Income Tax Return Filing 2023-24: Top mistakes to avoid when filing ITR
Income Tax Return Filing 2023-24: Top mistakes to avoid when filing ITR
When filing your Income Tax Return (ITR) for the assessment year 2023-24 (financial year 2022-23), it's essential to avoid certain mistakes to ensure accurate and hassle-free filing. Here are some common mistakes to watch out for:
Incorrect personal information: Double-check that your name, address, PAN (Permanent Account Number), and contact details are entered accurately. Even minor errors can lead to issues with your ITR processing.
Choosing the wrong ITR form: Make sure to select the appropriate ITR form that corresponds to your income sources and category. Using the wrong form may lead to incorrect reporting and possible penalties.
Neglecting to report all income sources: Include income from all sources, such as salary, business, rental income, interest, capital gains, etc. Failing to report any income can attract scrutiny and penalties.
Inaccurate calculations: Pay close attention to your calculations to avoid errors in computing taxable income, deductions, and tax liabilities.
Not verifying Form 26AS: Form 26AS contains important information about taxes deducted at source (TDS) and taxes paid. Verify that the details in this form match your actual income and tax deductions.
Ignoring deductions and exemptions: Be aware of the deductions and exemptions you are eligible for and claim them appropriately to reduce your tax liability.
Not disclosing foreign assets and income: If you have foreign assets or income, make sure to report them as required by the tax laws to avoid penalties for non-disclosure.
Missing the deadline: File your ITR within the due date to avoid late filing penalties and interest on unpaid taxes.
Failure to report previous losses: If you have incurred losses in previous years, ensure that you carry forward and claim them correctly to reduce tax liability.
Overlooking tax-saving investments: If you've made investments eligible for tax benefits, like in Section 80C or 80D, don't forget to claim the deductions they offer.
Not preserving documents: Keep all relevant documents, like income proofs, investment receipts, and expenditure records, as you may need them for future reference or in case of an audit.
Not e-verifying your ITR: After filing your ITR online, remember to e-verify it within the specified time frame to complete the filing process.
Incorrect bank account details: If you're eligible for a tax refund, provide accurate bank account details to avoid delays in receiving the refund.
Submitting multiple ITRs: File only one ITR for the financial year. Submitting multiple returns can cause confusion and may lead to compliance issues.
Ignoring professional advice: If you're unsure about any aspect of your ITR filing, seek guidance from a tax professional to avoid mistakes and ensure compliance.
Remember, accuracy and attention to detail are crucial when filing your ITR. Taking your time and being thorough can help you avoid costly errors and potential penalties.
