Common Mistakes To Avoid While Filing The ITR

People find it very difficult and confusing to file their ITRs. However, some people may make errors when filing an ITR, which can lead to a delay or rejection of the application. With so many Income Tax (IT) requirements, ITR filing might be difficult for the common taxpayer. Not surprisingly, many errors are made when submitting the ITR.

Incorrect ITR Form

Taxpayers should be aware that there are seven different ITR forms depending on the kind of income and individual. If you pick the incorrect form, your refund may not be processed. If the Income Tax Department discovers an incorrect form option, you are likely to get a defect notice.

Incorrect Personal Information

When submitting an ITR, you provide personal information such as your name, address, email, phone number, date of birth, and PAN. However, wrong addresses, emails, and phone numbers might cause a breakdown in communication between the IT department and the taxpayer.

Incorrect Assessment Year

Sometimes someone who is not familiar gets confused between the assessment year and the fiscal year. An assessment year follows a fiscal year. If you’re reporting earnings for the fiscal year 2022-23, the appropriate assessment year is 2023-24. If you choose the wrong year, your ITE submission will be incomplete.

Not Reporting Income Details

When submitting an ITR, you must report all sources of income gained throughout the year. PAN is linked to all income, consequently, any undeclared income will be assessed and examined on the return.

Failure to e-verify the ITR

After filing your ITR, remember to e-verify the returns to finish the process. You have to send a signed physical copy to the Central Processing Centre or e-verify with Aadhaar OTP.

Incomplete Bank Details

When submitting an ITR, taxpayers must reveal their domestic and foreign bank accounts. The ITR file would be completed if all bank data were not provided.

Failure to Pre-validate Bank Account

If you do not pre-validate your bank account, the process of receiving your income tax refund will be delayed. When completing your ITR, you should check to see if your bank account is already verified.

Not Reporting Minor Income

If you have a minor child who earns money, you must include his earnings in your tax return. Failure to do so would be considered non-compliance with the tax standards.

Delaying Tax Payments

You should not delay making tax payments because the deadline is July 31st. Failure to file an ITR on time will result in a 1% monthly interest penalty on the unpaid tax amount.

Find Your Daily Dose of NEWS and Insights – Follow ViralBake on WhatsApp and Telegram

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *