5 Common Mistakes to Avoid While Submitting an ITR

5 Common Mistakes to Avoid While Submitting an ITR

Making errors while submitting a tax return not just renders the return worthless but also puts

the filer at risk of fines and legal action. It might be difficult or simple to complete a tax return.

Everything is based on the information and direction one is given. With so many regulations,

deductions, divisions, rules, and other factors, it is simple to become confused in the large

income tax field. Here is a list of a few of the biggest errors that taxpayers make while

submitting an ITR filing online are:

• Filing an ITR with the wrong tax form

Every taxpayer must file the appropriate ITR form to declare all of their sources of income,

both taxable & tax-exempt. The returns would be deemed defective if the ITR was

submitted using the incorrect form. Depending on how the taxpayer obtained their income,

every taxpayer may decide whether the form applies. The improper ITR form selection might

cause the returns to be deemed faulty or render the ITR null and void. Consequently, it's

crucial to choose the correct ITR form.

• Giving inaccurate personal or contact information

The taxpayer must exercise caution while providing the PAN, Aadhar, & address information.

Additionally, extra care should be used while stating the email address and phone number.

You must make sure that the information matches what is on your PAN. When you don't

supply the proper address, the Tax Department may send notices to the wrong address and

issue ex-party judgments. If you submit the correct address, the letters will be sent to the

address shown in the most recent ITR.

Consequently, it's crucial to offer the correct address. It is to be mentioned the ITR-V must

be delivered to the email address specified in the e filing income tax. On the cellphone

number provided in the ITR, reminders and notification texts for the electronic verification

process will be issued. Therefore, you must submit accurate information to prevent future

misunderstandings. To get a swift refund from the Revenue Department, it is also crucial to

offer the exact bank account information & IFSC code.

• Inputting incomplete and inaccurate bank information

Every year, many refunds aren't processed because of erroneous personal information,

including name, address, account number, & IFSC code. These frequent errors in preparing

income tax forms might delay the income-tax refund since many individuals accidentally

enter incorrect bank information. The income tax department sends all tax payments

immediately to the checking account. Therefore, always provide accurate bank account

information on income tax returns for active accounts. In contrast to prior years, a person is

now obliged to submit the specifics of every bank account they maintained throughout the

year.

• Failing to disclose income from a prior position

If a person changed occupations during a fiscal year, the change in employment status and

the income from the new position must be disclosed when submitting an ITR. Whether any

portion of the revenue is not recorded, a discrepancy will appear on both the forms 26AS as

well as the TDS certificates. The income from other employees must be disclosed, if there is

any, in a distinct row just on a revised version of Form 16.

• Not reviewing bank statements

One should constantly check their bank statement to consider the number of gifts received,

interest earned, or even other income obtained. All earnings received throughout a year

must be disclosed in income tax returns. Now that the numbers of all active bank accounts

must be reported on the ITR form, it is essential to precisely note the actual earnings

received.

A tiny error made while completing a tax return may get you into serious difficulty with the

Tax Department. Thus, income tax forms should always be done with the most excellent

care, or you can wind up paying a fine or perhaps receiving a tax notice. For example, if a

taxpayer files their tax return in the incorrect form, i.e., if they use a form that is not relevant

to them, the tax officer could view that return as a deficient return underneath the provisions

of subsection 139(9) of the Taxpayer's Income Tax Act as well as send the notification u/s

139(9) as a short return notice when processing this same ITR form.