Your ITR Refund May Get Stuck: Avoid These 7 Mistakes At All Cost

While filing Income Tax Return (ITR) taxpayers need to avoid certain mistakes like choosing the wrong ITR form or not declaring all their income to avoid penalties. If you are filing your ITR (the time for which is drawing near) then steer clear of these common errors and avoid penalties and verifications:

 

Various forms serve various taxpayer categories according to the sources of their income. If you use the incorrect form, it may be rejected or require resubmission. So, it's crucial to choose the right ITR form. 

 

There can be lower refunds or higher tax obligations if you are making false claims for exemptions and deductions. Claiming fake deductions while filing your ITR can lead to heavy penalties.

Information about all taxes withheld and deposited against your PAN is included in Form 26AS. Ignoring this form may cause discrepancies in reported income and actual TDS. Before filing, Form 26AS should be reviewed to ensure accuracy and prevent mismatches.

Commonly made mistakes include not disclosing all sources of income, such as interest on fixed deposits, savings accounts, and rental income. If these incomes are not disclosed, there may be fines and scrutiny.

 

Those who have multiple bank accounts, should ensure to include information on all of the bank accounts when filing the returns. Should you neglect to include details about every bank account you own, your IITR can be treated as a defective return.

if you have changed jobs, income from your past and present employment must be reported when submitting your ITR. A discrepancy will be reflected in your TDS certificate (Form 16) and Form 26AS if any income from your prior employment is not disclosed. 

The deadline for filing ITRs is July 31st. Penalties may apply for late filing. Late filers may also forfeit some deductions and come under closer examination from the Income Tax Department.