Filing your ITR for the first time? Making these 7 mistakes could hold up your refund or even lead to a notice..

Filing an Income Tax Return (ITR) is a crucial responsibility for every earning individual. However, for first-time filers, the process often appears complex and confusing. Even a minor error can lead to delayed refunds, tax notices, or future complications. Therefore, it is essential to avoid certain common mistakes when filing returns for the financial year 2024-25.

**Higher likelihood of errors when filing ITR for the first time**
Upon starting a job or entering the tax bracket for the first time, many people view ITR filing merely as a formality. Some file their returns in haste, while others submit online forms without complete information. Consequently, new taxpayers often make errors that subsequently impact their tax records and refunds. Experts believe that these issues can easily be avoided with a little caution and the right information.

**Choosing the wrong ITR form can prove costly**
Selecting the incorrect form is one of the most common initial mistakes made while filing an ITR. Specific ITR forms are designated for taxpayers based on their income sources. For instance, if an individual's income is derived solely from a salary and falls within the prescribed limits, ITR-1 might be appropriate. However, if an individual has capital gains, owns more than one house, or has other specific sources of income, a different form must be filed. Selecting the wrong form can lead to the rejection of the return or a delay in receiving a refund.

**Failing to disclose all income sources can lead to problems**
Many people assume that declaring only their salary income is sufficient. However, tax regulations require the inclusion of income from sources such as savings account interest, fixed deposits, rental income, and other earnings. People often overlook interest accrued in older bank accounts. If any income is omitted and the tax department subsequently discovers it, it could result in a notice or a penalty. Therefore, providing accurate details regarding every source of income is essential.

 Ignoring Form 26AS and AIS Can Prove Costly.
Many salaried individuals file their tax returns based solely on Form 16 provided by their employer. However, it is equally important to review Form 26AS and the AIS (Annual Information Statement). These documents contain detailed information regarding tax deductions, bank transactions, and other financial activities. If discrepancies arise between these documents and the information you have provided, your refund could be delayed, or the Income Tax Department might seek clarification. Therefore, reconciling these records before filing your return is a prudent step.

Be Mindful of the Assessment Year and Fraudulent Claims
Selecting the correct Assessment Year (AY) is crucial when filing your ITR. Many new taxpayers fail to distinguish between the Financial Year (FY) and the Assessment Year, leading them to select the wrong year. This can result in technical issues with the return. Additionally, some individuals make incorrect or inflated claims under sections like 80C, 80D, or HRA to save more tax. Nowadays, the Income Tax Department verifies all information digitally; consequently, using fake bills or making false claims can lead to significant trouble in the future.

Mandatory Disclosure of All Bank Accounts
Another common mistake is providing details only for the bank account where the salary is credited. However, regulations require the disclosure of all active bank accounts. Whether it is a savings account, a current account, or an NRO account, details of all of them must be included in the return. While pre-validating a single account is sufficient for receiving a refund, concealing or forgetting to mention other accounts can raise questions later.

Forgetting ITR Verification Means an Incomplete Return
Many people assume their task is complete once the form is submitted. In reality, however, verifying the ITR after filing is mandatory. If the return is not verified, the Income Tax Department does not consider it to have been filed at all. Facilities for e-verification are available via Aadhaar OTP, net banking, and other digital modes. Experts state that filing a return with accurate information on time and completing its verification leads to faster refunds and helps avoid any unnecessary hassles in the future.

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