If you do not file Income Tax Return (ITR) on time and correctly, you may have to face problems like income tax notices, delay in refund, additional tax and penalty. Many people unknowingly make such mistakes, due to which problems increase later.
1. Claiming wrong deduction or exemption
In recent times, the Income Tax Department has been sending more notices in such cases. The department now investigates every claim with the help of Artificial Intelligence (AI) and advanced data analytics. Showing deduction in wrong section, taking exemption without proof or giving wrong information can be a reason for notice.
2. Choosing the wrong ITR form
It is very important to choose the right ITR form.
ITR-1: Employed individual, income up to Rs 50 lakh, no capital gain.
ITR-3: For people having income from business or profession.
The department can send a defect notice if the form is filled incorrectly.
3. Filling wrong assessment year (AY)
The correct assessment year for FY 2025-26 is 2026-27. Filling wrong AY can lead to tax related problems and penalty.
4. Incorrect filling of personal information
Fill the information like name, address, mobile number, email, PAN, date of birth only as per PAN record.
If you want to take a refund, then enter the bank account number and IFSC code correctly, otherwise the refund may get stuck.
5. Not disclosing all sources of income
It is important to give information about every source of income, not just salary. As-
- interest on savings account
- FD interest
- rental income
- dividend
- capital gain
- any other income
Even if any income is tax free, it is important to give information about it.
6. Filling information in wrong format
Fill the information like date in ITR only in the prescribed format DD/MM/YYYY. Incorrect format may cause errors in returns.
7. Not matching Form 26AS
Before filling ITR, please match Form 26AS and Form 16. If TDS information is not visible in 26AS, then its tax credit will not be available.
8. Not checking AIS and TIS
Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) contain information about your income, investments and other financial transactions. Make sure to match them before filling ITR.
9. Not using Form 16 properly from two companies
If you have changed job and have received Form 16 from two companies, then the salaries of both will have to be added and shown in the ITR.
10. Not claiming HRA
Even if you have not submitted the rent receipt to the company, you can still claim HRA exemption while filing ITR. For this, PAN of the landlord may be necessary.
11. Not taking advantage of available tax deductions
Many types of tax exemptions and deductions are available under the Income Tax Act. Due to lack of correct information, many people are not able to take advantage of them.
12. Not paying advance tax
If advance tax is applicable, it is required to be deposited on the due dates. On delayed or short payment, interest at the rate of 1% per month may have to be paid.
13. Not doing e-verification of ITR on time
After filing ITR, it is necessary to e-verify it within 30 days. This can be done through Net Banking, Aadhaar OTP or EVC. If e-verification is not done, then ITR-V will have to be signed and CPC sent within the stipulated time.
14. Not giving information about Schedule AL
If your total income is more than Rs 1 crore, then it is necessary to fill Schedule AL. In this, you have to give information about your assets and their related liabilities.
15. Hiding information about foreign assets
If you are resident and ordinarily resident of India and you have a bank account, shares, mutual fund, ESOP or other property abroad, then it is mandatory to give the information in Schedule FA, whether it is taxable in India or not.
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