With the deadline for filing Income Tax Returns (ITR) approaching, taxpayers are actively looking for ways to save on taxes. However, it’s essential to ensure accuracy when filing ITR, as any mistakes may lead to a notice from the Income Tax Department.
As the fiscal year nears its end, so does the deadline for ITR submission. Taxpayers play a vital role in boosting the economy and often use various tax-saving schemes offered by the government. But errors in filing can lead to problems.
If taxpayers provide incorrect information in their ITR, the Income Tax Department can issue a notice under different regulations. Here are five common mistakes to avoid:
Failure to File ITR
Taxpayers within the taxable income bracket must file ITR, including those owning foreign assets. Not filing can result in a notice.
Errors in TDS (Tax Deducted at Source)
Any mismatch in TDS entries in the ITR may lead to a notice. Ensure accurate reporting of TDS before submitting your ITR.
Undeclared Income
All income sources, including investment income, must be declared in the ITR. Failure to disclose such income could trigger a notice.
High-Value Transactions
If you conduct a high-value transaction outside your typical range, it may attract scrutiny. For instance, if your income is ₹6 lakh but you deposit ₹15 lakh in a year, the department may investigate your sources.
Errors in ITR Form
Leaving out important details or making other mistakes can also lead to a notice. To avoid this, consider professional assistance for filing.
