With just a few days left until the last date for filing the Income Tax Return (ITR) in 2023, it is important to know the top 10 mistakes to avoid while filing ITR online.
Though many individuals seek professional help to file their ITRs, some mistakes may still occur due to overwhelming process for average taxpayers.
Some of these mistakes include:
- Using the wrong ITR form.
- Providing incorrect personal details.
- Selecting the wrong assessment year.
- Providing incomplete or incorrect bank details.
- Not filing on time.
- Incorrect TDS details.
- Not disclosing all sources of income.
- Not selecting the right deduction claims.
- Forgetting to e-verify the ITR.
- Waiting until the last date of ITR filing.
Wrong ITR form
There are seven ITR forms: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. It is important to select the correct ITR form based on one’s profession and source of income.
For example, salaried individuals and pensioners with a total income not exceeding 50 lakh need to file ITR1. For details visit official website of Income Tax Department (click here).
Incorrect personal details
Providing correct personal details, including name, address, email, phone number, and date of birth, is mandatory while filing ITR.
These details must be accurate as the income tax department may contact taxpayers especially through email.
Selection of wrong assessment year
Choosing the correct assessment year is crucial. People often confuse the financial year with the assessment year.
For example, individuals reporting income earned during the financial year 2022-23 should note that the corresponding assessment year is 2023-24. Mentioning the wrong assessment year will be considered an incomplete ITR.
Incomplete or incorrect bank details
Taxpayers must disclose all their bank account details. Having multiple bank accounts is not a problem, but they must be disclosed in the ITRs.
Not filing on time
Taxpayers need to file their ITRs before the last date of filing, which, in the case of assessment year 2023-24, is July 31.
Failing to file the ITR before the deadline may attract penalties.
Wrong TDS details
Taxpayers should download Form 26AS from the income tax website and ensure that the details in the form match the IT department’s database without any inconsistencies.
Salaried employees can also obtain Form 16 from their employer before filing the ITR.
Not disclosing all sources of income
It is mandatory to disclose all sources of income while filing ITR. Hiding any source of income can be detected by the tax authorities as PAN is linked to all incomes.
Not reporting any source of income can result in receiving a notice from the tax department.
Not selecting the right deduction claims
Although claiming deductions is rare in the new regime of tax slabs, those opting for the old regime can still claim deductions.
It is important to select the appropriate deductions while filing ITR, supported by genuine documents.
Forgetting to e-verify ITR
Even if all the details are provided correctly and there are no mistakes in the ITR forms, it remains incomplete until it is e-verified.
The e-verification of ITRs can be done using Aadhaar OTP.
Waiting until the last date of ITR filing
It is always better to file the ITR as early as possible, as waiting until the last minute can lead to mistakes.
With only a few days left until the last date for filing ITR 2023, it is advisable to file it as soon as possible.
