Taxpayers Alert: If you are preparing to file your income tax return, then be careful. Under the new ITR rules, if you claim fake deductions or hide your income, then you may have to face a heavy penalty.
The Income Tax Department has clearly stated that if you give wrong information in your return, then a penalty of up to 200% of the tax due can be imposed. Apart from this, 24% annual interest can also be charged and a case can be filed under section 276C. This means that a small mistake or false claim can put you in big trouble.
To avoid this, it is important that you fill in your income and deduction details correctly. Here we are going to tell you which common mistakes you should avoid and how you can avoid the penalty.
Also Read:- Will Two-Wheelers Need To Pay Toll Tax For Using National Highways? Nitin Gadkari clarified
These are some common mistakes made in ITR which can cost you heavily…
- Claiming 80C deduction without bills or proof
- If you do not have proof of the money you have spent on things like LIC, PPF or tuition fees, then that claim can be rejected by the tax department.
- Opting for the old tax regime first and then switching to the new one
- There is a deduction benefit under the old tax regime, but if you later choose the new regime, all those benefits are lost.
- Claiming HRA without rent agreement or PAN of landlord
- If you are claiming HRA, you must have proof of rent and PAN of the landlord.
- Disclosure of personal expenses as business expenses
- If expenses like mobile bill, food or travel are personal, then it would be wrong to show them as business expenses.
- Hiding freelancing, crypto, or side income
If you have earned any kind of extra income, hiding it can prove costly. It is necessary to report every income source.
What to do to avoid penalty?
- Make sure to keep proof of the item on which you are claiming deduction and it should be genuine
- Match your income with your Annual Information Statement(AIS)
- Declare every income source
- File ITR before the deadline
Keep these things in mind related to ITR
If the department finds out that you have knowingly given wrong information, then there will be no benefit in filing a revised return. Also know that even if the CA or consultant makes a mistake, the responsibility will be yours. Even if someone else has filed the return, according to the law, the accountability lies with the taxpayers. These rules apply not only to salaried people but also to employed people, freelancers, professionals and businessmen, i.e. everyone.
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