ITR Filing Mistakes AY 2024-25: The Income Tax Department has reminded taxpayers to file ITR for AY 2024-25 (or FY 2023-24) by July 31, 2024. Salaried individuals have also received Form 16. Filing Income Tax Returns (ITR) is an essential annual task for every taxpayer in India. Despite the streamlined e-filing process, many individuals still make common mistakes that can result in penalties, delays in refunds, or scrutiny by the income tax department. To ensure a smooth filing experience for the Assessment Year (AY) 2024-25, it’s important to be aware of and avoid these common errors.
Also Read: Who Needs to File ITR for AY 2024-25 and What Happens If You Don’t?
1. Missing the Deadline
One of the most frequent mistakes is missing the ITR filing deadline. For AY 2024-25, the due date is typically July 31, 2024, for individuals. Filing late can attract penalties and interest on any unpaid tax. To avoid this, set reminders well in advance and ensure all necessary documents are ready before the deadline.
2. Incorrect Personal Information
Errors in personal details such as PAN number, name, address, or bank account information can lead to complications in processing your return. Double-check all entered information to ensure accuracy. Any discrepancies can delay refunds or cause your return to be flagged for review.
3. Selecting the Wrong ITR Form
Choosing the incorrect ITR form can lead to rejection of your return. There are different ITR forms for various types of taxpayers and income. For example:
ITR-1: For individuals with income from salary, one house property, and other sources up to Rs 50 lakh.
ITR-2: For individuals with income from salary, more than one house property, capital gains, etc.
Understand which form applies to your situation to avoid this mistake.
4. Not Reporting All Sources of Income
It is essential to report all sources of income, including interest from savings accounts, fixed deposits, rental income, and any other income. Failure to do so can lead to penalties for underreporting income. Ensure you gather and report all your income sources accurately.
5. Ignoring Form 26AS and AIS
Form 26AS and the Annual Information Statement (AIS) are crucial for cross-verifying the income reported in your ITR. These forms contain details of taxes deducted at source (TDS), advance tax, and self-assessment tax paid during the year. Compare these statements with your records to ensure there are no discrepancies.
Also Read: What To Do If Form 16 Details Do Not Match Form 26AS To Avoid IT Dept Notices
6. Incorrectly Claiming Deductions
Claiming deductions incorrectly is a common error. Make sure you are aware of the deductions available under sections like 80C, 80D, 80G, etc., and claim only what you are eligible for. Keep the necessary documentation to support your claims in case of any queries from the tax authorities.
7. Not Verifying the ITR
After filing the ITR, it is crucial to verify it within the stipulated time frame. An unverified return is considered invalid. You can verify your ITR electronically through methods like Aadhaar OTP, net banking, or by sending a signed physical copy of ITR-V to the Centralised Processing Centre (CPC).
Also Read: What Happens If You Don’t E-verify Return Within 30 Days Of Filing?
8. Overlooking Advance Tax Payments
If your total tax liability exceeds Rs 10,000 in a financial year, you are required to pay advance tax. Failure to do so can result in interest penalties under sections 234B and 234C. Calculate your tax liability in advance and pay the necessary installments to avoid this mistake.
9. Incorrect Computation of Capital Gains
Calculating capital gains, especially for properties and investments, can be complex. Ensure you consider the cost of acquisition, cost of improvement, and indexation benefits accurately. Miscalculations can lead to incorrect tax payments and potential penalties.
10. Not Keeping Records
Maintain thorough records of all income, deductions, and tax payments for at least six years. This documentation is crucial in case of any scrutiny or reassessment by the tax authorities.
Conclusion
Filing your ITR accurately and on time is essential to avoid penalties and ensure smooth processing. By being aware of and avoiding these common mistakes, you can streamline your tax filing process for AY 2024-25.
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