ITR filing 2024: Check out the common mistakes to avoid while filing tax returns

A responsible citizen must regularly file an income tax return on time. However, there are also certain mistakes to avoid to ensure accuracy and compliance. You should be aware of common errors like incorrect information, missing deadlines, and not declaring all income sources, which may lead to penalties.

Here are a few top mistakes to avoid during ITR filing

1. Missing the deadline

One common mistake when filing your Income Tax Return (ITR) is missing the deadline. The last date for individuals to file their ITR is July 31, 2024. Any delay in filing your ITR by this date may lead to penalties ranging from ₹1,000 up to ₹10,000, depending on the duration of the delay. Moreover, late filers may lose out on certain deductions.

2. Providing inaccurate personal information

Any errors in providing personal information like name, PAN, address, etc., could lead to delays in processing, and hassles like rejections and the need for refiling. So, always be alert and fill in your details carefully.

3. Selecting the wrong ITR form

Choosing the correct ITR form is crucial. Each form is designed for specific taxpayer categories based on their sources of income. Filing the wrong form may result in rejection or require resubmission. For instance, salaried individuals should use ITR-1, while professionals and small businesses should use ITR-4.

4. Not reporting all income sources

It is important to report all sources of income while filing your income tax return. This includes interest from savings accounts, fixed deposits, and rental income. Failure to disclose these sources of income can result in penalties and thorough scrutiny.

5. Neglecting to check Form 26 AS

Make sure to check Form 26 AS, which shows all the taxes deducted and paid against your PAN. Many people overlook this form, leading to discrepancies between their reported income and actual TDS. Reviewing Form 26AS before filing helps ensure accuracy and prevents any mismatches.

6. Making errors in deductions and exemptions

If claims on deductions and exemptions are not correct, it could lead to lower refunds and tax liabilities. So, try to familiarise yourself with all the deductions available under 80C, 80D, and others. Ensure that all deductions claimed under a particular section are correct, and be prepared to provide relevant proof.

7. Forgetting to verify your ITR

Filing an ITR is just the first step. It is important to remember the process is not complete until you verify the ITR. Overlooking this step could result in having your returns deemed invalid. You can verify your ITR online using methods such as Aadhaar OTP, net banking, or by sending a signed hard copy to the Centralized Processing Center (CPC) office.

So, these are the simple steps to follow while filing an ITR. Pay attention to avoid these common mistakes while filing your ITR. It will help you to avoid penalties as well as ensure that you receive the maximum benefits from your tax filings.