Filing your Income Tax Return (ITR) accurately is essential to avoid notices, penalties, and processing delays. Here’s a checklist of the most common mistakes taxpayers make and how you can steer clear of them:
1. Selecting the Incorrect ITR Form
Choosing the wrong ITR form can lead to your return being marked defective.
🔹 ITR forms vary depending on income source and taxpayer category.
🔹 Filing with the wrong form may invite a defect notice, which must be rectified in time.
2. Quoting the Wrong Assessment Year (AY)
Many filers confuse the Financial Year (FY) with the Assessment Year (AY).
🔹 For FY 2023–24, the correct AY is 2024–25.
🔹 Incorrect AY may result in double taxation and penalties.
3. Providing Incorrect Personal Information
Details such as your name, address, email, mobile number, PAN, and date of birth must:
🔹 Match your PAN records.
🔹 Be entered correctly to avoid return rejection or processing issues.
4. Hiding Secondary Sources of Income
All sources of income must be disclosed, including:
🔹 Interest from savings/fixed deposits
🔹 Rental income
🔹 Capital gains
🔹 Freelance or part-time income
Non-disclosure can lead to penalties or scrutiny.
5. Not Reconciling Income and TDS with Form 26AS
Form 26AS includes:
🔹 TDS, TCS, advance tax, self-assessment tax, and high-value investments.
🔹 Always match your income and TDS with this form to ensure no mismatch.
6. Ignoring AIS and TIS
AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) include:
🔹 Securities transactions, foreign remittances, GST data, and more.
🔹 Discrepancies between reported data and AIS/TIS may lead to ITR mismatch notices.
7. Failure to E-Verify ITR
After filing, you must e-verify your ITR within 30 days using:
🔹 Net banking
🔹 Aadhaar OTP
🔹 EVC (email/mobile)
Non-verification renders your ITR invalid.
8. Not Disclosing Foreign Assets or Income
Resident and Ordinarily Resident taxpayers must disclose:
🔹 Foreign bank accounts, investments, shares, and assets.
🔹 Even if the income is non-taxable in India, Schedule FA in the ITR must be filled.
Conclusion
Avoiding these common mistakes ensures faster processing and minimizes the risk of legal complications. For seamless filing, cross-verify all details and disclosures — or consult a professional.
