Income Tax Return: Filing Income Tax Return (ITR) is a crucial process, and it is essential to be cautious to prevent any errors. While certain mistakes can be rectified by filing a revised return, it can be time-consuming and require additional effort. However, it is crucial to note that some mistakes should be avoided even after filing ITR to avoid receiving a notice from the Income Tax Department. Let’s understand these mistakes in detail.
ITR Filing Deadline: The last date to file ITR for the financial year 2022-23 (Assessment Year 2023-24) is July 31, 2023. As the deadline approaches, it becomes more important to exercise extra care while filing your ITR. Tax experts advise filing the return ahead of time to avoid mistakes that can prove to be costly later on.
Income Tax Return (ITR)
Filing ITR is a crucial task, and it’s important to be aware of certain mistakes that can lead to complications. While errors in ITR can be rectified through a revised return, it can be time-consuming and require additional effort. It is equally vital to avoid mistakes even after filing ITR, as they can result in receiving a notice from the Income Tax Department. Let’s understand these mistakes in detail.
Meeting the Deadline
Filing ITR before the last date is essential to avoid penalties. Failure to file on time can result in a fine of up to Rs 10,000, along with an additional 1% tax on unpaid tax amounts.
Providing Accurate Information
While filing ITR is mandatory, providing correct personal details is equally important. Pay special attention to details such as PAN, email ID, date of birth, and IFSC code to ensure accuracy and avoid complications.
Using the Correct ITR Form
Using the correct ITR form is crucial, as using the wrong form can lead to the rejection of your filing by the tax department. Therefore, carefully select the appropriate ITR form that matches your income sources and filing requirements.
Not Checking Form 26AS
Form 26AS contains crucial information about your income, tax deductions, and tax credits. It is important to cross-check the details mentioned in Form 26AS with your Form 16 provided by your employer. Any discrepancies should be rectified before filing your ITR.
Selecting the Wrong Assessment Year
Taxpayers often confuse the assessment year and financial year. The financial year is the year in which you earn income, while the assessment year is the year in which you file your return. For the current filing, choose the assessment year 2023-24.
Not Disclosing All Savings Accounts
It is mandatory to disclose details of all your bank accounts, including any foreign bank accounts, in your ITR. Additionally, provide details of any bank accounts that were closed during the financial year.
Not Reporting Income from All Sources
Ensure that you mention income from all sources, such as rent from properties, interest from fixed deposits (FDs), capital gains, and any other additional sources of income, along with your salary or occupation. Some taxpayers make the mistake of disclosing only their salary or primary business income, omitting other sources of income.