Income Tax Return: If you are also going to fill ITR, then you will have to take special care of some things. Know the important things for taxpayers.
Many people find it a difficult task to file their Income Tax Return (ITR) on their own. Today we are going to tell you about 10 such mistakes, avoiding which you can easily file your ITR yourself. You can also ensure that you get your outstanding refund sitting at home. To avoid any problem and file income tax return accurately, you should try these tips.
Why is it important to file ITR?
It is important for income taxpayers to file their ITR every year for many reasons. The first thing is that by filing ITR you fulfill your legal obligation under the Income Tax Act. Along with following the tax laws and rules, the government gets information about your income from different sources through ITR. It gives you an opportunity for financial planning and ITR is also an important document for loan or visa applicants.
tax refund
By filing ITR, you can claim refund of the additional taxes (excess tax) paid by you. You can also claim credit for taxes deducted at source i.e. TDS. Apart from this, by filing ITR you can also avoid the penalty of non-compliance. Along with this, ITR proves helpful for the government in verifying financial transactions and bringing transparency in the tax system and making better financial decisions for individuals and institutions.
Especially avoid these 10 mistakes while filing ITR for 2024:
- While filling your ITR form, ensure that all the personal details like name, PAN, address and bank account details are filled correctly in the form.
- Choosing the wrong ITR form: Choose the right ITR form based on your income sources and your income type. Filling the wrong form can lead to problems and fine.
- Not giving complete information about your income: Provide information about income from all sources of income including salary, interest income, rental income, capital gains in your ITR. Not reporting all income sources can result in tax evasion penalties.
- Ignoring TDS (Tax Deducted at Source) credit: Must include TDS details in ITR from Form 16/16A issued by your employer or deductor. Failure to provide correct TDS information may result in notice and fine.
- Incomplete information about investments and deductions: Declare all investments, expenses and deductions correctly to claim eligible tax benefits under Section 80C, 80D, 80G of the Income Tax Act. Failure to do so may increase your tax liability.
- Hiding interest income: Correct information about interest earned from savings accounts, fixed deposits or other sources should be given. Non-disclosure of interest income may result in penalty.
- Form 26AS not matching: Cross-check the statements in your ITR with Form 26AS. It contains details of your TDS, tax payment and other income tax related information. Therefore, before filing ITR, its mistakes should be corrected.
- Not filing ITR on time: This is a very important thing. Do not wait till the last moment of the last date to file ITR. The last date to file ITR may vary depending on your tax bracket, so check it properly and set a reminder for yourself, as late filing of ITR may attract penalty. To avoid this penalty and interest, file your ITR on time. The due date varies depending on the category of the taxpayer and in some cases it can be extended by the government.
- Not verifying ITR: After filing ITR online, it is necessary to verify it electronically (through Aadhaar OTP, net banking etc.) or by sending a physical copy with your signature to the Income Tax Department within the stipulated time. It happens. If verification is not done, ITR filing becomes invalid. Therefore, never miss verifying your ITR.
- Not maintaining necessary records: Maintain records of all documents, receipts and evidence related to your income, investments and tax deductions, as these may be required for verification or in case of any tax investigation in future.
By avoiding these common mistakes and filing your ITR correctly, you can avoid unnecessary hassles and penalties.
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