Here are 10 common ITR filing 2024 mistakes
1. Incorrect Personal Information
One of the most basic yet common mistakes is providing incorrect personal details such as name, address, PAN (Permanent Account Number), and bank account information. These errors can result in the rejection of your ITR. Ensure that all personal details match your records exactly.
Tips to Avoid:
- Double-check your name spelling and ensure it matches your PAN card.
- Verify your address and ensure it is current.
- Cross-check your PAN and bank account numbers for accuracy.
2. Choosing the Wrong ITR Form
The Income Tax Department has prescribed different ITR forms for different types of taxpayers based on their income sources. Choosing the wrong form can lead to rejection or processing delays.
Tips to Avoid:
- Use the official Income Tax Department website or consult a tax advisor to determine the correct form for your situation.
- Read the guidelines carefully to understand which form applies to your income sources.
3. Not Reporting All Sources of Income
Taxpayers often overlook reporting all their income sources, such as interest from savings accounts, fixed deposits, rental income, and capital gains. Failure to report these can lead to penalties.
Tips to Avoid:
- Maintain a record of all income sources throughout the year.
- Cross-check with your bank statements and investment portfolios to ensure no income source is missed.
4. Incorrect Tax Deductions and Exemptions
Claiming incorrect deductions or exemptions, either by overstating them or failing to claim eligible ones, is a common mistake. This can lead to penalties or a reduced refund.
Tips to Avoid:
- Familiarize yourself with the deductions and exemptions you are eligible for under sections 80C, 80D, etc.
- Keep receipts and documentation for all claimed deductions and exemptions.
5. Mismatched TDS Details
The Tax Deducted at Source (TDS) details provided by employers, banks, or other entities must match the TDS entries in your ITR. Mismatched TDS details can lead to discrepancies and delays.
Tips to Avoid:
- Use Form 26AS to verify the TDS details recorded with the Income Tax Department.
- Ensure all TDS entries match those in your Form 16/16A and bank statements.
6. Not Verifying the ITR
Filing your ITR filing 2024 is not the final step; you must verify it within 120 days of filing. Failure to verify your return renders it invalid, and it will be considered as not filed.
Tips to Avoid:
- Use the electronic verification method (EVC) for a quick and easy verification process.
- Alternatively, send the signed ITR-V form to the CPC office within the stipulated time frame.
7. Ignoring Interest and Penalty Calculations
Many taxpayers ignore the interest and penalties for late filing or non-payment of advance tax. This can result in additional financial burdens.
Tips to Avoid:
- Calculate and pay any applicable interest under sections 234A, 234B, and 234C for late filing or shortfall in advance tax payments.
- Use the online tax payment facilities to clear any outstanding dues before filing your ITR.
8. Not Keeping Adequate Records
Maintaining proper records of all financial transactions, investments, and expenses is crucial for accurate ITR filing 2024. Inadequate record-keeping can lead to errors and potential audits.
Tips to Avoid:
- Keep digital or physical copies of all financial documents, including bank statements, investment proofs, and expense receipts.
- Organize your documents systematically for easy reference during the filing process.
9. Failure to Report Foreign Assets and Income
If you have foreign assets or income, it is mandatory to report them in your ITR filing 2024. Failure to do so can lead to severe penalties and legal consequences.
Tips to Avoid:
- Be aware of the reporting requirements for foreign assets and income under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- Consult a tax advisor if you are unsure about the reporting requirements.
10. Overlooking Bank Account Details
Providing incorrect or incomplete bank account details can delay refunds and cause processing issues. Ensure that the bank account details you provide are accurate and up-to-date.
Tips to Avoid:
- Provide the correct bank account number, IFSC code, and account type in your ITR.
- Ensure that the bank account is active and capable of receiving electronic transfers.
