ITR Filing– The work of filing income tax returns has started. The Income Tax Department has extended the last date for filing ITR for the financial year 2024-25 (AY 2025-26) from 31 July to 15 September. One should be very careful while filing income tax returns. While your refund can get stuck due to even a small mistake, you can also come under the radar of the Income Tax Department.
While filing income tax return, it is mandatory to enter all the required information correctly and upload the required documents. Usually every year many taxpayers make some common mistakes. Due to this, their return gets suspended and they are not able to get refund and have to file the return again.
Not choosing the right form: There are forms from ITR-1 to 7 for different types of taxpayers. Forms have been prescribed for different taxpayers based on the sources of income. Filling the wrong return form will make your ITR invalid and you will have to file the return again. So always use the correct form.
Not disclosing the source of income: Declare all sources of income. Not doing so can prove costly for you. Concealing income from other sources can attract a penalty of 50% to 200% of the tax liability. Information related to other income and liabilities including foreign income, assets, accounts and shares must be given in ITR.
Not giving information about big expenses: If you have made big expenses like your annual electricity bill is more than one lakh, if you have spent more than 10 lakh on credit card or have made big expenses like buying an expensive car or have made big expenses on foreign travel, then you must give information about it and show coherence between income and expenses. If this is not done, you may get income tax notice and refund may be stopped.
Not disclosing exempted income: A big mistake while filing income tax return is not declaring exempted income. Agricultural income is tax free. If you are earning income from farming, then definitely tell it. Profit share received from partner firm is tax free. If you earn income from this, then enter it in the prescribed column.
Not cross checking: Before filing ITR, cross check Form 26AS and Form 16 or TDS certificate. If the details are different, find out the reason and get it corrected from the employer. If you do not do this, the refund you get may be reduced.
Error in Form 16: If you have changed your job, then give the Form 16 received from the old employer to the new employer. So that the new employer can deduct the correct TDS. You can get the proper benefit of standard deduction. If you do not give the information, it is possible that you have got the benefit of standard deduction from both the employers, which is wrong. You may have to pay more tax at the time of return.
Giving incorrect information: Personal details like name, address, mail ID, phone number, PAN, date of birth, etc. should be written correctly in the ITR. These should match with your PAN card. If you are claiming a refund, your bank details should also be correct.
Wrong claim of HRA: Under the old tax regime, salaried persons could claim HRA exemption as part of their salary component. Rent agreement, rent receipts and PAN number of the landlord for rent up to Rs 1 lakh per annum are required for valid claims. Residence in the rented premises is also a must as the department can verify your claim.
Not doing e-verification: E-verification is necessary after filing ITR. If for some reason you are unable to do this, then sign the ITR-V form within 30 days of filing and send it to the Centralized Processing Center (CPC) by post.
