Income Tax News: Taxpayers Take Note! Top 10 ITR Mistakes You Must Avoid to Steer Clear of IT Lens

Income Tax News: Make sure you are familiar with the specifics of tax laws if you intend to file your taxes on your own. It's also important for you to know about all the exclusions and deductions that apply to you. Many do-it-yourself taxpayers make mistakes on their returns, which results in tax agency notices. Here are Ten ITR filing blunders to steer clear of.

Not verifying Form 26AS and AIS

Using the tax portal, review your Form 26AS and Annual Information Statement (AIS). Ensure that every income, TDS, and TCS payment is included.

Excluding 'other income'

Don't forget to declare interest, dividends, and capital gains on stocks and mutual funds. These incomes are disclosed to the tax authorities since they are included in the AIS.

Excluding losses and gains in capital

A tonne of documentation is not required in order to compute your capital gains. Request a capital gains statement from your mutual fund clearing house and broker.

Missing Exemptions

You qualify for Under Section 80TTA, bank savings interest up to Rs. 10,000 is deductible. Section 80TTB provides a larger exemption of Rs. 50,000 for senior citizens.

Failing to disclose foreign assets and income

The tax return must to include a report of any overseas assets. These consist include foreign company shares, foreign company profits, and even tiny cash stashed in foreign bank accounts.

Not reporting losses

Investment losses (stocks, funds, F&O) that are declared on the tax return may be deducted from other gains. Up to eight fiscal years are allowed for the carryover of unadjusted losses.

Deductible Expenditure Missing

Section 80D allows for a tax deduction of up to Rs. 5,000 for preventive health examinations. Senior people' medical costs are also deductible. Tax deductions are also available for some diseases and impairments.

Disregarding clubbing

Income from investments made in a child's name who is less than eighteen is combined with the parent's. Income from gifts given to a spouse must also be included with the giver's income.

Choosing wrong ITR form

For various categories of taxpayers, separate forms are required. For instance, only residents with incomes up to Rs 50 lakh are eligible to file an ITR-1; these individuals must also have income from a wage, one residential property, and other sources. Similar to ITR-3, which is used for income from a business or profession, ITR-4 is used for the presumed form of taxes, which applies to freelancers and other similar situations.

Using the incorrect Assessment Year

Making careful to enter the accurate assessment year is crucial while filing the forms. The exact matching AY for FY 2022–2023 is 2023–2024. Bringing up the incorrect AY might lead to needless fines and an increase in the likelihood of double taxes.

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