the allotted time frame after submitting it online. If this isn’t verified, the filing might be deemed void. If you overlook this step, your return will be deemed void.
Not Keeping Records: Keep track of all correspondence, invoices, and supporting documentation pertaining to earnings, investments, and deductions. These could be needed for validation or in the event of a future tax investigation.
You may steer clear of needless delays and fines and guarantee a more seamless tax filing process by being aware of these typical errors and taking the time to complete your ITR appropriately.
