Filing your Income Tax Return (ITR) accurately and on time is crucial to avoid penalties, ensure timely refunds, and maintain compliance with tax regulations. Here are ten common mistakes to steer clear of when filing your ITR for the financial year 2024–25:
1. Providing Incorrect Personal Information
Errors in personal details such as PAN, Aadhaar number, name, date of birth, or bank account information can lead to processing delays or even rejection of your return. Ensure that all personal information matches official records to facilitate smooth processing and timely refunds.
2. Selecting the Wrong ITR Form
Choosing an incorrect ITR form based on your income sources can result in your return being marked as defective. For instance, salaried individuals with no other income should use ITR-1, while those with capital gains or multiple income sources may need to use ITR-2 or ITR-3.
3. Failing to Report All Income Sources
All income, including interest from savings accounts, fixed deposits, rental income, freelance earnings, or income from previous employers, must be reported. Omitting any income can lead to discrepancies and potential penalties.
4. Not Reconciling with Form 26AS
Form 26AS provides a consolidated record of taxes deducted, taxes collected, and advance tax payments. Ensure that the income and tax details in your ITR match those in Form 26AS to avoid mismatches and notices from the tax department.
5. Missing the Filing Deadline
The deadline for filing ITR for the financial year 2024–25 is July 31, 2025. Filing after this date can attract late fees up to ₹10,000, interest on unpaid taxes, and loss of certain benefits like carrying forward losses.
6. Incorrect Claiming of Deductions
Claiming deductions without proper documentation or understanding can lead to disallowance. Ensure you have valid proofs for deductions under sections like 80C (investments), 80D (medical insurance), and 80G (donations).
7. Not Disclosing All Bank Accounts
All active bank accounts, except dormant ones, must be disclosed in your ITR. Failure to do so can raise suspicions and may lead to scrutiny.
8. Incorrect Assessment Year Selection
The assessment year is the year following the financial year in which income is assessed. For income earned between April 1, 2024, and March 31, 2025 (FY 2024–25), the correct assessment year is 2025–26. Selecting the wrong assessment year can lead to processing issues.
9. Not Verifying the ITR
After filing, it’s mandatory to verify your ITR within 30 days, either electronically or by sending a signed physical copy to the Centralized Processing Center (CPC). Unverified returns are considered invalid.
10. Neglecting to File Revised Returns
If you discover errors after filing, you can submit a revised return before the deadline. Failing to correct mistakes can lead to penalties or scrutiny.
Final Tips:
- Use Official Portals: File your returns through the official Income Tax Department portal or trusted platforms.
- Maintain Records: Keep all relevant documents and proofs for at least six years.
- Seek Professional Help: If unsure, consult a tax professional to ensure accurate filing.
By avoiding these common mistakes, you can ensure a smooth and hassle-free ITR filing process.
Read More: Commissioner (Appeals) Can’t Condone Delay Beyond 30 Days: CESTAT
