Common Mistakes to Avoid When Filing Income Tax Returns
| Mistake | Description | Relatable Example |
|---|---|---|
| 1. Incorrect ITR Form | Choose the right form based on your income type. Incorrect forms lead to defective notices. | Ravi, a salaried employee, accidentally selected the ITR-3 form meant for businesses, causing issues. |
| 2. Wrong Assessment Year | Ensure the correct AY is mentioned (e.g., FY 2023-24 corresponds to AY 2024-25). | Anjali entered the wrong AY, leading to a mismatch in her filing and a delay in refund processing. |
| 3. Incorrect Personal Information | Verify all personal details match your PAN, especially for refunds and claims. | Meera mistyped her PAN number, which led to errors in her e-filing. |
| 4. Omitting Other Income | Disclose all income sources, including interest and rental income, even if exempt. | Karan forgot to report interest from his savings account, which later caused a notice. |
| 5. Manual Entry Errors | Follow the required formats precisely, e.g., dates in DD/MM/YYYY. | Rohan incorrectly entered the date format, causing a validation error on the ITR portal. |
| 6. TDS & Income Reconciliation | Cross-check Form 26AS to ensure TDS deductions are accurately reflected in your return. | Rita didn’t reconcile her TDS from Form 26AS, resulting in an under-reported tax credit. |
| 7. AIS/TIS Discrepancies | Ensure all amounts reported in AIS/TIS match your actual income and investments. | Suresh noticed a mismatch between AIS data and his returns, causing unnecessary scrutiny. |
| 8. Multiple Form 16s | Aggregate income from multiple employers accurately when changing jobs. | Sonal had two jobs in one year but forgot to combine her Form 16s, causing under-reporting of income. |
| 9. HRA Documentation | Submit rent receipts and obtain your landlord’s PAN for HRA claims. | Raj didn’t get rent receipts and his HRA claim was rejected. |
| 10. Ignoring Deductions | Claim all eligible deductions to reduce your tax liability, such as 80C for investments. | Tina forgot to claim her 80C deductions and ended up paying more tax than needed. |
| 11. Not Paying Advance Tax | Pay advance tax in four installments to avoid interest and penalties. | Vikas missed paying his advance tax, resulting in an interest penalty. |
| 12. NSC Interest Taxation | Report NSC interest as income from other sources while claiming deductions under 80C. | Neha forgot to report NSC interest, which was later flagged by tax authorities. |
| 13. Delayed E-Verification | E-verify your return within 30 days or send ITR-V to CPC if unable to e-verify. | Sonia didn’t e-verify her return within the deadline, delaying her refund. |
| 14. Ignoring Tax Notices | Respond promptly to any notices from the tax department to avoid penalties. | Ajay ignored a tax notice and faced hefty penalties later. |
| 15. Missing Schedule AL | If income exceeds ₹50 lakh, complete Schedule AL with asset and liability details. | Manoj, with high net worth, failed to fill Schedule AL, causing a compliance issue. |
| 16. Foreign Assets Disclosure | Report foreign income and assets in Schedule FA, regardless of tax status in India. | Ravi didn’t report his overseas bank account and received a tax notice for non-disclosure. |
FAQs:
Q1: What if I don’t e-verify my return?
A: Your ITR will be considered invalid, and you might miss out on tax refunds. E-verification is mandatory within 30 days of filing.
Q2: Can I change my ITR form after submission?
A: Yes, you can revise your return using the correct form before the assessment year ends.
Key Resources:
Double-check your Form 26AS before filing! It’s the quickest way to avoid reconciliation issues with TDS and income details.