Introduction

Filing Income Tax Returns (ITR) is an annual responsibility for taxpayers in India. While it may seem straightforward, errors during the filing process can lead to penalties, notices, or unnecessary complications.

In this blog, we highlight the common mistakes taxpayers should avoid to ensure a smooth and hassle-free ITR filing experience.1. Providing Incorrect Personal Information

Errors in details like name, PAN number, or bank account information can cause issues in processing your returns.
How to Avoid: Double-check your personal information before submission.

2. Selecting the Wrong ITR Form

Using the incorrect form can lead to rejection of your return.
How to Avoid: Determine the correct ITR form based on your income type and category (individual, HUF, or company).

3. Ignoring Additional Sources of Income

Taxpayers often overlook income from sources such as:

• Interest on savings accounts or fixed deposits.
• Freelancing or part-time work.
  How to Avoid: Include all income sources in your declaration to avoid notices later.

4. Not Claiming All Eligible Deductions

Forgetting deductions under Sections 80C, 80D, or 80G can increase your tax liability.
How to Avoid: Keep a record of all tax-saving investments and eligible expenses.

5. Errors in Calculating Tax Liability

Miscalculations can lead to underpayment or overpayment of taxes.
How to Avoid: Use online tax calculators or consult a tax professional.

6. Missing Deadlines

Filing your ITR after the deadline can result in penalties and loss of certain benefits.
How to Avoid: Mark the ITR filing deadline on your calendar and file early.

7. Not Verifying Your ITR

Failure to verify your ITR within the stipulated time renders it invalid.
How to Avoid: Verify your return via Aadhaar OTP, net banking, or by sending a physical copy of ITR-V to the CPC.

8. Ignoring Previous Year’s Tax Dues or Refunds

Unpaid dues or unclaimed refunds from earlier years can complicate current filings.
How to Avoid: Check and clear past records before filing.

9. Not Keeping Proper Documentation

Inadequate proof of deductions or income can lead to scrutiny.
How to Avoid: Maintain organized records of all documents like Form 16, investment proofs, and bank statements.

10. Filing Incorrectly for Multiple Employers

Taxpayers often forget to include income from previous employers while filing.
How to Avoid: Collect Form 16 from all employers and consolidate income details.

Conclusion

Avoiding these common mistakes can save you from legal troubles and ensure a smooth tax filing process. Being proactive, organized, and informed is key to filing accurate and timely ITRs.