ITR Tips: Alert for those filing ITR, do not make these 10 mistakes even by mistake, you will be in trouble..
The process of filing an Income Tax Return (ITR) for the financial year 2023-24 has started. Experts advise that before filing ITR, match all your transactions and tax deductions with Form-16, AIS, and Form 26AS. AIS and Form 26AS will be available from the Income Tax Department website. If the data of these two documents does not match correctly then the return may be rejected. Companies will issue Form-16 to their employees this month.
Do this work first
If you have not linked PAN and Aadhaar yet, complete this task first.
If you want to get a full refund on time, then check your mobile and PAN number with your bank. If there is an error, ask the bank for a fresh KYC.
That is why Form 16 is necessary
Form-16 is issued to salaried employees by their employer to file income tax returns. This form is usually given by May. It gives information about the employee's income and the tax deducted by the employer.
If there is no Form-16
If the taxpayer does not have Form 16, then the Annual Information Statement and Form 26AS can also suffice. Both these forms contain complete details of all transactions made by the taxpayer throughout the financial year, total income earned, investments, and TDS deducted by the company.
It is important to avoid these mistakes:
Incorrect personal information: Taxpayers should ensure that while filing ITR, all personal information like name, PAN, address, and bank account details are filled correctly in the form.
Choosing the wrong form: It is important to choose the right ITR form depending on the source of income and type of income. Filling wrong forms may result in a penalty.
Complete income information: Provide information about income from all types of sources including salary, interest income, rent income, and capital gains in ITR. Hiding this may result in a penalty for tax evasion.
TDS: Must mention the details of TDS from Form 16 and 16A issued by the employer in the ITR. Failure to provide correct TDS information may result in a penalty.
Investments & Deductions: Declare all investments, expenses, and deductions to claim eligible tax benefits under Sections 80C, 80D, and 80G. Failure to do so may increase tax liability.
Income from interest: It is mandatory to disclose interest earned from a savings account, FD, or other source.
Mismatch: All details filled in ITR must be matched with the Annual Information Statement (AIS) and Form 26AS. This can be achieved by downloading the AIS app.
Timely filing: Late filing of ITR may attract a penalty.
ITR Verification: After filing the return online, it must be verified electronically (through OTP or net banking). Without this, the process will not be completed.
Important Records: Maintain all documents, receipts, and evidence related to income, investments, and tax deductions. These may be needed in any future investigation.
Follow our Whatsapp Channel for latest update