Common ITR Filing Mistakes

Filing your Income Tax Return (ITR) correctly is very important. The following ITR filing mistakes creates notices, delayed refunds, penalties, or unnecessary tax demands:

• Choosing the wrong ITR form is a common and serious filing error. Different forms apply to salaried individuals, freelancers, traders, professionals, and business owners. Filing under the incorrect form will make the return defective.

• Many taxpayers file returns without properly checking AIS and Form 26AS. Income disclosed in the return should match the records available with the Income Tax Department. Mismatches result in notices and additional clarification requirements.

• Interest income from savings accounts, fixed deposits, and recurring deposits is frequently ignored during filing. Even small amounts of interest income must be reported correctly in the return.

• Incorrect deduction claims under sections like 80C, 80D, home loan interest, or donations can create problems during assessment. Deductions should only be claimed when eligibility conditions are fulfilled and proper supporting documents are available.

• Taxpayers involved in shares, mutual funds, crypto, futures and options, or property transactions often fail to report capital gains accurately. Both short-term and long-term gains must be disclosed correctly to avoid future tax disputes.

• Additional income sources such as freelance income, consultancy income, rental income, commission income, or side business earnings are sometimes missed while filing returns. Incomplete income disclosure can create compliance complications later.

• Many taxpayers select the wrong tax regime without proper comparison between the old and new regime. This frequently results in higher tax liability and loss of eligible deductions or exemptions.

• Incorrect bank account details or IFSC codes can delay refund processing and create unnecessary issues.

• Some taxpayers complete the filing process but forget to verify the ITR. An unverified return is treated as incomplete and is not processed by the Income Tax Department.

• Last-minute filing significantly increases the chances of errors such as incorrect entries, missed details, calculation mistakes, or failed verification.

CA. Anil Gupta

Anil R T and Company

Chartered Accountants

Ph.:+91 7668163388

Website: anilrt.com

Email: ANILRTCO@gmail.com