The last date to file your Income Tax Return (ITR) is quickly approaching on July 31. Many people have started filing their ITRs. However, in a rush, they often make mistakes that can delay their refunds or make their ITR defective. Here are 7 mistakes you should avoid when filing your ITR.
1- Be Careful When Choosing the Form
Filing Income Tax Return (ITR) is not the same for everyone, whether you are a salaried individual, a professional, or a businessperson. The Income Tax Department has issued 7 different forms for various categories of taxpayers. It’s essential to choose the correct form for your situation.
2- Don’t Claim Fake Deductions
The Income Tax Department has observed that people often misuse fake rent receipts to claim HRA benefits. Not just HRA, people also create fake documents to claim various deductions. Avoid this mistake, as it can lead to significant trouble and legal action.
3- Filling in Incorrect Personal Details
When filing your ITR, ensure that all the information you provide is accurate. Double-check your personal details such as your name, address, date of birth, email ID, mobile number, and bank account number, and fill them in the correct fields.
4- Not Pre-validating Your Bank Account
The Income Tax Department frequently reminds people to pre-validate their bank accounts. If your account is not validated, your refund might get stuck, causing inconvenience.
5- Discrepancies in TDS Details
If you don’t pay attention to the details, your return form could be rejected. Ensure that the TDS figures in your Form 26AS match those in your ITR form. Compare the data in Form 26AS and Form 16 while filing your ITR to avoid issues.
6- Hiding Income
If you are a salaried employee, your income from the company is included in Form 16. However, sometimes you may have other sources of income that you might omit. Don’t make this mistake, as hiding income can lead to a notice from the Income Tax Department, legal action, and penalties.
7- Forgetting E-Verification
Sometimes people forget to verify their ITR immediately after filing and choose to verify it within 30 days. Previously, this period was 120 days, but it has been reduced since August 1, 2022. If you forget to e-verify your ITR, you will not receive your refund.