ITR Filing 2024: Mistakes by People While Filing ITR; Don’t Do These Top Mistakes
ITR Filing is significant for the Indian people if they are under the threshold limit for mandatory filing of ITR. As, the ITR Filing deadline is approaching soon, making mistakes while filing an ITR form is common because sometimes taxpayers file their tax returns in a hurry. But these mistakes can lead to penalties and other problems. Let us know about the mistakes people make while filing their ITR forms and also know the tips to avoid them.
1. Selecting the wrong ITR Form: There are so many types of taxpayers such as salaried individuals, business owners and more. For each type of taxpayer, the ITR Form is different. So taxpayers have to choose their ITR form accordingly as a wrong selection can result in the rejection of your return.
2. Wrong Filing of Personal Information: It is important for taxpayers to provide proper and correct personal information. Any mistakes in address, PAN number or email will cause a delay in their ITR processing. Keep in mind to Double-check your personal information before the submission of ITR.
3. Not Providing Full Disclosure: Taxpayers will be penalised if they fail to disclose all sources of income. Make sure to provide all the information properly without hiding anything.
4. Mismatch in TDS and ITR Amounts: The income taxpayers have given in their ITR should match properly with the Tax Deducted at Source. Make sure to match both and verify their TDS certificates and Form 26AS.
5. ITR Late Filing and Non-Verification: If taxpayers do not file their ITR on time it will lead to penalties or even render it invalid. Or, late filing or filing after the due date will impose late fees. Do file ITR on time and verify the return before the due date.
6. Providing Wrong Bank Details: The taxpayer’s income tax refunds will be delayed if they have provided the wrong bank details. Make sure to give accurate account numbers and IFSC codes to avoid any problems.
7. Not Filing FSI Schedule: It is important for taxpayers to fill Schedule FSI (Foreign Source Income), if they have any foreign income, otherwise, it will lead to incorrect tax calculation and they will be penalised. It is compulsory to disclose their foreign income.
8. Mistakes in Carry Forward: Do write previous carry forward recordings correctly. If they make any mistake in entries then it will affect their tax liability.
9. Forgetting Schedule AL: Taxpayers must and indeed fill the Schedule AL (Assets and Liabilities) if they’re earning a high income. The threshold of income is more than Rs.50 Lakh. They will be penalized if they ignore this schedule in the ITR.
10. Mistakes in Tax Deductions Claim: Make sure to claim the deduction they are eligible for while providing the correct details. Claiming incorrect tax deductions can lead to problems.
11. Not being able to differentiate between LTCG and STCG: The taxation of both Long term capital gains (LTCG) and Short term capital gains (STCG) are different. They have to classify and report them correctly to avoid any problems in your tax calculation.
Filing ITR correctly will save them from many issues and problems. Avoid making these mistakes mentioned above. This will help to make the ITR filing process easy and without any hurdles. Even, if taxpayers made mistakes and submitted their ITR, they still have a chance to correct it till 31st December via filing ITR-U with late fees.
