Income Tax Filing For AY23-24: Avoid These 5 Mistakes While Filing ITR

Whether you file ITR online or offline, make sure that you choose the correct ITR form. In total, there are seven types of forms that are used by taxpayers.?

New Delhi: The last date for filing Income Tax Return (ITR) for Assessment Year (AY) 2023-24 is 31 July 2023 for most taxpayers, as per Tax Guru. Filing income tax yourself is not a hard task considering the fact that it has been simplified to a very good extent now. However, you should pay close attention and ensure that you don’t make some common mistakes that many people do.?So far, 7,55,412 returns have been filed for AY2023-24.

ITR Form Must Be Chosen Correctly

Whether you file ITR online or offline, make sure that you choose the correct ITR form. In total, there are seven types of forms that are used by taxpayers.

1. ITR-1: Resident individuals having income less than or equal to Rs 50 lakh from salary/pension, one house property, and other sources.
2. ITR-2: For individuals with income greater Rs 50 lakh. Those who receive income from capital gains, from more than one house property, from foreign income/foreign asset, crypto income (if reported as capital gains). ITR-2 is also filed by individuals holding directorship in a company or those holding unlisted equity shares.
3. ITR-3: Individuals having every income from ITR-2, those who are in business or profession, those who have crypto income reported as business income, and those who are partners in a firm.
4. ITR-4: This is filed by resident individuals and HUFs having total income greater than or equal to Rs 50 lakh. Those who have every income from ITR-1. Those who have income from salary/pension, one house property, other sources, also those who have presumptive income.
5. ITR-5: This is applicable to firms, LLPs, AOPs, BOIs
6. ITR-6: Companies that are not claiming exemption under Section 11.
7. ITR-7: If the person comes under Section 139(4A), Section 139(4B),Section 139(4C), Section 139(4D).

Not Reporting All Income Sources

You must ensure that all your income sources are reported in the ITR. Failing to do so could be seen as a violation of the Income Tax Act, and the tax authority may send you a notice. Individuals having multiple income sources apart from salaries, such as interest earned on bank savings account, fixed deposits, insurance, stocks, mutual funds et cetera should be reported, even if it’s tax-free.

If you changed you job, it’s necessary to?report income earned through both employers. If you have any investment income under your child’s name, it should also be mentioned while filing tax returns.

Not Disclosing Your Assets

Individual taxpayers should disclose their assets while filing the ITR. In case of immovable assets such as land, building, you have to provide the description of the asset, its address, and the cost of such property.

Mistakes in Claiming Deductions Under Section 80C

There’s a common misbelief that employer’s contribution to the Employee Provident Fund (EPF) has to be included in claiming Section 80C benefits. It is incorrect. Similarly, only the principal repaid on housing loan is eligible for Section 80C. Many other deductions are claimed under wrong heads leading to their rejection. So please cross-check before filling your form.

Discrepancy in TDS Details

You must verify details on Form-26 AS credit of TDS (tax deducted at source) held with I-T Department. In case your employer who has deducted TDS does not deposit the same with the I-T department or fails to mention your PAN correctly, that amount will not reflect in Form-26 AS, leading to default. Hence do check that credit for TDS deducted has been mentioned in Form-26 AS. If there is a mismatch, take timely action to rectify the same.

To download your Form-26AS, you can login to your account on the e-filing website, https://www.incometax.gov.in/iec/foportal/. Once logged in, click on ‘View 26AS (Tax Credit)’ under the ‘My Account’ tab. The website will redirect you to the TRACES website to download the form.