Income Tax Return: 10 ITR filing mistakes which can cost you dearly
Filing income tax returns (ITR) can be a daunting task for many taxpayers. However, avoiding the common ITR filing mistakes is essential to ensure a hassle-free return filing.
In this article, we will highlight ten crucial ITR filing mistakes to steer clear of, helping you stay compliant with tax laws and avoid unnecessary penalties. Here they go:
One of the most critical aspects of ITR filing is providing accurate personal information. This includes your full name, PAN (Permanent Account Number), email ID, and phone number. Any errors in these details can lead to processing delays or issues with your income tax return. Double-checking your personal information ensures a smooth filing process.
The government has introduced the Annual Information Statement (AIS) to enhance transparency in reporting income details. “Taxpayers should reconcile Form AIS and Form 26AS with their income records and make any necessary corrections. Providing feedback on Form AIS can help avoid inquiries from the Income Tax Department and ensure compliance,” says Swetha Kochar, Partner, PKC Management Consulting.
Also Read: Income Tax Return Filing: 10 benefits of filing ITR even when not compulsory
One of the common mistakes taxpayers make is failing to report all sources of income while filing their ITR. It is crucial to include all income, such as salary, rental income, interest income, capital gains, and business income. Overlooking any income source can attract penalties or even legal actions. So, be diligent in reporting all earnings.
Claiming deductions is an effective way to reduce your taxable income and lower your tax liability. Deductions such as medical insurance, education loan interest, and charitable donations can lead to
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