The last date for filing Income Tax Return (ITR) is approaching, and people are rapidly filing their returns online or offline. But some mistakes made in haste or carelessness can prove to be costly later. A small mistake can lead to a notice from the Income Tax Department, a refund can be stuck, or you may have to visit government offices unnecessarily. Tax experts say that it is very important to avoid these 5 mistakes. Let us know what those mistakes are and how they can be avoided.
Choosing the wrong ITR form
One of the most common mistakes is filling out the wrong ITR form. There are different forms for different sources of income.
ITR-1: This is for people who receive a salary.
ITR-2: It is used by people whose income is from salary, and they have sold shares or property.
ITR-3 or 4: These forms are for people who do business or earn from freelancing.
If you fill in the wrong form, your return may get rejected. Hence, it is most important to choose the right form as per your income.
Not disclosing all income
Many people show only their salary income and hide other income like bank interest, house rent, freelance income, or profits from the stock market. The Income Tax Department has details of all your financial transactions. If there is any discrepancy between your shown income and the data they have, you may get a notice. Hence, disclose all your income fully and correctly.
Wrong bank account and PAN number
It is common to make mistakes in bank account details while filing returns. If you fill in the wrong bank account number, IFSC code, or PAN number, your refund may get stuck or your return may get rejected. Always double-check these details before submitting the form.
Claiming wrong tax deductions
To save tax, people claim wrong tax exemptions under Section 80C, 80D, or on home loan interest. The Income Tax Department closely investigates such cases. If your claims are found to be false, you may not only have to pay a penalty, but recovery with interest may also be made. Always claim only those deductions for which you have valid documents.
Delay in filing ITR and forgetting verification
Do not wait for the last date to file returns. This year, the last date to file ITR is September 15. If you file returns after the last date, you may have to pay late fees and interest. Apart from this, it is also very important to verify the return on time after filing it. If you do not verify it within 30 days of filing the return, your return becomes invalid. By avoiding these mistakes, you can not only avoid fines and notices but also get your refund on time.