Many taxpayers make costly errors when filing income tax returns. From wrong ITR form selection to missed deductions, here are the mistakes to watch out for.
Income tax return filing season brings with it a host of potential errors that can result in notices, penalties, or loss of refunds. Being aware of common mistakes can save you significant time, money, and stress.
1. Wrong ITR Form Selection
Selecting the incorrect ITR form is one of the most common errors. For example, salaried individuals with capital gains must use ITR-2, not ITR-1.
2. Not Reconciling with Form 26AS and AIS
Always reconcile your income and TDS with Form 26AS and the Annual Information Statement before filing. Discrepancies can trigger automated notices.
3. Missing Exempt Income Disclosure
Exempt income such as agricultural income, maturity proceeds of life insurance, and long-term capital gains up to ₹1 lakh must still be disclosed in the ITR.