Income Tax: A small mistake in ITR filing can delay your refund; avoid these errors..

Every year, millions of taxpayers file their income tax returns on time to receive their refunds quickly and avoid future problems. However, it's often observed that due to haste or lack of information, people make small mistakes while filing their ITRs. These mistakes may seem minor, but they can have significant consequences, leading to delayed refunds, notices, or even rejection of the return.

The Income Tax Department now operates on a data-driven system where all your information is cross-referenced from various sources. Therefore, even a small error can be detected by the system. If you want your refund to arrive without any delays, it's crucial to avoid these common but dangerous mistakes.

Not disclosing all income.

Many people think that income that is not taxable doesn't need to be declared. This is the biggest mistake. Bank interest, dividends, PPF or post office interest, agricultural income, gifts, or rent from other properties – all this information must be included in the ITR. Not paying tax is one thing, but concealing income is against the rules.

Claiming incorrect deductions
Sections like 80C, 80D, and 80G offer good opportunities to save on taxes, but you can only claim deductions for which you have the correct documentation. Claiming deductions based on estimates or showing inflated deductions will not only delay your refund but also increase the chances of an audit. Be careful that your attempt to save on taxes doesn't end up causing you more trouble.

Not verifying the return.
Many people assume that the process is complete after filing their ITR. However, the truth is that the return needs to be e-verified within 30 days. If you haven't verified it through OTP, Aadhaar, or your bank account, or haven't sent the signed ITR-V to the CPC, your return will be considered invalid, and you won't receive a refund.

Incorrect income details
When filing your ITR, the income you declare must match the information in Form 26AS, AIS, and TIS. Many people understate or overstate their salary, interest, or other income. As soon as the system detects a discrepancy, your return goes for scrutiny, and processing slows down. In many cases, a notice is also issued. Therefore, it is essential to carefully match all these statements before filing your ITR.

Choosing the wrong ITR form can also cause delays.
Many taxpayers assume that ITR-1 is for everyone, but that's not the case. If your income comes from sources other than salary, such as rent, shares, mutual funds, business, or foreign income, it is crucial to choose the correct ITR form. Filing a return with the wrong form can render it invalid, and you may have to go through the entire process again.

Do not ignore foreign income or assets.
If you have a bank account, property, or any income abroad, it is legally mandatory to declare it in Schedule FA. Ignoring this can lead to heavy penalties and lengthy investigations. With international data sharing in place today, concealing such information is not easy.

Do not rely on pre-filled data.
The pre-filled data displayed on the income tax portal is helpful, but it is not always accurate. Sometimes, the data is incomplete due to delayed updates or incorrect entries. Therefore, it is extremely important to double-check every figure yourself.