Common Mistakes to Avoid while Filing Your Income Tax Return

Certainly! Filing your Income Tax Return (ITR) accurately is crucial to avoid penalties and ensure compliance. Let’s explore some common mistakes that taxpayers should steer clear of while filing their ITR: 

Using Incorrect Tax Form -

Every taxpayer must report all taxable and tax-exempt income sources using the correct ITR form applicable to their situation.

Choosing the wrong form can render the return “defective” or even invalid. It’s essential to select the appropriate ITR form based on your income sources.

Mentioning Incorrect Personal Details -

Be vigilant when providing your PAN, Aadhaar, and address details.

Ensure that these details match those in your PAN card.

The Income Tax Department communicates important notices to the address mentioned in your last ITR. Providing the correct address is crucial.

Additionally, the ITR-V (acknowledgment) is sent to the email address provided in the ITR, and e-verification reminders are sent to the mobile number listed in the ITR.

Missing the Deadline -

Failing to file your ITR within the stipulated time (usually by July 31st) can lead to penalties of up to Rs. 5,000.

Mark your calendar and meet the deadline to avoid unnecessary fines.

Not Verifying the Return -

After filing your ITR, don’t forget to verify it. Verification can be done electronically or by sending a signed physical copy (ITR-V) to the Income Tax Department.

An unverified return is incomplete and may lead to complications later.

Confusing Financial and Assessment Years -

Understand the difference between the financial year (FY) and the assessment year (AY).

The FY is the year in which you earned income, while the AY is the year in which you file your return based on that income.

Ensure you mention the correct FY and AY in your ITR.

Remember, accurate ITR filing ensures peace of mind and keeps you on the right side of tax compliance.